Important: Is it normal for broker to do this

Beginner Questions
1

I had place an entry on one of the currency.
It is as below:

entry:1.6000
Stoploss:1.6020

As i surf other website and come back a few minutes later.
My stoploss was trigger. Not a problem, but as i stroll my
mouse to that particular bar. The candle highest reach was
at 1.6018. So how could they trigger my stop.

Can the market make a spike up and then pull down. But nevertheless, the highest of the candle should be still at 1.6020 or above.

I think i need to get this straighten out.

Any one had this experience

2

When going short a currency, you are given the bid price (the lower price) but your trade then indicates the ask, (higher price).

Therefore what your chart shows is either the bid price, or with Oanda it is the average price., with a 3 pip spread the ask hit 1.0621.

Once you are in a trade going short only the ask price is relevent, in a trade long the bid price is the relevant one.

3

Yes, i already enter the trade for a short a 1.6000. With a stoploss of 20pips. Thus, the stoploss is at 1.6020.

However, the price after did not even reach 1.6020. The highest candle tail it shows is 1.6018. so how can my stop be trigger?

very puzzled

4

You are not accounting for the spread, which if you are short is the market price plus the spread.

So 1.0618 + spread is what triggered your stop loss

5

Interesting, I�m just learning about this and about spreads, good to know this

6

I just started trading, good tips for using the stop loss because I was just using it by feelings and according to some indicators. :frowning:

7

Your broker chart only shows the bid price, the lower price, not the price at which the highest point of the market price reached, therefore when going short in the market this fact needs to be taken into consideration.

It is a very newbie mistake, learn to see all aspects of your charting software.

8

Is the spread only factored in when you are shorting? Or, can being stopped out early happen when you go long?

9

Let’s get this straight you weren’t stopped out early, the ask price hit your stop loss, the broker platform only shows the bid price, hence the misconception that stop loss was triggered early.

What triggers a stop loss long? Bid price, so therefore when going long stop losses will always be hit graphically.

PS On Oanda’s platform which plots average price, the price can seem not to hit stop losses both ways, long & short.

Study your platform of choice & work out these factors.