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How is my stop triggered?

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Grantx View Post
I am asking this because I am still on demo and I am not sure how my stop gets stored or triggered server side on a live account.

Instrument: ES
Price is currently offered at 74.00 and I buy.
Stop is 2 ticks away at 73.50.

Price ticks down to 73.75 bid.
Buyers break the bid and 73.75 goes offer.

Price ticks down to 73.50 bid.
On the demo, my position will be closed immediately as 73.50 goes bid.
On a live account though, what happens? I am in a long position so therefore am a seller. How is a stop executed?


Same thing happens on a live account.

If you are using a straight stop, as soon as just 1 contract is traded at the price where your stop is, the stop gets triggered and you're out.

If you're using the so called 'DOM-triggered' stops, then you can set the stop to be triggered only when the limit orders at that level go below a certain threshold.

It's palatable because you are not necessarily thrown out of the trade as soon as 1 contract trades there, but the flipside is, depending on the threshold level you set, if a big order comes and sweeps that level out you will suffer slippage.

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