Why did I get stopped out?

[JG46]

Yesterday evening at 20:30 (ish) I opened a sell on GBP/CHF with a stop at 11429. At about 22:02 (ish, again) the system closed the trade saying the price had reached 11429. But the chart shows that at no point around the 22:00 time did the price go anywhere near 11429. The nearest the price got to my stop was at 22:25 at 11425, well after the 22:02 closure.

Anyone got any idea what's happened?

[ryanair737]

I'm assuming that you are refering to 10pm UK time. At that time all of the major markets are closed and there will be a big increase in the size of the spread. Your chart is most likely showing the mid price. If you change it to the ask price, its up beside the time interval toggle. You will see that price did hit that level around that time. 

[KoketsoIG]

11 minutes ago, ryanair737 said:

I'm assuming that you are refering to 10pm UK time. At that time all of the major markets are closed and there will be a big increase in the size of the spread. Your chart is most likely showing the mid price. If you change it to the ask price, its up beside the time interval toggle. You will see that price did hit that level around that time. 

Dear @ryanair737,

Thank you for assisting  @JG46.

Thanks,

KoketsoIG

[ryanair737]

Hi KoketsolG

I have posted my own query also today regarding spreads but recieved no response. Can you please advise on my post.

Posted 51 minutes ago

I'm hoping someone can help me to understand what causes huge spikes in the spread and how best to trade and avoid being caught out in them. 

I've attached some screenshots of Wesfarmers LTD, a stock in the ASX. When you look at the ask price for 11am 04.12.2023 there is a massive spike in price however the bid price barely moves at all. This would have wiped out any short positions and possibly wiped out their entire account as it would have gapped past their stop and then been executed. 

There is no increase in volume and the market had already been open for one hour before the price change. There was also no earnings or other factors that I can find online which would explain the price move. 

Can anyone in the forum please help me to understand what the reason is for these type of fluctuations in the spread that only last a minute or so?

I've attached screenshots of the bid/ask price for the daily and the 5-minute range.

Thanks

[KoketsoIG]

2 hours ago, ryanair737 said:

Hi KoketsolG

I have posted my own query also today regarding spreads but recieved no response. Can you please advise on my post.

 

Posted 51 minutes ago

I'm hoping someone can help me to understand what causes huge spikes in the spread and how best to trade and avoid being caught out in them. 

I've attached some screenshots of Wesfarmers LTD, a stock in the ASX. When you look at the ask price for 11am 04.12.2023 there is a massive spike in price however the bid price barely moves at all. This would have wiped out any short positions and possibly wiped out their entire account as it would have gapped past their stop and then been executed. 

There is no increase in volume and the market had already been open for one hour before the price change. There was also no earnings or other factors that I can find online which would explain the price move. 

Can anyone in the forum please help me to understand what the reason is for these type of fluctuations in the spread that only last a minute or so?

I've attached screenshots of the bid/ask price for the daily and the 5-minute range.

Thanks

Dear @JG46,

Various factors can cause spikes and can be technical or related to corporate action events. Please submit any error in the chart and spikes to helpsdesk.uk@ig.com for fixing by the technical team.

Thanks,

KoketsoIG

[JG46]

Thanks for the clarifications folks. That actually explains a lot!!!!