When a market price moves really fast without any motives or the market prices just jumps to another and comes back in a moment, there are mainly three reasons for that price movement.

1. Market volatility is extremely high

Especially during News Time, relevant market prices tend to change quickly as its volatility gets high.

Normally market volatility lasts for a few minutes or at least a few moments, so you should be able to understand if the extreme price movement was due to market situation or not.

2. Error on Liquidity Providers’ sides

Normally Online Forex brokers are receiving available prices from its liquidity providers and send it to their trading platform after integrating them all.

So the price movements you are seeing is the prices offered by its liquidity providers such as Mega-Banks, but not from Forex brokers.

If one of the liquidity providers’ system caused an error on the displayed price, then it could cause some prices gaps on the price chart.

In this case, the broker should be aware of which liquidity provider caused the error, and should be able to rectify the trades affected by the error.

3. Error by Brokers

Sometimes a Forex broker can also cause an error on price chart and cause a huge price gap on its price chart.

If your Forex broker is providing honest financial business, they should rectify the error though, some Forex brokers may not do that.

In this case, you wouldn’t know if the price gap was really an error or intentional.

Several major Japanese Forex brokers are also accused by investors of manipulating prices and creating huge price gaps often though, no one can really confirm if the price gap caused intentionally or not.

Unfortunately, if your Forex broker is suspended of doing some sketchy job, you may just want to change the broker to another to avoid future troubles.

List of Forex Brokers