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.
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.
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.
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.
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.
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.
