i have a problem with the execution of a sell pending order, cause maybe there exists some missunderstanding:
on 22. november around 13:00hrs i set a stop sell pending order at the norwegian index25,at 1084 when he was swimming slightly above 1084 (more just for fun cause of the tiny minimum position request) in combination with a take profit at 1078.
The asumption was clear - should the index start to tank, the sell order is triggered at 1084, and later on should be closed in profit at 1078 .
What happened? At exactly 14:20:4 the index shot down in a second to 1068, and at that point my sell order was triggered, cause my broker said, that in that second-spike it was too fast to trigger the order at 1084 and the first available price was 1068.
OK, that can happen. But what i dont understand, is that my take profit order was not triggered also immediatly cause the price also passed the take profit limit. Its clear, there is no profit, cause the price is too low, but shouldnt have the position been closed at all immediatly at zero profit or zero loss after the position was opened far below my pending price and tp?
On the contrary the sell order was open, and as you see on the chart seconds later the index started to rise, and 13 seconds later at 14:20:17 the position was margin stopped out in loss at 1084…thats a little bit strange to me…
a sell stoporder is executed at the first available price (thats correct)- as my sell stop price was 1084, and in a second the price fell from 1084, 55 to 1068, the sell stop order was ecexcuted at the first available price, and that was 1068…
-on my question concerning the order closing cause of take profit was also passed, no clear answer
My asumption was right, that in general such an order, that is executed far below the stopp and take profit benchmark, should have been closed immediatly after the order was opened.
A clever customer client (finaly i found one), explained that it is a question of the spread, that is not visible on the chart-in that down spike bid-ask distance widened so much, that when the sell order was opened the ask price was still above the take profit. Thats the reason, why the order was not closed immediatly after the opening
and why the order was open when price spiked back up again.
During such crazy moments anything can happen but well yes this is really weird, clearly there are available prices above your TP so it should be triggered. I guess this is the case that needs investigation from the broker side.
