# Stop loss doesn't works

**URL:** <https://community.trading212.com/t/stop-loss-doesnt-works/8385>\
**Category:** 🤝 Help\
**Created:** [June 4, 2020, 10:07pm UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385 "2020-06-04T22:07:42Z")\
**Posts on this page:** 20\
**Page:** 1

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**Author:** ![JKAndrex](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/jkandrex/32/263_2.png) [@JKAndrex](https://community.trading212.com/u/JKAndrex)\
**Post date:** [June 4, 2020, 10:07pm UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385/1 "2020-06-04T22:07:42Z")

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Hi guys, this is the second time that stop loss doesn’t close my trade on demo account.  
I got a pic of the order and the current price.

 ![Screenshot_20200604-235527_Trading 212](https://europe1.discourse-cdn.com/flex013/uploads/trading212/original/2X/6/6ae0d1b395fa2056abd1ea77952b99c4c43e7da8.jpeg)

How you can see I setted a stop loss at 15.20$ while the price is at 14.94$ (last price before market close).

How is it possible? How can I test my strategyes if stop loss does not work?

For programmers: I setted the stop loss using the “stop limit” option.

Please solve the problem, thanks.

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**Author:** ![phildawson](https://avatars.discourse-cdn.com/v4/letter/p/bbe5ce/32.png) [@phildawson](https://community.trading212.com/u/phildawson)\
**Post date:** [June 4, 2020, 10:36pm UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385/2 "2020-06-04T22:36:00Z")

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I think the problem is you set the stop limit wrong.

You set it to trigger a limit order to sell (Vendi?) when the price dropped below 15.20, but your limit is 18.00 (the minimum you want for each share) is above 15.20 so would never work (unless the price went back up to 18.00 or above).

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**Author:** ![JKAndrex](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/jkandrex/32/263_2.png) [@JKAndrex](https://community.trading212.com/u/JKAndrex)\
**Post date:** [June 5, 2020, 7:15am UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385/4 "2020-06-05T07:15:17Z")

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I wanted to sell, not to buy. I basically wanted to open a short position (in the invest account I can just sell my shares, and this is what I wanted do).

In short positions limit orders have to set above the price while stop orders bellow the price.  
It is an easy concept: if you are long your stop loss will be below the price not above, because it is a sell stop to go short.  
Here you will find how stop and limit orders work —\> [Investopedia](https://www.investopedia.com/ask/answers/050515/what-difference-between-buy-limit-and-sell-stop-order.asp#:~:text=A%20limit%20order%20sets%20a,the%20limit%20price%20or%20higher.&text=A%20sell%20stop%20would%20be,reaching%20the%20sell%20stop%20parameter.).

I was long at 16.10$ and I setted those order to sell: take profit (sell limit) at 18$ and stop loss (sell stop) at 15.20$.

Now the only problem can be just the low volume, but is it really possible that in a practice account the app can’t close the position for this?  
The last time it happened with Twitter…a mega cap stock.

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<div class="post-metadata">

**Author:** ![phildawson](https://avatars.discourse-cdn.com/v4/letter/p/bbe5ce/32.png) [@phildawson](https://community.trading212.com/u/phildawson)\
**Post date:** [June 5, 2020, 7:23am UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385/6 "2020-06-05T07:23:20Z")

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That screenshot is from the invest account isn’t it, where you can’t open short positions.

Are you talking about CFD?

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<div class="post-metadata">

**Author:** ![JKAndrex](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/jkandrex/32/263_2.png) [@JKAndrex](https://community.trading212.com/u/JKAndrex)\
**Post date:** [June 5, 2020, 7:39am UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385/7 "2020-06-05T07:39:12Z")

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I’m in **invest** account.

I bought some shares, it means **I went long**.

To sell my shares I have to open a short position.  
**To close a long position you have to open a short position** , to close a short position you have to open a long position (you can do the last one just on CFD account).

I didn’t open a short position, I said to the broker, using a OCO order, to do it for me.  
OCO means “order cancel order”, when one of the two orders get trigger the other one get deleted.  
I setted a **sell limit** al 18$ (take profit) and a **sell stop** (stop loss) to do this.

 ![order-types](https://europe1.discourse-cdn.com/flex013/uploads/trading212/original/2X/a/aa7c103a8a4baa98521b55fef9d416ac7a24ffa4.jpeg)

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<div class="post-metadata">

**Author:** ![phildawson](https://avatars.discourse-cdn.com/v4/letter/p/bbe5ce/32.png) [@phildawson](https://community.trading212.com/u/phildawson)\
**Post date:** [June 5, 2020, 7:41am UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385/8 "2020-06-05T07:41:34Z")

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I think you’re misunderstanding the **invest** account, you can only open long positions. (You are always hoping the price will go up)

When you create a sell stop limit in the **invest** account, you are saying trigger at the stop amount and you limit the minimum you want to accept for it. If you have the limit above the stop, then it would only ever get you that amount if it went back up at or above the limit value.

