Recently i placed a trade and a gap happened, this was mid week (wed). The gap took the price beyond my stop loss. fortunately i was still monitoring the trade and i tried to close the trade however the platform i was using crashed. It would not let me move my stoploss and would not let me exit my trade. Price then returned to my stoploss and then exited the trade. However what would have happened should i not have been around. what would have happened should price have continued away from my stop loss. I could have been looking at a huge loss instead of a small loss. Does blame lay with my broker or is this something as traders we just have to put up with?
Its on you, usually. Gaps happen, spreads widen and too many requests can overwhelm the server. Your user agreement covers this somewhere in the hundred or so paragraphs. Don’t trade near major news and you can avoid most of these occurrences. Of course if a country’s bank decides to intervene…you are on the hook.
Trading Gaps happen on weekends when the markets are closed on Friday and reopen on Monday morning. Now any stop loss will not guarantee Gaps as the time markets are closed no deals are executed.
So when they open your order will be executed at current market rates
it almost seems that as a broker you can do almost anything you want and get away with it. As a retail trader you have no rights what so ever.
Stop losses that dont do what they say they do and software that doesnt work. We even have governments that embezzle your account. No wonder 90% of traders fail. They havent got a chance.
so if i cant close or modify a position and the risk of the software failing is mine. Then i really only have the negative account protection on my account as a real stop loss. This really all adds up to me not keeping a large account with a broker in the case that their software fails.
Agree with CodeMeister, we cant blame the broker when slippage happen. Example for price goin down like this:
10-9-8-7-[B]6-5[/B]-4-3-2-1
If our entry at 9 and SL at 5 (long position), the SL will hit.
But in Slippage condition, price just jump in and not movin gradually. Price movin like this:
10-9-8-[B]7-1[/B]
So, if our entry same at 9 and SL at 5, we will get stopped at 1, instead 5.
and due to that, our risk become double than usual. If the risk 5%, it would be around 10%.
Conclusion:
We cant blame broker due to that condition coz they already explain clearly (just like CodeMeister said before)
Always keep risk below 1%, so if slippage happen, the impact still in our control
Experience is the best mentor we have, so learn from that
I agree with spidypips. Those are good points. Stops are not guaranteed and slippage can happen. It happened to me a few weeks ago when price reached my take-profit but didn’t trigger for 5 minutes during Monday’s open. I was about ready to punch the monitor since price was whipsawing madly.
Market gap is one thing that traders should bear with regardless of which brokers they use. However, when you said the price went beyond your stop loss, the trade should have been closed by then, meaning that your trade should have been exited at the gap price. This may have something to do with your broker system. But in this case, you’re at the advantage because your loss is still within your predetermined risk.
