I’ve been using an Investopedia demo for the past six months and it was going well, but in a very simplified way. As such i switched to forex.com’s demo platform account so i can understand things more. I’ve been placing orders and it’s generally been going well, save for one very confusing moment.
I placed a Buy order for 500,000 at 112.192. I placed a limit of 112.292 and a stop loss of 111.942. I then left it alone for an hour. I came back to find the order showing as in the images linked, with the order closed at a loss, but in such a way that it looks like a profit:
The image seems to have shown that while around at around the rate of 112.942, the stop loss has taken effect and closed the order at a loss (the platform doesn’t seem to show me the results of my order, but according to my efxnow report it looks like it’s a loss of around 20pips/£900). According to my Orders summary (also in the screenshot), the limit and stop loss were cancelled and a sell order was placed automatically.
So what happened? It looks like even if i were to close the order at the time it closed manually it would have been at a profit rather than a loss. It almost looks like the Stop loss saw a rate of 112.942, thought it said 111.942 and closed the order through a Stop loss by mistake by mistake (but i really hope that an automated system handling money isn’t doing that). I’m still very much a beginner so i get the feeling this is my misunderstanding. Thanks in advance.