question about stop loss in MT5

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i am new using MT5, i have two questions

1)
I would like to know how the stop loss order triggered. For example, after buying a forex at price 1.0500, if i set a stop loss order at 1.0450. What price MT5 used to determine sending the market sell order out? using the  best bid price  dropping to 1.0450 or the  last traded price  dropping to 1.0450? but i cannot see any last traded price information in MT5.

2)

in UTC time 0:00am to 1:00am, i found that the bid ask spread will be much wider as 10 pips (for example EURUSD at 20250227 00:00:01 bid 1.04794 ask 1.04894). will MT5 stilling using this unrealistic bid/ask spread to calculate my unrealized p&l and also stop loss triggering?

if yes, how you guys deal with this issue? 


thanks!

 

Note that this is a technical forum, mostly for getting help with coding errors and help with basic solutions. Trading newbies normally do not get any responses except for ridicule and sarcasm.

But number 1) brokers will often use prices whatever they see fit; but the price they are supposed to use is the first tick price after the sl has been broken through. But ofthen a broker will use a different price. If this happens to you, then, you need to contact the broker before the 24 hour windows has elapsed to get them to refund you the difference. Some brokers are fast to respond to these requests because that they know that for every 1 trade you find, they may have done this to you on many more trades, so they do not care if they have to refund to you 1 of XX trades.

2) yes. this is a very common question among both newbie traders and even seasoned traders. This is often called "0 hour spreads". The most common excuse that brokers will give is that they have very little volume being traded at that time. And yet in todays trading world most brokers have traders from all over the world and different timezones based, not just local timezone traders, so how they can use that excuse in the year '25, i personally think that its a "crock".

 
alex2019trading:
if yes, how you guys deal with this issue? 


thanks!

1) a broker that uses the wrong price is a crook and thieft imo and becomes "disreputable" in my eyes, even tho some of these brokers are the biggest in the world. The only way to deal with this is to get any refunds from them that they are willing to give, and then to change to different broker.

2) how to deal with this one is much more complicated. That depends on the strategy of trading. Most often you account for this probability in the trading strategy. Other times will just increase your sl or remove your sl a few minutes before this 0 hour starts. But most often, i simply do not have a sl to start with; howevewr, then you accept the risk that price may be worse when this 0 hour finishes.

 

Most brokers with variable spreads widen considerably at end of day (5 PM ET) ± 30 minutes.
My GBPJPY shows average spread = 26 points, average maximum spread = 134.
My EURCHF shows average spread = 18 points, average maximum spread = 106.
(your broker will be similar).
          Is it reasonable to have such a huge spreads (20 PIP spreads) in EURCHF? - General - MQL5 programming forum (2022)

 

hi william, 

"However, I found the maximum bid price was only 0.97160 (20 pips spread)"


is it because the chart only show bid price? as his stop loss is buy order, so it will look at the best ask price, which has never been shown...


i wounder how people deal with this issue, do you think people remove the stop order in this hour and add back later?

and do u know if the broker use this wide spread bid/ask to calculate the unrealized p&l of the position? if yes, it doesn't make sense...

 
alex2019trading #:

hi william, 

"However, I found the maximum bid price was only 0.97160 (20 pips spread)"

is it because the chart only show bid price? as his stop loss is buy order, so it will look at the best ask price, which has never been shown...

i wounder how people deal with this issue, do you think people remove the stop order in this hour and add back later?

and do u know if the broker use this wide spread bid/ask to calculate the unrealized p&l of the position? if yes, it doesn't make sense...

There is a Ask price and a Bid price. Charts only shows the bars/candles based on Bid (or Last) prices.

  • A "buy" position opens at the Ask price and closes at the Bid price.
  • A "sell" position opens at the Bid price and closes at the Ask price.

Enable the Ask price line on your chart so that you can track the current value visually.

Do some research on what spread is and how it works and how to manage it.

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