Order types - page 2

[Thomas110]

Fernando Carreiro #:

Please remember that the Chart only shows Bid prices, not Ask prices, and the trigger only happens when the "Ask" price is valid for the order (it is a "Buy" order). It also depends on filling mode and available liquidity.

PS! Enable the Ask price line on the chart for the current ask price. Candles however, will continue to only be based on Bid prices.

After some readings it seems that it actually depends on the type of instrument: 'one-minute bars are based on bid prices for OTC symbols, and are based on last prices for exchange instruments'

https://www.metatrader5.com/en/terminal/help/trading_advanced/price_data

Regarding the bid prices convention (OTC symbols) for most trading platforms I understand there are historical reasons (incl. data storage). Though, according to me:

- it would make much more sense to have real time prices and candles based on the last (realized) prices; with the possibility of displaying both the bid and ask lines on top

- it might depend on the broker; from another post on the forum: in the case of data feeds from 'a market maker with fixed spreads', the bid and ask would never intersect in that case

- that convention gives an unfair advantage to certain operations, e.g. opening a short at bid price, if the last candle price reflects the bid price, or similarly for closing a buy position.

Let me know if you see another point. Anyway, I know understand the reason why a pending/limit buy order couldn't be executed; thanks for having shown the way.

[Fernando Carreiro]

Thomas110 #:

After some readings it seems that it actually depends on the type of instrument: 'one-minute bars are based on bid prices for OTC symbols, and are based on last prices for exchange instruments'

https://www.metatrader5.com/en/terminal/help/trading_advanced/price_data

Regarding the bid prices convention (OTC symbols) for most trading platforms I understand there are historical reasons (incl. data storage). Though, according to me:

- it would make so much more sense to have real time prices and candles based on the last (realized) prices; with the possibility to display both the bid and ask lines on top

- it might depend on the broker; from another post on the forum: in the case of data feeds from 'a market maker with fixed spreads', the bid and ask would never intersect in that case

- that convention gives an unfair advantage to certain operations, e.g. opening a short at bid price, if the last candle price is supposed to reflect a bid price, or similarly for closing a buy position.

Let me know if you see another point. Anyway, I know understand the reason why a pending/limit buy order couldn't be executed; thanks for having shown the way.

Yes, some symbols with central Exchanges like Futures for example, use "last" price and not "bid" price for Charts. I forgot to mention that in the previous post.

You can check which prices are being used, "Bid" or "Last", in the contract specifications (Symbol specifications Ctrl-U) in the "Chart mode" property.

[Thomas110]

Fernando Carreiro #: Yes, some symbols with central Exchanges like Futures for example, use "last" price and not "bid" price for Charts. I forgot to mention that in the previous post. You can check which prices are being used, "Bid" or "Last", in the contract specifications (Symbol specifications Ctrl-U) in the "Chart mode" property.

Many thanks.