FXCM and there stop losses

Inkology

Newbie
2 0
Hi I am new, I checked few pages of FX part of forum but didnt find answer for my question.

I want to know how is this posible???




I had stop loss about 99.871 my trade closed at 99.933 and HIGH of column was only 99.917. I understand that you have in this kind of situation bigger loss then stop loss but dont understand how I have bigger lose that is HIGH of price ????? Why I have 2pip bigger lose???
 

Shakone

Senior member
2,458 665
By any chance are you looking at a midprice chart? i.e. it displays the midprice between bid and ask.
 

wackypete2

Legendary member
10,229 2,054
It doesn't have to be the mid price. He was short. He got filled on the offer which is about 2 pips over the high bid price on the chart. Noting the time of the post he was probably trying to trade through NFP too and he got stopped out just a pip or so over the last swing high, right before the drop. same 'ole , same 'ole


Peter
 

ndnole

Active member
238 3
It doesn't have to be the mid price. He was short. He got filled on the offer which is about 2 pips over the high bid price on the chart. Noting the time of the post he was probably trying to trade through NFP too and he got stopped out just a pip or so over the last swing high, right before the drop. same 'ole , same 'ole


Peter

Pretty much
 

Jason Rogers

Senior member
2,768 92
Hi I am new, I checked few pages of FX part of forum but didnt find answer for my question.

I want to know how is this posible???




I had stop loss about 99.871 my trade closed at 99.933 and HIGH of column was only 99.917. I understand that you have in this kind of situation bigger loss then stop loss but dont understand how I have bigger lose that is HIGH of price ????? Why I have 2pip bigger lose???

Hi Inkology,

Welcome to the forum :)

As the others have mentioned, when you are looking at the charts, it's important to note that by default, they will show you the bid price (AKA the sell price) in the market. However, when you have a short position, it is the ask price (AKA the buy price) that will determine when your stop is triggered and where it can be filled. You can view the ask price on Trading Station charts by clicking on the "A" button in the toolbar.


Below is a screenshot of the tick chart at the time in question, where you can see the bid price and the ask price simultaneously.



  • Solid blue line = bid price
  • Solid purple line = ask price
  • Dashed yellow lines = point when stop was triggered
  • Dashed blue line = highest bid price reached
  • Dashed purple line = ask price where stop was filled


As you can see from the image above, your stop order triggered at 08:30:00 during the NFP announcement and was filled within the same second at a price of 99.933 which did appear on chart of the ask price. In fact the ask price continued a bit higher and at 8:30:01 traded as high as 99.957 before dropping back down.

During news events like NFP, the market can be more volatile. For this reason, many news traders prefer not to set stop orders close to the current market price and instead rely solely on market orders to enter and exit positions.

Jason
 
Last edited:

Babyblush

Active member
132 4
The slippage is very much common during the major news release and some brokers even have 20-30 pips slippage so yours is just 2-5 pips means be happy.
 

Purple Brain

Experienced member
1,613 179
The slippage is very much common during the major news release and some brokers even have 20-30 pips slippage so yours is just 2-5 pips means be happy.

As I understand it, this isn't technically slippage. Slippage is where you place a limit order and it gets filled at a significantly different level. Market orders can therefore never be subject to slippage, only limit orders.

The spread isn't slippage - it's the cost of doing business on any pair at any given time. As others have said, trading during high volatility times such as NFP will expose you to you paying over the odds for your trades.

I convinced myself just before last Friday's NFP that my prior strategy of staying in a trade I was already in through high volatility news events was a 50/50 proposition which was far below my normal trading performance and therefore, not worth staying in for. When you consider the price is as likely to go against you as for you AND add on the brokers free lunch of 30 pip spread, the resultant probability does not favour keeping an existing trade open.

Certainly if you're trading longer timeframes and a 30 pip spread isn't going to go anywhere near your normal stop size then hold your course, but for most intraday retail players, that 30 pip represents a significant lump.
 

Jason Rogers

Senior member
2,768 92
As I understand it, this isn't technically slippage. Slippage is where you place a limit order and it gets filled at a significantly different level. Market orders can therefore never be subject to slippage, only limit orders.

The spread isn't slippage - it's the cost of doing business on any pair at any given time. As others have said, trading during high volatility times such as NFP will expose you to you paying over the odds for your trades.

I convinced myself just before last Friday's NFP that my prior strategy of staying in a trade I was already in through high volatility news events was a 50/50 proposition which was far below my normal trading performance and therefore, not worth staying in for. When you consider the price is as likely to go against you as for you AND add on the brokers free lunch of 30 pip spread, the resultant probability does not favour keeping an existing trade open.

Certainly if you're trading longer timeframes and a 30 pip spread isn't going to go anywhere near your normal stop size then hold your course, but for most intraday retail players, that 30 pip represents a significant lump.

To clarify, slippage is when an order is filled at a different price than what was originally specified. Slippage can occur with market orders or limit orders. It's just that on market orders slippage can be positive or negative, but with limit orders slippage can only be positive.

Negative slippage is when your order is filled at a worse price than you specified. For example, you had a stop order to sell EUR/USD at 1.3260, but it gets filled at 1.3256. Positive slippage is when your order is filled at a better price than you specified. For example, you may have placed an order to buy EUR/USD 1.3260, but it gets filled at 1.3256. Positive slippage is also known as a price improvement.


As you can see from the data above, price improvements occur just as frequently as negative slippage on FXCM's platform. It's just that you're more likely to experience price improvements with limit orders and more likely to experience negative slippage with stop orders due to the momentum of price movement when these order types are triggered.

On the Trading Station platform, you can specify how much negative slippage you are willing to tolerate on a market order. For example, when trading with market orders, you can set the order type to "market range" on the platform to avoid potentially receiving negative slippage. A market range order type allows you to control the amount of slippage your order can receive when it executes allowing for price certainty (see image below).


A market range of "X" pips assures that all or part of your order will be filled within a "X" pip range of the current market price ("X" pips above or "X" pips below) if liquidity is available.
 
 
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