Why is my trade closed, since the Market hasn't reached my SL?

It is important to understand that prices shown in the charts are indicative, and should not necessarily be treated as tradable prices.

As with most platforms, our Charts are drawn based on the BID price movement.

It often creates confusion to traders because the ASK price is not visible in the chart and people often wonder why their trade was executed at a price that cannot be found at the time of the execution.

This confusion mostly occurs for Sell orders.

Sell Orders open on the BID price and close on the ASK price.

If the Closing price of a Sell Order is not visible in the chart, this doesn’t necessarily mean that the order was incorrectly closed.

In most cases, it is because of the Spread (Difference between the ASK and BID price).

Example:

A Sell position on EURUSD was opened at the price of 1.22084 (Blue Cross) with a Stop Loss at 1.22321 (Red Line).

The trade eventually close due to Stop Loss but the highest price that can be seen in the Chart at the time of the execution is 1.22310.

As mentioned above, Charts only display the BID price movement.

The Price of 1.22310 was the highest BID price at the time.

By adding an average Spread of 1 Pip we can derive at the ASK Price (1.22320).

MT4 Charts

The prices used to draw MT4 charts are the raw prices excluding any mark-up(s).

Though this does not affect our Clients’ trades or execution, it is possible to create confusion on some trades.

Example:

A Buy position on EURUSD was opened at the price of 1.22115 with an attached Stop Loss at 1.22015.

The trade eventually closes due to Stop Loss but the lowest price that can be seen in the Chart at the time of the execution is 1.22019.

As mentioned above, our Charts do not include any added mark-up.

With an average mark-up of 0.4 pips, then we can derive the actual BID price of 1.22015.