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Normally, we want to get filled on our Entries at our Stop price because that's where we've determined we'd like to add the risk - either from our mechanized trading system or by reading the chart.
So it might be surprised or frustrated when you get your executions and your fills are above your Stop price. WTF?
Stop orders become Market orders once they're elected, so there might be several orders (sometimes big ones) in front of you.
Those can push the price beyond your own Stop entry price.
In my experience, when that happens, it's a good thing.
This type of slippage doesn't infer a bad execution on the B/D or FCM's part, but because other buyers are interested at the same levels you are.
Listen to this episode and hear why that can be a good thing.
Click here to get your free copy of The Inner Voice of Trading audiobook.
By Michael Martin4.9
109109 ratings
Normally, we want to get filled on our Entries at our Stop price because that's where we've determined we'd like to add the risk - either from our mechanized trading system or by reading the chart.
So it might be surprised or frustrated when you get your executions and your fills are above your Stop price. WTF?
Stop orders become Market orders once they're elected, so there might be several orders (sometimes big ones) in front of you.
Those can push the price beyond your own Stop entry price.
In my experience, when that happens, it's a good thing.
This type of slippage doesn't infer a bad execution on the B/D or FCM's part, but because other buyers are interested at the same levels you are.
Listen to this episode and hear why that can be a good thing.
Click here to get your free copy of The Inner Voice of Trading audiobook.

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