Stopped out...?

PanagiotisCharalampous
01 Jun 2020, 08:29

Hi sheachgordon,

For execution issues you should contact your broker.

Best Regards,

Panagiotis 

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intraflay
01 Jun 2020, 21:32

RE:

sheachgordon said:

I would like to know why you did not record the correct high yesterday with CAD JPY? It is a demo account but doesnt inspire confidence to invest real money... 78.423 should have been recorded as the high which was above my TP

Please explain

Mate, this is a regular noob worry / question (I had to once learn it the hard way too! haha).....I'll try to explain what's happened....you have to understand and take into account firstly the spread, and secondly, which value the candles are printed by.  Firstly - when buying IE.. if u were short, your stop loss on a short position would be for a buy order - you buy at the ASK price line.. the highest of the two... BUT, if the candles are printed on your chart by the highest bid price that was traded (which is normally the case), then you will see this happen.  Price has got up to and traded at BID price close to your stop and printed as such.. But what has actually happened is that price has also traded at the ask price (where your stop was) and so you have been stopped out.  It happens sometimes, and especially when there is low liquidity such as through the night when the spreads are wide.  And of course, the same would be true on sell stops for the opposite direction if your candles were printed according to the ask price.

Hope this makes sense.  

intraflay
01 Jun 2020, 21:41

RE: RE:

intraflay said:

sheachgordon said:

I would like to know why you did not record the correct high yesterday with CAD JPY? It is a demo account but doesnt inspire confidence to invest real money... 78.423 should have been recorded as the high which was above my TP

Please explain

 

Mate, this is a regular noob worry / question (I had to once learn it the hard way too! haha).....I'll try to explain what's happened....you have to understand and take into account firstly the spread, and secondly, which value the candles are printed by.  Firstly - when buying IE.. if u were short, your stop loss on a short position would be for a buy order - you buy at the ASK price line.. the highest of the two... BUT, if the candles are printed on your chart by the highest bid price that was traded (which is normally the case), then you will see this happen.  Price has got up to and traded at BID price close to your stop and printed as such.. But what has actually happened is that price has also traded at the ask price (where your stop was) and so you have been stopped out.  It happens sometimes, and especially when there is low liquidity such as through the night when the spreads are wide.  And of course, the same would be true on sell stops for the opposite direction if your candles were printed according to the ask price.

 

Hope this makes sense.  

And to add to this - beware when high impact news events etc are being released too, because the spreads can get stupid wide, and you might even be onside in profit by 10/20/30 pips, but then suddenly, the spreads widen like mad, you get stopped out for a loss, when according to the candles, the price looks as though it never even got back to your entry price. Just bear it in mind! That's why I stay away from news and get out of any positions before. This is the good thing about demo trading though... you find this stuff out when it doesn't count :)