1% Risk but a 6% loss.
Can somebody explain to me what just happened?
My guess is something to do with spread
Thanks
The move was to do with NZ reporting better than expected second quarter year-over-year GDP. This was listed on the dailyfx.com economic calendar and helpfully flagged as a High Importance news event. Taking a short-term trade ahead of and holding across this event was therefore not wrong by TA but certainly high risk by FA.
The loss was to do with not setting a stop-loss, surely?
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Had a 3 pip stop ($40)
Maybe price gapped across your stop level? This can happen, the firm I trade through say if a stop is missed, they will still close the position asap but it will now obviously be a bigger loss than planned for. These things happen. I don’t scalp.
That is my guess as well.
Seen it happen on opening and closing times AND when some big news drops.