Would stop loss be hit just because of widened spreads?

Hi,

I would like to know if stop-loss orders be executed just because of the widening of spreads, especially during news time and for those brokers who like to do so (Oanda, FxSol). I am new to this forum and I have posted a thread here 5 days ago and not sure if it is due to holidays or not, not many forum users wanted to help here. Would you please provide some information and I would apprecicate your response.
http://www.forexfactory.com/forexfor...ad.php?t=11677


Thanks.

Absolutely. The problem most traders have with stops and such is they only take into account the bid price. You buy at the ask and sell at the bid. Lets say the ask is 1.9603 and the bid is 1.9600 on cable and you enter a long position at the price of 1.9603. Your stop is 1.9550. You walk away and come back to see the price hit 1.9555 but your position was closed at your stop loss. So you get your panties in a wad and call your broker screaming and accusing them of stealing your money (and yes there have been threads started like this). The customer service person calmly tells you that the ask price reached 1.9555, but since the spread widened to 10 pips, the bid price was 1.9545, and since you exit your long position at the bid price, your position was liquidated. Then you feel like an asshole (or should).

Remember, spreads don't really mean anything, it all derives from the bid and ask prices, so be sure you know what both are. Either that, or get a fixed spread broker.