Stop Buy Order triggered when Stop Price was never reached

I had placed a Stop Buy Order for NIO, to be triggered @27$. The order was executed immediately @42.66$, although the price never reached 27$ to trigger the order.

I am trying to understand what happened, as the order should be triggered once the NIO price had reached 27$, with a market price. The 27$ threshold was never reach, yet the order was executed.
Any idea what has happened?

A stop buy would immediately turn into a market order.

~42 being higher than 27

why? it should trigger once the price hit the @27$… the price never dropped below 40$

It’s for buying above though. The stop is just the trigger point. So if you enter below the current it would just buy immediately.

I think you meant to do a limit buy.


I am confused now… the description says “Set a price above the current price that convert your order to a market order”
as I had 27$, and this was below the current price, that activated the order immediately?
So I can only buy if the market goes up?

in that case I would expect an error message, in case the stop price is less than the current one, correct?

Yes I would expect some validation and I’ve been banging that drum for a year. Same goes with selling if you entered a stop higher by mistake that would instantly sell.

Buy stop - higher than the current ASK

Sell stop - lower than the current BID

thank you for all of the support… is there a Moderator or someone from T212 here that we can address this ?
what would be the best way to raise this to the development team?

it is not a big issue to add in their backlog I guess

1 Like

I can tag a few staff who might :eyes: the thread and actually feed it back, and one might reply to say it’s been acknowledged. I made a post about a year ago, and reported it on chat, and nothing since so I’m not holding my breath.

To me there’s no excuse for not having the validation on inputs because if you meant to buy or sell immediately you would just use the market tab. Without the validation it just catches people out who wanted to limit order, or if they have fat fingers or haven’t drunk their coffee yet.

@David @B.E @Rumen @AlexK @George @Wit @Tony.V

Thank you so much for the support Phil

Gents, can you please support on this one? Your system triggers Market Orders instead of triggering them when the Stop price is reached.

If a customer should NOT enter a Stop price below the current price, then please inform your customer that this is treated as Market Order
@David @B.E @Rumen @AlexK @George @Wit @Tony.V
Can you please check this, as money are lost and the customer has no way to react

this is the chart of NIO… there is no candle down to 27$

The stop buy order is meant to be placed above the current buy quote of the price, whereas, the limit buy is the order that is used in cases like yours.

The reason for the instant execution is the fact that you had placed a target price for your stop buy below the current ask quote at the time. As a result, it had been executed as a standard market order.

@Rumen they know the reason, what is being asked is that the form has some validation added.

It makes no sense to allow a value higher when it’s meant to be lower, or a lower when it’s meant to be higher.

The customer would have just placed a market buy/sell if they wanted the best ask/bid immediately.

So it makes perfect sense to add the validation, especially when it could have significant financial impact by entering on that tab instead of the limit.

I perfectly agree with Phil, @Rumen . there should be a validation warning the customer that a market order will be created.

I also don’t understand your reasoning… I can only buy if the market goes up? I want to buy the dip, when market moves lower.
Or, the order should be created when ASK/BID price crosses the Stop Buy price… going up or down

Stop orders are converted into Market Orders after the Stop Price has been reached on the market. The logic of the Stop Buy order is to execute the order once the Stop Price is surpassed in an upward swing. Therefore, if the Stop Buy order price is set below the current market price, the system will register that the Stop Price is already surpassed, thus the order will be converted into a Market Order and go into instant execution. For further reference:

If you wish to set a pending buy order with a stock at a lower price than the current market price, you can instead put a Limit Buy order.

@Y.M is it possible to answer this

As far as the Stop order set-up is concerned, this is how its function is designed and our UI in this respect corresponds to the industry standard.

@Y.M and @Rumen I’m not questioning how it functions. If you see above I’ve explained how it works.

What I’m saying is on the order overlay screen have validation to prevent you clicking through to submitting the order if you haven’t followed the instructions.

So in these two examples which would instantly convert to market orders. They should respond with a please set a value above and please set a value below as an error message on attempting to submit.

There is zero reason why anyone would intentionally do this, so it would help save a lot of wasted money. Either mistake, lack of knowledge, or fat fingers they probably wanted to use a limit order instead.