Why Take profit didn't work?

Kamran Hosseini
37

As you can see in the picture. I've started a SELL position at 1.12954 in UERUSD chart. 

I set the TP to 1.12854(The red line below the green line). But as you can see the price got below the red line and the position didn't close.

I don't know why this happened because the difference between Bid and ASK in UERUSD is less than one pip but the price got more that one pip lower than the TP and the trade didn't close.

Can anyone explain why did this happen?

Basic Principles - Trading Operations - MetaTrader 5 Help
Basic Principles - Trading Operations - MetaTrader 5 Help
  • www.metatrader5.com
is an instruction given to a broker to buy or sell a financial instrument. There are two main types of orders: Market and Pending. In addition, there are special Take Profit and Stop Loss levels. is the commercial exchange (buying or selling) of a financial security. Buying is executed at the demand price (Ask), and Sell is performed at the...
Files:
Capture.PNG  13 kb
Marco vd Heijden
Moderator
13595

No price did not go below.

Press F8 and tab show then check the checkbox 'show ask price line'.

Kamran Hosseini
37
Kamran Hosseini  
Marco vd Heijden:

No price did not go below.

Press F8 and tab show then check the checkbox 'show ask price line'.

It's the same trade:

As you can see the price reaches near 1.2820 and so the ask price should be maximum at 1.2840 (the difference between bid and ask in EURUSD is less than one pip). So this chart shows that the ask price goes below 1.12854

Files:
Capture.PNG  18 kb
Kamran Hosseini
37
Kamran Hosseini  
Marco vd Heijden:
No it does not.

Can you explain why?

Marco vd Heijden
Moderator
13595
Kamran Hosseini:

Can you explain why?

Because the ask price is not visible on that tiny piece of a chart image.

William Roeder
25822
William Roeder  
Kamran Hosseini: ask price should be maximum at 1.2840 (the difference between bid and ask in EURUSD is less than one pip).
You buy at the Ask and sell at the Bid.
  1. Your buy order's TP/SL (or Sell Stop's/Sell Limit's entry) are triggered when the Bid / OrderClosePrice reaches it. Using the Ask±n, makes your SL shorter and your TP longer, by the spread. Don't you want the specified amount used in either direction?

  2. Your sell order's TP/SL (or Buy Stop's/Buy Limit's entry) will be triggered when the Ask / OrderClosePrice reaches it. To trigger at a specific Bid price, add the average spread.
              MODE_SPREAD (Paul) - MQL4 programming forum - Page 3 #25

  3. The charts show Bid prices only. Turn on the Ask line to see how big the spread is (Tools → Options (control+O) → charts → Show ask line.)
    Most brokers with variable spread widen considerably at end of day (5 PM ET) ± 30 minutes. My GBPJPY (OANDA) shows average spread = 26 points, but average maximum spread = 134.
[Deleted]  
Kamran Hosseini:

As you can see in the picture. I've started a SELL position at 1.12954 in UERUSD chart. 

I set the TP to 1.12854(The red line below the green line). But as you can see the price got below the red line and the position didn't close.

I don't know why this happened because the difference between Bid and ASK in UERUSD is less than one pip but the price got more that one pip lower than the TP and the trade didn't close.

Can anyone explain why did this happen?

It is frustrating. Isn't it?

The spread caused it. Maybe you might want to compare your broker's spread with other competitors, or use an ECN account with zero spread?

Kamran Hosseini
37
Kamran Hosseini  
Nelson Wanyama:

It is frustrating. Isn't it?

The spread caused it. Maybe you might want to compare your broker's spread with other competitors, or use an ECN account with zero spread?

what is ECN ACCOUNT?

Kamran Hosseini
37
Kamran Hosseini  
William Roeder:
You buy at the Ask and sell at the Bid.
  1. Your buy order's TP/SL (or Sell Stop's/Sell Limit's entry) are triggered when the Bid / OrderClosePrice reaches it. Using the Ask±n, makes your SL shorter and your TP longer, by the spread. Don't you want the specified amount used in either direction?

  2. Your sell order's TP/SL (or Buy Stop's/Buy Limit's entry) will be triggered when the Ask / OrderClosePrice reaches it. To trigger at a specific Bid price, add the average spread.
              MODE_SPREAD (Paul) - MQL4 programming forum - Page 3 #25

  3. The charts show Bid prices only. Turn on the Ask line to see how big the spread is (Tools → Options (control+O) → charts → Show ask line.)
    Most brokers with variable spread widen considerably at end of day (5 PM ET) ± 30 minutes. My GBPJPY (OANDA) shows average spread = 26 points, but average maximum spread = 134.

Thanks for you explanation.

I think the spread has changed during the time