Thread: GAP?

I was taken out of this position EUR/CHF during the ECB rate decision and can not see on any of my charts or time frames that the pair passed my stop at the time of the trade being closed. This is my demo account so it is not a big deal but am woundering if this is going to happen on my real account also.

Slim

Hi Slim,

Great question!

Because you were in a long position, the closing price is going to be a sell (bid) price. Change your chart from "ask" price to "bid" price and you should see why you were stopped out. During big news releases, banks and liquidity providers widen out the spread to protect themselves from unknown market reactions. So if you are looking at the wrong side of the price on your chart, you could see what appears like strange results. This is what happened to your trade on your demo account. If this were a real trade on a real account, you would have also been stopped out due to the bid price hitting your stop.

Let me know if you have any further questions. Thanks and have a great day!

Rob
rob@fxcm.com

Originally Posted by Slim

I was taken out of this position EUR/CHF during the ECB rate decision and can not see on any of my charts or time frames that the pair passed my stop at the time of the trade being closed. This is my demo account so it is not a big deal but am woundering if this is going to happen on my real account also.

Slim

Understand what youare saying Rob however if you will look at my close it was at 1.20474 and ifyou look at the chart you will see that my pair never arrived at that lowaccording to the bars on the chart.

Slim

Originally Posted by Rob at FXCM

Hi Slim,

Great question!

Because you were in a long position, the closing price is going to be a sell (bid) price. Change your chart from "ask" price to "bid" price and you should see why you were stopped out. During big news releases, banks and liquidity providers widen out the spread to protect themselves from unknown market reactions. So if you are looking at the wrong side of the price on your chart, you could see what appears like strange results. This is what happened to your trade on your demo account. If this were a real trade on a real account, you would have also been stopped out due to the bid price hitting your stop.

Let me know if you have any further questions. Thanks and have a great day!

Rob
rob@fxcm.com

Hi Slim,

I am sorry I did not make myself clear. Change your chart from "Ask" price to "Bid" price by clicking the B on the top of the chart. Once you click the B, you will see the historical sell prices. See the image below.

You will see that your stop was indeed hit by the sell (bid) price.

Rob
rob@fxcm.com

Originally Posted by Slim

Understand what youare saying Rob however if you will look at my close it was at 1.20474 and ifyou look at the chart you will see that my pair never arrived at that lowaccording to the bars on the chart.

Slim

My bad Rob, now I am seeing what you are talking about.Thanks for your being patient with me. Sometimes I am not the sharpest pencilin the box.

Slim

No problem at all!

Originally Posted by Slim

My bad Rob, now I am seeing what you are talking about.Thanks for your being patient with me. Sometimes I am not the sharpest pencilin the box.

Slim

Grazie per la condivisione.