Spread and stop-loss

The chart shows the stop was never touched – yet the position is closed. Almost always, the spread is behind it. Understanding it helps you place stops more deliberately.

Bid, ask and spread

Every symbol has two prices: the selling price (bid) and the buying price (ask). The gap between them is the spread. By default, MT5 shows only the bid price in the chart.

Why sell trades are stopped out earlier

A sell trade is closed at the ask price. If your stop sits just above the visible high, the ask can reach it while the bid in the chart stays below. For buy trades the same applies to the entry: a buy limit order is only filled when the ask reaches the price.

When the spread widens

At the broker's daily rollover
Around major economic data
In quiet market phases and on thinly traded symbols

How to deal with it

In EasyFX you can switch on a spread buffer: you choose a factor between 0 and 3, and the current spread is added in full or in part to the stop-loss. This keeps your set risk per trade within your defined range even when spreads fluctuate.

Show the ask line in MT5 (chart properties)
Avoid placing stops exactly on round numbers or visible highs/lows
Factor the spread into your position size

Frequently asked questions

Is a wide spread the broker's fault?

Not necessarily. Spreads vary with market conditions. Raise unusually wide spreads at normal times with your broker.