Error while setting stop loss!

Beginner Questions
1

Dear Sirs/Mdms,

I always get this error when I try to create a stop loss for my account (thinkorswim if anyone uses this). Let me explain it in a made up scenario below…

I shorted EUR/USD at price 1.39556, and lets say I want to exit with a maximum 50 pip loss (1.39506).

So I go ahead and open my order menu and create a limit order to buy back EUR/USD at the price 1.39506, hoping that when the price reaches that price I will get out of my trade. However, when i submitted the order, It was rejected and thus I am now clueless on how I should create my stop loss.

Any help would be greatly appreciated! =)

Many thanks and may your trades be profitable!

Kenny

2

Yo don’t set a stop by putting in an opposing trade, that is hedging (you hold both positions). There will be an option (don’t use your platform so can’t tell you where) to specifically set a stop loss.

3

Hi, thanks for your reply!

Hmm, no wonder I get an error message stating the price is too far out. I’ll look out for the option in my platform.

Thanks!

Kenny

4

I know what’s wrong… You are setting a 5 pip stop loss, and not a 50 pip stop loss. Some brokers don’t allow stop loss points set that near. You have to manually close if your stop is that near.

1 pip is 0.0001, 1 pipette is 0.00001 for EUR/USD

There’s nothing wrong with how you place put your stop (putting a reverse limit order).

Check this link: Pips and Pipettes | How Do You Trade Forex? | Learn Forex Trading for the proper definition of these things.

EDIT: Btw, not all platforms have a “stop loss” setting. There are some platforms that you have to manually set a “One-cancels-the-other (OCO)” orders to set profit targets and stop loss points.