Stop loss liquidated 1.8 pips earlier than I had set my stop loss.

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Hello.I had a stop loss set. I was liquidated 1.8 pips earlier than I had set my stop loss.

As you can see from the pictures:

I had SL set at 157.455

I was thrown out at 157.448

The market was at 157.437 at that moment

My broker said: Hi Mitja,   We hope you are doing well.   We have completed a thorough review of your issue, findings as below.   Your trade 62288757 has been reviewed and it was executed properly. Your stop loss was triggered and executed at the next best price,due to a fast move in the market.   Kindly note that Stop Loss, Take Profit and Pending Orders are not guaranteed orders.    The price at which the order will be executed is also not guaranteed.    Market orders are executed at the best available price at that point in time and according to market conditions   To confirm, buy orders (Stop Loss for Sell trades) are executed at the ask price which is not shown on the candlestick chart. Candlesticks are constructed based on the bid price (the price at which you sell at).   We hope that clarifies.   Kind regards,   Trade Audit Committee

 
Mitja Kebe: To confirm, buy orders (Stop Loss for Sell trades) are executed at the ask price which is not shown on the candlestick chart. Candlesticks are constructed based on the bid price (the price at which you sell at).  

The broker's answer is correct. They explained it to you, yet you did not understand it.

You should learn the basics of trading before you even think about trading with real money. Taking on a prop-firm challenge without even understanding that is just wasting money.


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error : automatic closing of sell position in loss instead of profit

Fernando Carreiro, 2025.01.15 04:44

It's called "spread"!

There is a Ask price and a Bid price. Charts only shows the bars/candles based on Bid (or Last) prices.

  • A "buy" position opens at the Ask price and closes at the Bid price.
  • A "sell" position opens at the Bid price and closes at the Ask price.
Enable the Ask price line on your chart so that you can track the current value visually.
 
I understand, but the difference of 1.8 pips seems too much to me.
 
Mitja Kebe #:
I understand, but the difference of 1.8 pips seems too much to me.

Spread and slippage increase significally during high impact news and times of high volatility, 1.8 pips is not much, it could have been much worse.

 
Mitja Kebe #: I understand, but the difference of 1.8 pips seems too much to me.

There is nothing strange about that.

I have checked with two of my brokers and a prop-firm I use, and in all three cases, during that time, the spread easily reached 6 pips or more.

When there is high volatility or low liquidity, the spread can easily widen.

 
Thanks for the explanation guys.
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