Short Sale - Stop Loss trigger early

Discussion in 'Order Execution' started by jgs1984, Jan 17, 2018.

  1. jgs1984


    I am new to this (so apologies if this is the wrong section but I did a quick search and couldn't find anything).

    I took a short sale position on NYT yesterday as I saw it overextended. As I am new to trading I didn't want to risk too much so I took a limit short at 20.20 with a stop loss at 20.35 and take profit at 19.90.

    As you can see my order was triggered at 20.20 but then to my surprise my broker (Charles Schwab) then took a buy order and closed my position at 20.2793 (well below my stop loss of 20.35). Looking at the chart NYT never went above 20.30 yesterday and in fact hit my profit target of 19.90 within the hour.

    Am I missing something completely obvious as to why this happened?

    Thank you in advance (and moderator if I have posted in wrong section I apologise)

    Screen Shot 2561-01-17 at 10.51.35.png
  2. Did you ask you broker about the issue?
  3. tomorton


    The spread is 3.35. If your short order triggered at 20.20, the other side of the spread would have been 23.55. How did their platform allow you to set a stop less than this, within the spread?

    Am I missing something simple?
  4. tomorton


    BTW, this is an incredibly wide (expensive) spread - 16%!

    I can spreadbet this share (I'm in the UK) at 19.8318-19.9144, spread of 0.08, 0.4%.

    What the heck's going on?
    matthewyoung likes this.
  5. truetype


    His screenshot is after hours. Bogus bid/ask.
  6. and the link is pink..
  7. jgs1984


    Sorry the screenshot is to represent what I input into the system (ignore the bid/ask) etc.

    What I’ve been led to believe is the stop loss will trigger even if a “quote” is present for the amount - the ticker does not actually have to trade at that price. Seems unfair but guess that’s the way it is?
  8. zdreg


    what time was your order executed?
  9. jgs1984


    Was executed relatively immediately

    The issue I have is my stop loss order was triggered below my target (I have been informed that’s because there was a quote present for that amount).

    This sounds wrong to me but that’s what I’ve been informed :(
  10. zdreg


    clock time? e.g. 14:23 est
    Last edited: Jan 17, 2018
    #10     Jan 17, 2018