Stop Loss Hit on IC Markets Due to Huge Spread at Market Open – Is This Normal?

Broker Discussion
1

Hey traders,

I recently had a strange issue with IC Markets, and I’m not sure if this is something normal or if I should be concerned. I wanted to share my experience and see if anyone else has had similar problems.

What Happened?

I had a short position on EURGBP with a stop loss set at 0.84305. However, my stop loss got triggered at market open, even though the price on the chart never reached that level. Price reached 0.84150 at market open this Monday.

I contacted IC Markets, and they told me that:

  • My stop loss was hit because of the Ask price, which is not visible on the chart ‘of course’.
  • The Bid price never reached my SL, but the Ask price spiked due to a huge spread.
  • The spread widened to nearly 16 pips at market open, which caused my stop loss to be triggered.

My Concerns & Questions

  1. Is a 16-pip spread at market open normal for IC Markets? This seems excessive to me.
  2. Can I trust my stop losses with them in the future? If spreads can randomly widen this much, does that mean stop losses are unreliable?
  3. Have other traders experienced something similar? Is this a common issue with IC Markets or other brokers?

I would love to hear from others who have traded with IC Markets or experienced similar stop-loss issues. Let’s discuss!

2

A 16-pip spread at market open for the week would not be unique to IC Markets. Their spreads could easily reach that level at other times too, such as the NY Close each night, or around news announcements.

It’s a tough one. You could remove stop-losses temporarily around volatile periods - that carries risk. You could set stop-losses temporarily further away and then pull them back when volatility reduces. You need to consider whether you’re trying to set your stops too tight.

3 Likes
3

It really does sound as if you might be?

4

Thank you for your answer Tommor , I will probably consider to remove my Stop Loss before the Weekend or set a wider Stop Loss to avoid being stop out of my position.

5

yea its normal. did you learn your lesson?

6

You could even just watch the chartsore live or go back in time to see what your pair did at market open of similar days (market events, data releases, what else impacted the markets).

That might help you figure out what happens spread wise around that time.

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