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Why was I stopped out?

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mjolewis
8
mjolewis  

I set my stop on the EURUSD to 1.12373 and I was stopped out on a high of 1.12371. I have attached images to show this. If you look at the high on the candlestick I was stopped out on, it shows 1.12371.

Files:
Stopped_Out.png 138 kb
Alain Verleyen
Moderator
31183
Alain Verleyen  
mjolewis:

I set my stop on the EURUSD to 1.12373 and I was stopped out on a high of 1.12371. I have attached images to show this. If you look at the high on the candlestick I was stopped out on, it shows 1.12371.

A sell trade is closed at Ask price, chart and OHLC price are Bid prices.
cozyman
242
cozyman  
Alain Verleyen:
A sell trade is closed at Ask price, chart and OHLC price are Bid prices.

it is becaouse of the spread, the charts in mt4 / mt5 is based on the bid price,

when you sell, you must buy on the ask price to get out of the position, 

so your SL is filled at the ask if you sell,

the ask price is a bit higher than the chart shows,

because of the chart being based on the bid price. 

and also if you would have a buy position in the market,

then you must sell it to get rid of it,

you always sell on the bid,

so in this case, the chart will reprecent price more visually,

in mt4 / mt5, you can by right clicking on the chart, in settings,

you can add an ask line to the charts, this will better help you see it visually.

we always buy at ask and sell at bid, and the difference is the spread,

that is just how it works. 

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