I am very curious about how spread is applied when a stop or limit order is modified.
For example, if a buy stop is opened at time A. At time A, the market spread was 2 pips. Then the buy stop was modified at time B (say 5 minutes later from time A). At time B market spread was 3 pips.
When the buy stop finally become market order at time C. At time C, the spread was 4 pips and let's say time C is 10 minutes latter than time B.
Finally will this buy stop order will be executed as the market order with spread of 2 pips at time A or spread of 3 pips at time B or spread of 4 pips at time C ?
Which spread will be applied when this buy stop order become market buy position ?
Absolutely no discussion about this on website. It is interesting I guess to know.
Really appreciated if you could share your knowledge. :)
I see. So there is no point of worrying about spread when we send Buy stop order.
If that is the case, then buy stop or other pending order does not have any choice or control over spread.
Because once the buy stop order is sent to broker, broker will just apply the current market spread when the buy stop order become buy position.
Mm, this is interesting fact because many traders seems to think that pending or stop orders are cleaner ways of entering the market.
You are never guaranteed (* see below) that the price you see when you click the button (or the price your EA sees when it sends an order) is the actual price your order will be filled at, be it buy/sell or open/close. In the time it takes to execute, the price may have moved. Especially during volatile times such as news events, the difference can be significant.
The only exception to this is if you set the slippage value when you place an order (and your broker doesn't use instant/market execution). In that case, if the price is greater/lesser than the point value you stipulate, your order will not be filled. Of course, that can lead to it's own set of problems....
I beleive stop limit order is only available in Meta Trader 5 terminal .
Can we send stop limit order in Meta Trader 4 ??
Thanks for clarification.
Slippage is another evil that trader should watch out. If we can cotroll it then it is better.
I feel like that I am experiencing slippage issue a lot less lately comparing to few years ago.
Does slippage still notably obserbable ?