Pending Order Triggered Prematuredly

Broker Discussion Forex Brokers
1

Hello,

I am new to trading and I need some help and hope someone can help me.
I opened a EURJPY pending order (Buy Stop) at 137.17 but my broker opened the trade at 137.14. I queried this with the broker and the explanation I received was about the spread.

If the broker opened the trade legitimately, can someone explain the following to me?

  1. Is this standard practice with all brokers
  2. Are there account types that do not operate in this manner
  3. Should the MT4 not display accurate prices? The candle on my MT4 shows a HIGH of 137.15

Thank you

2
  1. yes, of course.
  2. Some brokers charge a flat commission - in and out. Not sure, but I believe this can be more expensive unless
    you trade high volumes. Paying the spread always made more sense to me.
  3. Nothing wrong with platform. Keep in mind that MT4 displays the bid price by default.
3

As stated, MT4 displays the bid price by default. This means that whatever you see on MT4 is bid price. Hence, you placed an order at 137.17 thinking that the price has to reach that level for your buy stop to trigger. Now, you are amazed as to why the order was triggered when MT4 only shows price reaching 137.15 (thinking that your buy order should never have been triggered).

However, please note that you may not be considering the spread at that time. Suppose if EUR/JPY spread was 3 pips at the time, then price on MT4 will show the bid at 137.15. Actually, the asking price did reach 137.18 (137.15 + 3 spread) triggering your buy order.

4

Thank you both for your responses; I am very grateful.

I understand it much better now.

5

At a first glance, seeing that you put a buy stop order at one price and entered at lower price, looks like you experienced positive slippage if I understood your post correctly…