When are stops are triggered?

Hi,

I'm a little confused as to when stop losses and trailing stops are actually triggered, when taking into account the spread as well as commissions and rollovers.

For example, if you were to go LONG on a currency pair, is the stop triggered when the ASK or the BID reaches the designated price? I assume it's the opposite when you're going SHORT?

For instance, if the spread is 2 pips when you enter LONG, does that mean you're already 2 pips closer to your stop loss, or that if you set a 25-pip trailing stop, that it's already down to 23 pips, right from the entry?

Also, are things such as broker commissions (for ECNs) and rollover interest "counted" towards how many pips the price has actually moved against you?

Does it matter what kind of broker it is? For instance, I'm currently associated with MB Trading, an ECN broker. I'm not sure if this makes any sort of difference.

Thanks!

Hi,

I'm a little confused as to when stop losses and trailing stops are actually triggered, when taking into account the spread as well as commissions and rollovers.

For example, if you were to go LONG on a currency pair, is the stop triggered when the ASK or the BID reaches the designated price? The bid. I assume it's the opposite when you're going SHORT? Yes Just make sure the broker gets their cut and you can't go wrong with these calculations

For instance, if the spread is 2 pips when you enter LONG, does that mean you're already 2 pips closer to your stop loss No it's set from the bid, or that if you set a 25-pip trailing stop, that it's already down to 23 pips, right from the entry?

Also, are things such as broker commissions (for ECNs) and rollover interest "counted" towards how many pips the price has actually moved against you? No it's just a cash amount added or subracted from the trade outcome

Does it matter what kind of broker it is? For instance, I'm currently associated with MB Trading, an ECN broker. I'm not sure if this makes any sort of difference.Not really.

Thanks![/quote]