Are stop loss and OCO orders pretty tightly executed generally? | Forex Factory

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Are stop loss and OCO orders pretty tightly executed generally?

  • #1
  • First Post: Jan 13, 2008 8:22am Jan 13, 2008 8:22am
Hi, I'm glad to have found Forex Factory. I'm a newbie to both this forum and currency trading.

I understand that the forex market is highly liquid, so I would like to know whether it is very easy to get out at your stop loss and OCO prices because of the liquidity? Put another way, do you feel alright putting in a stop loss and/or OCO order and then go to sleep expecting that your order would be filled (unlike in a stock where it could gap down dramatically and your order would be filled at a very bad price)?

How would news affect forex market price movements? Would it gap down (e.g. on bad news) so dramatically that your stop loss would be filled at dozens of pips below the price your specified?

Any real experiences that you would like to share in this regard? Thanks in advance! Good luck.
  • #2
  • Jan 14, 2008 6:23am Jan 14, 2008 6:23am
Quoting highseasFX
Hi, I'm glad to have found Forex Factory. I'm a newbie to both this forum and currency trading.

I understand that the forex market is highly liquid, so I would like to know whether it is very easy to get out at your stop loss and OCO prices because of the liquidity? Put another way, do you feel alright putting in a stop loss and/or OCO order and then go to sleep expecting that your order would be filled (unlike in a stock where it could gap down dramatically and your order would be filled at a very bad price)?

How would news affect forex market price movements? Would it gap down (e.g. on bad news) so dramatically that your stop loss would be filled at dozens of pips below the price your specified?

Any real experiences that you would like to share in this regard? Thanks in advance! Good luck.
You should really do a search of the forums, as these questions have been asked repeatedly.

Also, you might want to go through the free school at Babypips.com. It will give you many answers.

How easy it is to get in and out with S/L and OCO orders depends a lot on your broker but, generally, it's not a problem.

News will affect things dramatically and there have been many instances of people not being able to get out at their S/L setting and losing 100-300 pips in the process. That's why you shouldn't trade the news.
  • #3
  • Jan 14, 2008 10:54am Jan 14, 2008 10:54am
Welcome to the forum and the world of forex, HighseasFX.

Quoting In2Blues
That's why you shouldn't trade the news.
Please note this is the opinion of In2Blues.

There are traders on this forum who are experts at trading news, such as BurgerKing and MaXeY.

I myself dabble in a bit of news trading from time to time. Yes it can be risky, and potentially dangerous - but do not let anyone make you believe it's "wrong" to trade the news.
  • #4
  • Jan 14, 2008 10:56am Jan 14, 2008 10:56am
Error........
  • #5
  • Jan 15, 2008 7:32am Jan 15, 2008 7:32am
Quoting forexmoments
Welcome to the forum and the world of forex, HighseasFX.



Please note this is the opinion of In2Blues.

There are traders on this forum who are experts at trading news, such as BurgerKing and MaXeY.

I myself dabble in a bit of news trading from time to time. Yes it can be risky, and potentially dangerous - but do not let anyone make you believe it's "wrong" to trade the news.
I never said it was "wrong" to trade the news.

This person is a newbie, and I correctly advised him not to trade the news, since he doesn't know how things work yet. The people you mentioned are experts at news trading, as you said. There's a big difference!

Perhaps I should have said "That's why newbies shouldn't trade the news".

Anyone who advises a newbie to trade the news is completely irresponsible and does not have that person's best interests in mind.

The get rich quick mentality is why most newbies are looking to trade the news, and why they "advise" other newbies to do it. Most of them lose their shirt because they guess at what they're doing and don't trade from knowledge and experience.

Forex is not a get rich quick business, so newbies should not trade the news.
  • #6
  • Jan 15, 2008 11:33am Jan 15, 2008 11:33am
Quoting In2Blues
I never said it was "wrong" to trade the news.

This person is a newbie, and I correctly advised him not to trade the news, since he doesn't know how things work yet. The people you mentioned are experts at news trading, as you said. There's a big difference!

Perhaps I should have said "That's why newbies shouldn't trade the news".

Anyone who advises a newbie to trade the news is completely irresponsible and does not have that person's best interests in mind.

The get rich quick mentality is why most newbies are looking to trade the news, and why they "advise" other newbies to do it. Most of them lose their shirt because they guess at what they're doing and don't trade from knowledge and experience.

Forex is not a get rich quick business, so newbies should not trade the news.
Yep, I agree with you there. HighseasFX, take heed from what In2Blues has just said, he is spot on.
  • #7
  • Last Post: Jan 15, 2008 5:46pm Jan 15, 2008 5:46pm
thanks for the suggestions. actually I don't want to trade the news. i'm a technical trader and don't want the news to interfere with the patterns (of course, I still have to take them into account). As in my own stock trading, I always try to avoid trading a stock in advance of news announcements (surprise news and developments are of course, surprises).
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