Hi everyone, I'm new to forex trading. I had a buy stop in place for the Eur/Jpy pair. The order got filled at around 4pm pacific time. I use Mt4. I saw the dotted lines that showed my buy stop, the stop loss and take profit. For some reason my trade was opened and closed. MyFxBook shows a loss. Here's the problem: the EUR/Jpy price was no where near the buy stop. Can you please explain how my order got filled and then closed even though the chart doesn't show the price reaching my entry price? Thanks
This is quite typical if you trade spot forex. The market maker must be having a great time laughing hysterically after making a profit from you. I am sure you were analyzing the MT4 chart in great detail. Good luck. So trade those major currencies futures from the regulated Exchange.
.... probably because the spread between bid and ask was still extremely wide from the weekend, but you didn't realize that because your are looking at "average last price traded" in the chart. You need to see what the highest "average" price was when your Stopp loss hit, then add half (1/2 ) of what spread price was on top of that. MT4 also has the problem of being forced to choose between using Last bid price or last Ask price traded in your charts. You must have it set to show "Last Bid" price, so the Ask price was super high because of spread and hit your Stop. I personally try to never use MT4 charts and only use the platform if forced to. Use Oanda demo account charts for free or TradingView.
Thanks for the reply. I use Coinexx's demo account. I've been paper trading for about a month. I also use Trading View for alerts.
Sometimes you do not see the price on chart what was in the quotes from broker. So you can be triggered without seeing it on chart. Next possible explanation is spread widening, because on buy stop only ask price is relevant.