Dear forum members,
This is a inquiry on MT4 and the prices it shows within candles, as well as the price specified in a Buy Stop order. I need to ask an opinion from other traders, further to a dilemma I am having with a new trading account.
As far as I know - this is what I observed/understood when trading with a number of retail brokers e.g. Oanda, Capital, Alpari:
1) a Buy Stop order in MT is triggered when the current Ask price meets the pending order's price - MT4 buy stops are not stop-if-bid orders.
2) in an OHLC candle, MT4 shows the High price which is the highest Ask price for that time period for example H1.
However according to the broker's support team on these 2 points:
1) A Buy Stop is triggered by comparing the order price to the current Bid.
2) MT4 shows the High of a candle as the highest Bid price.
This quite makes a difference, isn't it?... Not only when reading the chart (the spread would need to be added to the Bid to read each candle), but also when setting up the Buy Stop order price correctly.
Which statements would you go for - my primary purpose is to double check how MT normally works as it is essential to trade correctly. I trade 5 digits GBP accounts so this kind of gap/difference can cost a fortune.
Thank you in advance.
You buy at the Bid+spread and sell at the Bid.
So for pending buy orders it triggers when the Ask reaches.
For SL/TP of sell orders they trigger when the Ask reaches.
Thanks for replying. So point 1 (price at which the buy stop is filled) is clear i.e. I am right, the broker is wrong.
On point 2, I still want to check whether in any version of MT this is the bid price only which is shown in a candle?
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