Stoploss problem bids and offers

[JacobusF]

I had trouble with my stop loss today. The rate didn't reach my stop loss, but it was still triggered. My broker informed me that this is because the offers (which aren't visible on the screen) did reach the set rate.

Is this usual? How to deal with this problem? how many pips is the divergence between bids and offers usualy?

Thanks for answering!

 

[Ricex]

Hi,
it's a common mistake, I've made it myself, forgetting to add the spread to your SL.

It will depend on your platform but on MT4 for example you can have the ask line visible. If you have a platform without this facility, just remember to make a note of the spread at the time of placing your trade, then add the number of pips to your SL.

The difference between the bid and ask price differs with every currency pair and broker.
Normally the more exotic the pair the greater the spread, euro/$ has spreads from 0.5pip to 2pips, Gbp/aud is a juicy 7- 10pips it depends on many things.

Good luck

 

[JacobusF]

Thanks! So this has nothing to do with the stop loss hunting you sometimes hear about?

 

[Pharaoh]

That depends. How close was the bid price to your SL?

Sometimes brokers will expand the spread around news time. Sometimes, they'll expand it just to kiss your stoploss. Check your charts against a couple of other brokers to see if they spiked you. Also, turn on that ask like (or bring up an ask chart in some platforms) to watch for spread manipulation.

 

[Doug Reo-Cocker]

Thanks! So this has nothing to do with the stop loss hunting you sometimes hear about?

Yeah, it can be a case of stop loss hunting, nevertheless is very difficult to know. What's your broker?? is it regulated by a national agency? , if not it probably was a sl hunting manuever.