Hey guys! I have been trading the last 5 days and have made great progress. The only thing is. I just did a sell purchase at 90.77 and i left it for a while and then came back and it auto bought at 90.89 and then resold the damn lot at 90.89. I never gave the order but it has happened before. Did i miss something about this? How is it that this auto sell and buy can occur? What is causing this. and now ill probably have to sell immediately when they forex opens Sunday, to keep from anymore of a loss.
It sounds like you haven’t learned how to place your orders with your broker yet. If they offer a demo account, I would advise you to use it until you get the hang of it (no more “surprises”).
As for what happened here, it sounds like your stop-loss was hit. So you sold at 90.77 and your stop was hit at 90.89. I don’t know how you re-entered at the same price but there must have been a pending order.
Regardless, demo trade for a while and you’ll have the answers to your own questions.
Good luck!
Thanks for the reply. I never set up a stop loss order. I did a buy at the market price and that was it. I came back and noticed it sold itself and re-bought at a new price of 90.91.
You might take this issue up with your broker as they would have the actual record of what happened. From you’re saying, it could also be that you experienced a bit of slippage, where you placed a market order at a certain price, but that price was never hit and you got the best price instead. But again, it’s hard to tell what happened without having all the info.
I don’t think that your computer is entering and exiting trades on its own with no input from you. Demo trading for a while would allow you to make these mistakes without paying the price.
Thanks a lot man. I really appreciate it.
You don’t have an EA running and making trades without realizing it do you?
You’re welcome.
I’m surprised no one thought to ask what time of day this happened at. It sounds to me like it was a daily rollover.
rhodytrader,
This occurred at 4 o clock pm friday afternoon. Right before the market closed. I sold at 90.77 was up 20 pip profit. Then it resold at 90.89 ? Was that the cause of this? A time rollover?
Central U.S Time
Hello,
goldages05:
May we ask which at which broker and on which trading platform this occurred?
Here is a link to the SEC which explains very nicely the different types of orders and how they are executed:
Here is a link to the (entire) thread that I started on the same subject:
http://forums.babypips.com/newbie-island/18293-stops-slippage-brokers-everything-else-confuse.html
John:
You’re right of course i.e. I’d not have thought about asking the time of day that this happened nor would I have suspected that it was due to a rollover. That said: I don’t recall details of a rollover being sent to me where the rollover was a totally seperate transaction i.e. a ‘physical’ closing and reopening of a position that is being rolled over EXCEPT of course in the case of a futures contract. Am I missing something here?
There are some brokers that force the placement of a stop loss order when a position is opened i.e. you cannot trade without a stop loss at these types of brokers (although it would appear to be limited to brokers that offer spreadbetting and I suspect it has something to do with the laws governing spreadbetting). You have to be careful when trading with these types of brokers because if you don’t know about this you’ll quickly find out that the automatic stop loss order is placed so close to the opening price of your position that you will get stopped out for sure unless you immediately modify the stop loss order after opening the position. (Although this would NOT explain why, in this case, the position was ‘physically’ reopened). Who knows: maybe just a mistake by the broker (it does happen and the ‘trick’ is to find an honest broker that will correct their mistakes without you having to ‘throw a wobbly’)!!! LOL!!!
Regards,
Dale.
Spot market rollover is exactly that - closing one position prior to the end of the day and opening a new one at the start of the next. It’s done to avoid having to actually deliver in 2 days. Some brokers just either don’t do it or make it more invisible.
Sounds like rollover is exactly what happened.
I’ve obviously just never been ‘shown’ the individual rollover transactions.
This does ‘beg’ another question though:
What about the spread??? I know when a Crude Oil position (or any other futures contract for that matter) gets ‘automatically’ rolled over I pay the spread on the newly opened position but I cannot say I’ve ever noticed this on a forex pair???
Regards,
Dale.
I definitely have.