If you are a trader or investor, you could have had the unsavory experience of your stops not being hit while on a losing trade, This leads to bigger losses than you had planned for. If it is too high, traders cal lose heart and stop trading altogether.
Brokers give various reasons for this: software malfunction, excessive traffic, lack of buyers or sellers etc.
We do not know how valid these reasons are. Usually this happens when the stock suddenly moves up or down.
Brokers give various reasons for this: software malfunction, excessive traffic, lack of buyers or sellers etc.
We do not know how valid these reasons are. Usually this happens when the stock suddenly moves up or down.
You can still reduce your losses
Even if the stop is not activated the first time, the software can keep attempting to square off the position until it is successful. That is how traders square off. When they realize the stop was not activated, they manually square-off the positions. Definitely the software can do this task better.
How to ensure square off
While entering the stop loss, select triggered square off at Market. In this you will enter a price at which the stop loss will be triggered, and the system will square off your trades at the best price available at that time.
The set up will be different for each broker's software. if you are not sure how to do this, ask your broker for help.
The set up will be different for each broker's software. if you are not sure how to do this, ask your broker for help.
