Very, very strange trade USDJPY

[StevenHi]

Hey,

I made a trade that was really very inexplicable and at a price that was not indicated at all. 

MT4 [redacted] RAW ECN trade: 

USD JPY GMT +00:00. 01.02.2024 15:00 (ISM Manufacturing PMI)

Pending Order Buy Stop Order at: 146.478 but executed at 146.975 BUT the candle had its high at 146.818 - how is that possible? 

Have an awesome day and thank you in advance. 

[Fernando Carreiro]

You need to do more research on basic trading principles ... There is something called "spread" ...

There is a Ask price and a Bid price. MT4 Charts only shows the bars/candles based on Bid prices.

• A "buy" position opens at the Ask price and closes at the Bid price (stop-loss, take-profit, partial close, etc.).
• A "sell" position opens at the Bid price and closes at the Ask price (stop-loss, take-profit, partial close, etc.).

Enable the Ask price line on your chart so that you can track the current value visually. 

Very high volatility can also cause spreads to widen drastically, and increase slippage, affecting how, and if, orders are filled.

[StevenHi]

Fernando Carreiro #:

You need to do more research on basic trading principles ... There is something called "spread" ...

There is a Ask price and a Bid price. MT4 Charts only shows the bars/candles based on Bid prices.

• A "buy" position opens at the Ask price and closes at the Bid price (stop-loss, take-profit, partial close, etc.).
• A "sell" position opens at the Bid price and closes at the Ask price (stop-loss, take-profit, partial close, etc.).

Enable the Ask price line on your chart so that you can track the current value visually. 

Very high volatility can also cause spreads to widen drastically, and increase slippage, affecting how, and if, orders are filled.

Thank you so much Fernando for your answer!

I understand that, but if I place a pending order at 146,478 with a slippage of 10, how can it be executed at 146,975? I thought that the slippage value in the pending order would prevent this? So that my order is executed at a maximum of 146.488. And not at about 50 pips above it.

[Fernando Carreiro]

StevenHi #: I understand that, but if I place a pending order at 146,478 with a slippage of 10, how can it be executed at 146,975? I thought that the slippage value in the pending order would prevent this? So that my order is executed at a maximum of 146.488. And not at about 50 pips above it.

The slippage or deviation limitation is only effective if your Execution Type on your account is "Instant Execution". It has no effect on "Market Execution" policy (which has nothing to do with market orders).

Given that you mention having a Raw ECN account, there should be no way it is using "Instant Execution" (which is usually only used by dealing desks).

So, for true ECN, the execution policy will always be "Market Execution" and the slippage/deviation limitation has no effect.

[StevenHi]

Fernando Carreiro #:

The slippage or deviation limitation is only effective if your Execution Type on your account is "Instant Execution". It has no effect on "Market Execution" policy (which has nothing to do with market orders).

Given that you mention having a Raw ECN account, there should be no way it is using "Instant Execution" (which is usually only used by dealing desks).

So, for true ECN, the execution policy will always be "Market Execution" and the slippage/deviation limitation has no effect.

Okay awesome, thank you! 

Is the something like an in Depth guide on Brokers / Account Type, the differences and perhaps also recommendations? (Not influenced by affiliates or anything else?)

[Fernando Carreiro]

StevenHi #:  Okay awesome, thank you! Is the something like an in Depth guide on Brokers / Account Type, the differences and perhaps also recommendations? (Not influenced by affiliates or anything else?)

There are many websites specialising in that sort of information. You will have to do your own research.

Broker discussions, recommendations or suggestions are not allowed on the forum — https://www.mql5.com/en/forum/446683