Why was I stopped out or position closed here?

Beginner Questions
#1

Hello all,

I’m trying to trade a demo account for the first time, and I got in at a good point, placed my stop, and everything was fine. If you look at the attached image, I went short at the green line and placed my stop at the red line above the previous candle. The price action didn’t come close to my stop, and then as soon as the next 5 minute candle formed, which was gap down, my position was closed for the full amount, and I didn’t get the big move down I was waiting for.

Can anyone explain what happened? How was my stop hit when price didn’t go near it, or why was my position automatically instantly closed the moment the gap down occurred on the last candle. I’m very confused.

Any help is appreciated.

What happened? copy.jpg700×419 49.8 KB

#2

Seems like no one is sure due to the lack of replies. Is it maybe my data is incomplete and it really did hit my stop?

Is a position close something that can happen in this instance on a gap down or is that something that wouldn’t happen?

Thanks.

#3

Hey mate.

What a curious thing to happen… I had this kind of problem when I was trading CFD’s with unregulated brokers. I wonder if you broker is regulated? MY theory on what has happened is if your broker is not regulated they simply hit the “widen the spread” button which took you out of your trade before the trade went your way. If you do have a regulated broker then I haven’t a clue as to what happened maybe you should ask your broker to explain it. I am eager to hear their response.

Cheers,

Mark

#4

Hi Mark,

It was a demo account I’m using with Oanda. If that helps any.

Thanks.

#5

[QUOTE=tehmac;719207]Hi Mark,

It was a demo account I’m using with Oanda. If that helps any.

Thanks.[/Q]

They are regulated so I doubt it is them doing the dodgy and it’s a demo account so they have no reason to do that anyway. I’d hit them up and ask them what the deal is.

#6

What made you take that trade in the first place? …just curious

#7

Hello,

Looking at my charts on fxpro for the same time period the wick above your green candle went suspiciously close to your stoploss. I suspect the spread from your broker touched the SL price.

Did you enter before this green candle had opened?.

What was the spread when you entered?.

In my opinion your stoploss is too tight as you’re viewing this on a 5min chart.

Difficult to say based on the info given.

Cheers.

Shy.

#8

Contact your broker and explain the situation.
Oanda are pretty good, so this issue is hard to pinpoint.

Shyfx is probably right, and on a 5 min chart, I’d also agree that the S/L is too tight.

#9

Hey man, this might be due to the slippage or sudden widening of spreads during volatile market moves. I’ve seen this happen on my account a few times before, especially when there’s a huge news event and my stop is very close to the current price. But yeah, I do agree with what the other folks right here said, try contacting your broker to verify so that you’re prepared to make the necessary adjustments next time.

#10

As far as i can see it is due to Slippage, which means that there were not enough orders to be filled at the right prices at that instant :slight_smile:

#11

anytime someone has the type of problem you have, 99% of the time its because you are looking at the wrong chart.

There is a bid price, and an ask price.

When you sell you want to look at an ask chart, when you buy you want to look at a bid chart.

#12

This morning I was stopped out of a trade, and I am not 100% sure why. I’m maybe 80% sure why.

why_stopped_out2.jpg700×568 71 KB

My S / L was 109.140, as you can see in the image.

I dragged USDJPY onto the chart so you can see the lines where MT4 says I got stopped out.

I went to the M1 chart just for granularity of the screen shot. I don’t typically trade M1 time frame.

Hovering over the left caret icon, it says “#136307013 sell 0.10 USDJPY at 108.899 close at 109.140.”

Hovering over the bar right under the left caret icon, it gives a High of 109.129.

I’m seeing a different of 1.1 pips. By my calculations, that’s only $1.03 USD, so . . . nothing to sneeze over.

But I am trying to learn.

So . . .

Is the reason I stopped out because the “Ask” price hit the 109.140 price? I don’t typically show the Ask price on my charts because I typically trade D1 time frame. My broker’s site says the spreads for USDJPY are min = 0.6 and average = 1.5 pips. That would certainly account for the 1.1 pips I am seeing.

#13

Yes the ask price had hit your sl

#14

It is very simple … the trade you did was closed as the stop loss got triggered :slight_smile: