In forex and CFD trading, setting a Take Profit (TP) and Stop Loss (SL) is essential to managing risk and securing profits. These orders automatically close positions once specific price levels are reached, helping traders stick to their strategy without needing to monitor the market constantly. However, a concerning practice occurs when a broker’s mobile app disables the TP/SL buttons during periods of high volatility. This tactic can prevent traders from protecting their positions during market-moving events, leaving them exposed to excessive risk or missing out on profit-taking opportunities. Recognising this practice is crucial for ensuring that your trades are executed as intended, even during periods of high volatility.

Why Would a Broker Disable TP/SL Buttons During Volatility?

A legitimate broker allows traders to set TP and SL orders at all times, even during volatile periods. When a broker disables the TP/SL buttons during volatility, it typically happens for the following reasons:

• Avoiding slippage disputes: Brokers may disable TP/SL orders to avoid situations where they would be forced to execute at prices worse than the trader’s set TP or SL during volatile market conditions.
• Reducing risk exposure for the broker: During periods of high volatility, brokers may disable TP/SL to prevent traders from exiting positions quickly, potentially creating liquidity issues or large payout obligations.
• Preventing excessive trading during volatility: Brokers may impose this restriction to prevent traders from making hasty decisions based on market noise, although this could hinder a trader’s strategy.
• Technical limitations: In some cases, the broker’s platform may not be equipped to handle TP/SL orders properly during volatile periods, leading to the temporary disabling of these features.
• Market manipulation or hidden practices: Some brokers, particularly those operating on a B-book model (where they profit from client losses), might disable TP/SL buttons to limit their exposure to clients’ profitable trades during volatile events.

A transparent broker ensures that TP and SL orders are always available, even during periods of heightened market volatility, allowing traders to manage their risk effectively.

The Risks of Disabling TP/SL Buttons During Volatility

Increased exposure to risk:
Without the ability to set TP and SL levels, you are forced to manually monitor your positions, making it harder to manage risk effectively, especially during fast-moving or volatile market events.

Missed profit-taking opportunities:
You could miss out on locking in profits if the market quickly moves in your favour and you are unable to set a TP level during high volatility.

Wider losses during rapid price movements:
If the market moves against your position, you could face larger-than-expected losses due to the inability to set a stop loss in volatile conditions.

Frustration and confusion:
Repeatedly facing disabled TP/SL functionality can create confusion, leading to frustration when you are unable to execute your trading strategy as planned, especially in the heat of a volatile market.

Lack of control over trades:
Without the ability to set protective orders, your ability to control your trades and manage risk effectively is significantly limited, making it harder to stick to your strategy.

Signs That a Broker Is Disabling TP/SL Buttons Unfairly

TP/SL buttons disappear during news events or high volatility:
You notice that during significant market events (e.g., economic releases, geopolitical news), the TP/SL buttons are either greyed out or completely unavailable on the mobile app.

Inability to set stop losses during volatile periods:
When attempting to set a stop loss, you are unable to do so, or the feature is unavailable, even though market conditions warrant the use of a stop loss for risk management.

No explanation or justification from customer support:
When you reach out to customer support, you receive vague or unclear explanations about why the TP/SL buttons are disabled, without any reasonable justification for the restriction.

Disabled TP/SL when trades are most needed:
During high volatility or rapidly changing market conditions, you find that the ability to set or adjust TP/SL is often disabled, leaving you exposed to increased risk.

Frequent disabling during profitable trades:
You observe that the TP/SL functionality is disabled more frequently after profitable trades, possibly indicating that the broker may be limiting your ability to secure profits.

What to Do If the TP/SL Buttons Are Disabled During Volatility

Request a detailed explanation from the broker:
Ask the broker why the TP/SL buttons are being disabled during high volatility. Request a clear, written explanation and whether this is a temporary feature or an ongoing limitation.

Document all occurrences of disabled TP/SL:
Keep a record of when the TP/SL functionality is disabled, including the specific market conditions (e.g., economic news releases, volatility spikes). This documentation can help in disputes or complaints.

Test the platform during non-volatile periods:
Test the functionality of the app during non-volatile periods to see if the issue is specific to high volatility or a broader issue with the platform’s functionality.

Escalate the issue to customer support or compliance team:
If the issue persists or there is no satisfactory explanation, escalate the issue to a higher level of customer support or the broker’s compliance team to investigate and resolve the matter.

Report to the regulator:
If your broker is regulated, such as Intertrader, AvaTrade, TiBiGlobe, Vantage, or Markets.com, report the issue to the appropriate regulatory authority with evidence of unfair practice or technical failure.

Withdraw your funds if necessary:
If the issue is unresolved or the broker cannot provide a reasonable explanation, consider withdrawing your funds and moving to a more reliable broker that offers consistent functionality, even during volatile market conditions.

Warn other traders:
Share your experience on independent review platforms, trading forums, or social media to help other traders avoid brokers who restrict critical features like TP/SL during volatile market events.

How to Avoid Brokers That Disable TP/SL During Volatility

Choose brokers with transparent execution policies:
Select brokers who offer transparent and reliable trade execution, ensuring that TP/SL orders are available even during high volatility or market-moving events.

Test the platform with a demo account:
Before committing significant capital, test the broker’s platform with a demo account. Place trades during both normal and volatile market conditions to check if TP/SL orders are consistently available.

Look for brokers that allow full control over risk management:
Choose brokers that provide complete control over your trades and risk management tools, ensuring that you can set TP and SL orders at all times, regardless of market conditions.

Ensure reliable customer support:
Select brokers with responsive and helpful customer support, who can assist with any technical issues or provide a clear explanation if TP/SL orders are temporarily disabled.

Read reviews from other traders:
Check independent reviews and feedback from other traders regarding their experiences with TP/SL functionality and trade execution, especially during volatile periods.

Conclusion

When a broker disables TP/SL buttons during periods of volatility, it significantly limits a trader’s ability to manage risk and protect their profits. This practice can lead to frustration, confusion, and potential losses, particularly if it occurs during critical moments in the market. Traders must stay vigilant, request explanations from the broker, and choose platforms that offer full control over risk management tools at all times.

Learn how to protect your trades, spot broker manipulation early, and build a secure trading strategy by joining our Trading Courses. Stay informed, stay empowered, and ensure that your trading experience is never compromised by brokers who limit essential functionality during volatile market conditions.