Stops being closed by sudden price movements

[manwithbitcoin]

Hi

 

I had several stops that were way below current price.     The price dipped down in a few seconds my stops were closed and then the price went back up.

 

Can someone pls explain ?

[Guest PandaFace]

What market were you trading?

[Guest Razor]

Sounds like a stop hunt!

[Guest PandaFace]

Impossible. Pricing is the market the whole world trades on... you just execute otc as a derivative. Unless your trade was posted to the market and there’s algos out there going for themwhich I doubt.

 

If you tell us what market / time / price etc then someone will probs be able to help

[Guest EA-trader]

Big fish eat small fish, they wait in market, they now where small fish put stop..........tight stops???

[Guest Danthmann]

Hi there manwithbitcoin,

 

After many years of trading, all I can tell you is this. Although it seems as though the market is taking out your stops on purpose, it is all just basic movements which on many occasions seem to be basically just focussed on you.

 

I can guarantee that they are not.

 

The number of times I have had stops set which have been touched, just for the price to move in exactly the opposite way, are impossible to count. I am absolutely certain many others in the community have had periods of time where they felt exactly the same way.

 

The truth is that it is actually just a failure of our imperfect human mind. It is our tendency to dwell on and remember the 'unfair' and the 'failures', which until this point in time has helped us to survive. In trading you want to overcome this ingrained instinct.

 

Just remember, for every screw-up, ther will be 10 other opportunities. Look for them instead.

 

Cheers, Dan

[JamesIG]

Hi all. I just wanted to reiterate a point to follow on from  - when a stop is filled or a trade executed by IG, everyone else is also getting the same fill (if appropriate and the large size of consolidated client trades requires us to go to market with different orders) and the figure can be traced to the underlying market. 

 

For example, say you are in a Long position and another client is Short. You have you stop further down the market, and there is a sell off which causes your sell order to close to get triggered. Say hypothetically the other client has their take profit limit at the same level (when taking spread into consideration). Say also at these levels there are other buy orders from other clients. All of these would triggered. Your trade would realise it's loss, the short trader would realise his gain, and the clients looking to buy to open would all be filled (when taking spread into account).

 

The market then rebounds and moves up. Although this is frustrating for you it's important to remember 1) everyone was filled at the same prices when taking spread into account irrespective of the trade direct, 2) IG have no ideas what-so-ever on the direction which the market will take when we fill your trade. You have simply given us an instruction via an order, and we have executed it to the best of our ability basis the underlying market price and conditions at the time. There is no subjectivity in it.

 

If you would like a specific overview of the market price at that time, please get in contact via helpdesk@ig.com and someone will be able to provide evidence of this. You can also check out the Deal Execution Summary which is important to understand. Any questions, please add them below.