Today I have learned and interesting fact trading exotic currencies.
I was opening last night a LONG position for USD MXN at 21.3829 with a SL slightly below the support at 21.3412
I was surprised because seemingly my stop loss order was filled at a non existing quote.
Please notice that this is the ASK chart.
You can also notice that based on this chart my stop loss order was filled at a quote which do not exist. Which I did not understood at the first place, however if I switch graphs to BID chart it will be visible, like this:
So as a conclusion my SL has been correctly activated.
As a conclusion in case trading exotic currencies overnight you shall pay extra attention to the order parameters this should not have happened with me if I had submitted an order with:
1. Limit the order with ASK stop limit instead of BID limit (this would cost me more capital in case the price would move against me, since the SL order is actually filled at the BID price instead of the ASK but this would have prevented this case)
2. Which is the more straigthforward approach use a LARGER STOP.
I was opening last night a LONG position for USD MXN at 21.3829 with a SL slightly below the support at 21.3412
I was surprised because seemingly my stop loss order was filled at a non existing quote.
Please notice that this is the ASK chart.
You can also notice that based on this chart my stop loss order was filled at a quote which do not exist. Which I did not understood at the first place, however if I switch graphs to BID chart it will be visible, like this:
So as a conclusion my SL has been correctly activated.
As a conclusion in case trading exotic currencies overnight you shall pay extra attention to the order parameters this should not have happened with me if I had submitted an order with:
1. Limit the order with ASK stop limit instead of BID limit (this would cost me more capital in case the price would move against me, since the SL order is actually filled at the BID price instead of the ASK but this would have prevented this case)
2. Which is the more straigthforward approach use a LARGER STOP.
