Stop Level = 0

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Hi everyone, I hope you're well,

I have a demo account with a broker and I have a stop level of 0, is this normal? 

how do you interpret this? Where's the trick or the trap?  😉
stop level

Thank you in advance for your insights 
Best Reguards,
ZeroCafeine
 
Yes, this is normal in low or zero spread ECN brokers, the stop loss can be placed as close to the price as you want.
 
Eleni Anna Branou #:
Yes, this is normal in low or zero spread ECN brokers, the stop loss can be placed as close to the price as you want.
Tks you, what's mean ECN ?

I don't know why in my understanding, I thought that brokers had a minimum stop loss distance to protect themselves on the markets, it may be a stupid idea, but I had that in mind I don't know why.
 

Zero stop level may mean that the broker uses an external stop level management mechanism. In this case, the actual stop level is not zero, you just have no way of knowing this value.

If the stop level is zero, then either it is really zero, or it is just hidden.

 
ZeroCafeine #:  Tks you, what's mean ECN ? I don't know why in my understanding, I thought that brokers had a minimum stop loss distance to protect themselves on the markets, it may be a stupid idea, but I had that in mind I don't know why.

Yes, many dealing desk brokers may use a Stops Level and Freeze Levels for exactly that purpose.

However, many non-dealing desk brokers (e.g. ECN) may not use them and operate directly via their liquidity providers instead.

Please read the following ... Broker selection

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  • 2023.05.02
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MetaQuotes (MQ) is NOT a broker nor does it provide any financial, investment, brokerage, trading or data feed services, nor is it involved in any...
 
ZeroCafeine #:
Tks you, what's mean ECN ?

I don't know why in my understanding, I thought that brokers had a minimum stop loss distance to protect themselves on the markets, it may be a stupid idea, but I had that in mind I don't know why.

ECN brokers offer low spread or zero spread commission based trading accounts.

So, instead of having a larger spread, you have a fixed commission and a low or zero spread in every trade.

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