Can brokers see your stop-loss? (2024)

Can brokers see your stop-loss?

So, your broker is the only party that can see your stop-loss order. A broker could provide a market maker with access to stop orders, but this would be highly unethical and likely illegal in many jurisdictions. If you're concerned that your broker is engaging in stop-loss hunting, then trade with an ECN broker.

Can brokers see stop losses?

The short answer to this question is : NO, they don't! It's very risky for a Broker to push the market with artificial pricing to trigger your stop loss because they will be caught in very advantageous arbitrage opportunities and secondly they will have several legal repercussions and penalties.

Can traders see my stop-loss?

Trader Risk

Traders face certain risks in using stop-losses. For starters, market makers are keenly aware of any stop-losses you place with your broker and can force a whipsaw in the price, thereby bumping you out of your position, then running the price right back up again.

Can institutions see your stop-loss?

In most cases, institutional financial traders do not have direct access to the specific stop loss and take profit levels of individual retail traders.

Can other people see my stop-loss?

Market Makers Can See Your Stop-Loss Orders

Most newbies place stops that are visible to market makers. So market makers move the stock to the stop-loss levels and take them out.

How do I hide my stop-loss from broker?

Why traders don't use stop-loss?

A risk of using a stop-loss order is that it may be triggered by a temporary price fluctuation, causing the investor to sell unnecessarily. For example, if a security's price drops suddenly and then quickly recovers. Here, you may end up selling at a loss and missing out on potential gains.

How do you avoid stop-loss hunting?

Setting wider stop loss levels can help you avoid getting stopped out too quickly. This provides your trades with more breathing room and reduces the likelihood of your stop loss being hit due to short-term price fluctuations. Traders often place stop loss orders at round numbers or technical support/resistance levels.

Do big traders use stop-loss?

Professional traders usually use stop-loss orders to manage their risk effectively. They may set stop-loss levels based on a percentage of the position, or based on key support levels or various indicators. When using stop-losses, traders should consider their risk tolerance, comfort level, and technical analysis.

Are stop losses guaranteed?

Unfortunately, neither stop-loss orders nor stop-limit orders are foolproof or guaranteed to cap your losses at the desired level. Since a stop-loss order becomes a market order once the stop-loss level has been breached, it may get executed at a price significantly away from the stop-loss price.

Who can see my stop-loss?

Market makers are allowed to see where stop-loss orders are placed because of the structure of financial markets and the role of market makers in facilitating trading activities. Market makers play a crucial role in maintaining liquidity in the markets and ensuring that buy and sell orders can be executed efficiently.

Do long term investors use stop-loss?

In such cases, you can set a trailing stop loss to lock in your profits and ensure that even in the event of a fall in price from higher levels; your profits up to a certain level are protected. Long term investors use trailing stop losses quite effectively.

Can hedge funds see stop losses?

Big Sharks: Institutional traders and hedge funds wield massive capital. They can see clusters of stop-losses and sometimes push the market enough to trigger them for quick profits.

Are stop limit orders visible?

While limit orders are visible by the market, stop orders aren't visible until they have been set in motion i.e., triggered. 3. Stop limit orders require the investor to specify to their broker a stop price in addition to a limit price which might not always be identical to one another.

Can you make money with stop-loss?

Because a stop order becomes a market order once the stop price is reached and it's not instantaneous, the actual price at which you sell or buy may differ from the original stop price. No guaranteed profits. A stop-loss order will not ensure that you make money on a trade.

Do brokers charge for stop-loss?

Sometimes your stock broker can charge for using stop-loss order and that will be added to the brokerage.

Can my broker see my EA?

Oh yes a broker's server will know whether or not you're using an EA. If your broker is credible, then there's nothing to worry about. All you have to do is ensure your broker is ECN regulated.

Does stop-loss order require margin?

- Provides protection against downside risk: Stop loss orders with minimum margin can protect traders from significant losses if the market moves against them. By setting a minimum margin requirement, traders can ensure that they have enough funds to cover any losses that may occur.

Can you day trade without stop-loss?

It is possible to profit from intraday trading without using a stop loss, but this is generally not recommended. A stop loss is a risk management tool that is used to limit potential losses in a trade by setting a predetermined price at which the trade will be closed.

Can stop losses fail?

When the price drops or rises very fast, a market stop loss might execute at worse prices, and the limit stop loss might not execute at all. Check the next section to find out more about limit stop losses. Market orders are there to buy or sell something as fast as possible at the best available price right now.

What is the best stop-loss percentage?

Summary and conclusion - Stop-loss strategies work

The best trailing stop-loss percentage to use is either 15% or 20% If you use a pure momentum strategy a stop loss strategy can help you to completely avoid market crashes, and even earn you a small profit while the market loses 50%

Do institutional traders use stop-loss?

And the big players such as banks, big institutions, hedge funds, etc. need liquidity. Those big players cannot just enter a trade at once, but they slowly have to build a position by “hunting for liquidity”. And stop loss orders in the markets are the best way to get liquidity.

What triggers a stop-loss?

For example, a trader may buy a stock and place a stop-loss order with a stop 10% below the stock's purchase price. Should the stock price drop to that 10% level, the stop-loss order is triggered and the stock would be sold at the best available price.

Why do 80% of traders lose money?

Too much panic in the market

One of the basic reasons traders lose money in intraday trading is due to panic. In the stock markets when you panic, you actually subsidize the other trader who does not panics. Profits always flow from the trader who panics to the trader who does not panic.

Why 99% of traders lose money?

The reason why 90% of retail traders fail is that they ALL think, trade, and gamble the same way. It is a harsh statistic but is very very true. Not many retail traders last longer than 6 months as they do not understand this game at all.