Why was i stopped out even though the candle didn't go anywhere near the SL?

[Guest GrandVision]

Hi, I placed a trade on EUR/JPY. As you can see in the image, my entry was around 12057. I placed the SL at 12049, and TP just under 12070.

 The price went nowhere near the SL area yet i was still stopped out? This is very concerning, it has also happened some times before but only when ranges were much smaller than this so i thought nothing of it.

What is the reason for this? Is it the spread? non-guarenteed stops? 

Very frustrating to be stopped out when price doesnt even seem to hit the SL. Even if i just got wicked i wouldn't mind, but this is a phantom stop out of nowhere. 😣

.

Edited November 28, 2019 by GrandVision

[Caseynotes]

11 hours ago, GrandVision said:

Hi, I placed a trade on EUR/JPY. As you can see in the image, my entry was around 12057. I placed the SL at 12049, and TP just under 12070.

 The price went nowhere near the SL area yet i was still stopped out? This is very concerning, it has also happened some times before but only when ranges were much smaller than this so i thought nothing of it.

What is the reason for this? Is it the spread? non-guarenteed stops? 

Very frustrating to be stopped out when price doesnt even seem to hit the SL. Even if i just got wicked i wouldn't mind, but this is a phantom stop out of nowhere. 😣

.

Hi, you don't give the times of the trade but if you were long then to exit you must sell back at the bid price, if you set the chart to Bid you can see price touched twice at 12049, at around 3pm and 10pm.

[Caseynotes]

1 hour ago, GrandVision said:

Thanks for the reply, that chart is way different to mine. I was stopped out in between your 2 blue arrows.

WTH? Is the chart update a simulator or something? Surely price is the same for everybody based off a server update? it should draw the candles based off the data that is at the server. Why is it drawing some random candles on each client? that seems wrong imo. I dont even know how it can be possible tbh. I could understand if it was a different sub market for the PAIR , but that is not the case here. Its all IG markets. Well i guess i should stick to very wide stop strategies in future to minimize the risk of this happening.

yes you're right, looking more closely toggling between Ask, Mid and Bid should change the levels but not the proportions of the candles, maybe @CharlotteIG can check with tech. It looks like the spread widened considerably leading up to 10pm Thursday as is reflected when price is set to Bid but not seen when price is set to Mid or Ask.

[Guest GrandVision]

8 hours ago, Caseynotes said:

yes you're right, looking more closely toggling between Ask, Mid and Bid should change the levels but not the proportions of the candles, maybe @CharlotteIG can check with tech. It looks like the spread widened considerably leading up to 10pm Thursday as is reflected when price is set to Bid but not seen when price is set to Mid or Ask.

Why does spread widen at that time of night? does it do it automatically based on trading volume/liq? 

It was thanksgiving so the US markets closed earlier; this may have caused the algo to widen the spreads more than usual.

 

[Caseynotes]

10 hours ago, GrandVision said:

Why does spread widen at that time of night? does it do it automatically based on trading volume/liq? 

It was thanksgiving so the US markets closed earlier; this may have caused the algo to widen the spreads more than usual.

 

This has come up before and no real satisfactory answer given as to why strange spikes and increased spreads occasionally occur around 9 - 10pm. Not being an IG employee I couldn't say for sure but my own suspicion is that at the close of the US market many main stream liquidity providers go offline and in order to keep providing prices IG need to access alternative liquidity streams providing less favourable prices causing a sudden widening of the spread.

[Guest GrandVision]

Thanks for the reply, that chart is way different to mine. I was stopped out in between your 2 blue arrows.

WTH? Is the chart update a simulator or something? Surely price is the same for everybody based off a server update? it should draw the candles based off the data that is at the server. Why is it drawing some random candles on each client? that seems wrong imo. I dont even know how it can be possible tbh. I could understand if it was a different sub market for the PAIR , but that is not the case here. Its all IG markets. Well i guess i should stick to very wide stop strategies in future to minimize the risk of this happening.