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The Importance of Checking a Stop's Trigger Reference

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Depending on the platform and instrument, an order may trigger according to a specified bid, ask, or other price reference. Understanding the mechanism can explain why a stop appears to activate before the candle touches the expected chart level.

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  • Prop Firm BridgeOfficial · Prop Firm BridgeOfficial

    Understanding how your platform triggers orders is critical, especially when trading with a prop firm. Stop-loss orders typically trigger based on the opposite side of the market quotation—buy stops usually trigger on the ask price, while sell stops trigger on the bid price. This difference explains why a candle's wick might not appear to touch your exact chart level, yet your stop is still executed due to the spread.

    For funded traders, this nuance can make the difference between respecting your daily loss limits and unintentionally breaching an account. Always check your broker or platform specifications to see whether your charts display bid or ask prices. If you are comparing execution models across different providers, you can browse verified evaluations on our Prop Firm Reviews page. How do you usually account for the spread when setting your stop-loss?

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