Can anyone who trades forex or who otherwise has the data confirm what's going on here...
I had open a forward contract dated 15-Nov-2005 sell AUD / buy USD (so I'm bearish on the AUD).
Whenever I have checked the forward rate has been considerably less than the spot rate. Right now it's -0.0067 so about 76.5 cents spot or 75.83 forward for November 15. OK so far.
My stop loss was taken out on the 14th of June at a level significantly ABOVE the highest point reached by the SPOT price on that day. Now, for this to happen the gap between spot and forward rates would not only have had to narrow, it would have had to reverse.
This wasn't the case (reversal of the gap) when I looked at the market on that day and it isn't now so it must have been a pretty quick movement.
What I'm thinking is that the broker has done something funny. Can anyone confirm what actually happend in this market yesterday? I have sent the broker an email asking for an explanation but would like to know if I'm right or not since they will probably phone tomorrow (well, they're always phoning with promotional offers so I guess they will respond to my email).