Advice welcomed - price crashed through SL

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Good afternoon 

The below has lost me 9.7 pips when my stop loss was above my entry (a buy trade) meaning that at worst I would gain 1.3 pips above my stop loss (spread around 0.3), and not lose anything, but I have lost 9.7 pips which has cost me!

The below details are my trade:

UK time - 2.23pm 24.1.24

AUDUSD - buy

Entry: 0.66037

SL: 0.66050 (moved above my entry to protect my capital once price had moved upwards) 

That means my SL was 1.3 pips above my entry (it was a buy trade) meaning I would not lose any capital.

It then took me out at a loss at this price: 0.65940

This means I have lost 9.7 pips when I had the security in place to not lose anything?! 

Please help, why has this happened?

Warmest regards

Jonny

 
Jonny 2024: The below has lost me 9.7 pips when my stop loss was above my entry (a buy trade) meaning that at worst I would gain 1.3 pips above my stop loss (spread around 0.3), and not lose anything, but I have lost 9.7 pips which has cost me! The below details are my trade:

UK time - 2.23pm 24.1.24

AUDUSD - buy

Entry: 0.66037

SL: 0.66050 (moved above my entry to protect my capital once price had moved upwards) 

That means my SL was 1.3 pips above my entry (it was a buy trade) meaning I would not lose any capital.

It then took me out at a loss at this price: 0.65940

This means I have lost 9.7 pips when I had the security in place to not lose anything?! 

Please help, why has this happened?

There is no such thing as "security" unless the broker offers guaranteed stop-loss (which usually has an extra service cost).

That is because prices can "slip" during periods of high volatility or low liquidity.

Check your tick data history at the time the stop-loss was hit and analyse the situation to see if slippage was involved (the most probable case).

And if not, discuss the issue with your broker.

 
Jonny 2024: UK time - 2.23pm 24.1.24

Your timing does not seem to align. Please confirm the open and close times of the trade.

However, there was in fact a large volatility spike/drop at 14:45 (UTC/GMT), that can explain the slippage, where it dropped from 0.66158 to 0.65934 in less than a second.

 
Fernando Carreiro #:

There is no such thing as "security" unless the broker offers guaranteed stop-loss (which usually has an extra service cost).

That is because prices can "slip" during periods of high volatility or low liquidity.

Check your tick data history at the time the stop-loss was hit and analyse the situation to see if slippage was involved (the most probable case).

And if not, discuss the issue with your broker.

Thank you for your reply, and upon reflection I believe this to be the case due to the large movement that occurred in a second or so, if that. I think it would have best to close the trade (in profit) well ahead of the news release rather than move the SL to Entry to navigate through it, as this is how the slippage occurred. Appreciate your reply and advice, thank you.
 
Fernando Carreiro #:

Your timing does not seem to align. Please confirm the open and close times of the trade.

However, there was in fact a large volatility spike/drop at 14:45 (UTC/GMT), that can explain the slippage, where it dropped from 0.66158 to 0.65934 in less than a second.

Open time: 13.23 UTC

Close time: 14:45 UTC

I think that explains it all. Thanks Fernando!

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