The sell stop (market order) and sell stop limit (limit order) is there so that you protect from losing out.

If you want to bet against it and think the price will go down then use CFD to create the short position.

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<div class="post-metadata">

**Author:** ![JKAndrex](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/jkandrex/32/263_2.png) [@JKAndrex](https://community.trading212.com/u/JKAndrex)\
**Post date:** [June 5, 2020, 7:47am UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385/9 "2020-06-05T07:47:38Z")

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**I wanted close my position.** I have to sell my shares to do this.

**Stop loss exists in both invest and cfd account.**

Buying shares in invest account does not mean that you have close positions manually.

**Stop loss in a long position in a sell stop order.**

**Open the link I sent to you before and read.**  
**[Investopedia](https://www.investopedia.com/ask/answers/050515/what-difference-between-buy-limit-and-sell-stop-order.asp#:~:text=A%20limit%20order%20sets%20a,the%20limit%20price%20or%20higher.&text=A%20sell%20stop%20would%20be,reaching%20the%20sell%20stop%20parameter.).**

The problem with the stop loss is just in the practice account, in the real account everything works grat.

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<div class="post-metadata">

**Author:** ![JKAndrex](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/jkandrex/32/263_2.png) [@JKAndrex](https://community.trading212.com/u/JKAndrex)\
**Post date:** [June 5, 2020, 7:49am UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385/10 "2020-06-05T07:49:01Z")

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I used them to protect me out. It is 20 minutes that I’m saying it. Are you kidding me?

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<div class="post-metadata">

**Author:** ![phildawson](https://avatars.discourse-cdn.com/v4/letter/p/bbe5ce/32.png) [@phildawson](https://community.trading212.com/u/phildawson)\
**Post date:** [June 5, 2020, 7:49am UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385/11 "2020-06-05T07:49:16Z")

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I think you need to re-read what I am saying, please don’t ask me to read that when I’m trying to help explain why your stop limit didn’t work.

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<div class="post-metadata">

**Author:** ![phildawson](https://avatars.discourse-cdn.com/v4/letter/p/bbe5ce/32.png) [@phildawson](https://community.trading212.com/u/phildawson)\
**Post date:** [June 5, 2020, 7:53am UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385/12 "2020-06-05T07:53:03Z")

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Just to explain again if you are thinking the price is going to drop then use CFD to bet against it. You could say I think it’s going from 16 to 15 next.

If you are thinking it’ll go up you could use the invest account. However if you are creating a stop at 15.20 then the limit will never execute (unless it went back over 18.00 again)

 ![Screenshot_20200605-085208](https://europe1.discourse-cdn.com/flex013/uploads/trading212/original/2X/e/e90e6be43ffe64a301bccfcae1e4ba99dd57d5c3.png)

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<div class="post-metadata">

**Author:** ![JKAndrex](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/jkandrex/32/263_2.png) [@JKAndrex](https://community.trading212.com/u/JKAndrex)\
**Post date:** [June 5, 2020, 7:54am UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385/13 "2020-06-05T07:54:47Z")

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The one that didn’t work was the sell stop not the stop limit. (I think you meant sell limit, stop limit does not exists).

1. I setted a sell stop to sell my shares (stop loss)
2. The price fell bellow it
3. The sell stop order didn’t execute

This is the problem.

I know I can’t sell on invest account. What I can sell is what I own. I own 7 shares and I wanted sell 7 shares at 15.20$.  
Not 8, 10, 20, 100 shares, just the 7 shares that I own and I setted a sell stop order to do this.

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<div class="post-metadata">

**Author:** ![adm](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/adm/32/8177_2.png) [@adm](https://community.trading212.com/u/adm)\
**Post date:** [June 5, 2020, 7:56am UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385/14 "2020-06-05T07:56:41Z")

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In the Invest account, STOP Limit orders only work on buying shares at a price below current market price and selling above that price.

 ![Capture](https://europe1.discourse-cdn.com/flex013/uploads/trading212/original/2X/e/e9a37a20538c9b9307519f3932c6dc6b7d70eeaf.jpeg)

STOP Price must be higher than the LIMIT price.

Example:  
£10 share.

I want to buy it at £8 and sell at £12.  
So I set up a STOP LIMIT as shown below:

 ![Capture](https://europe1.discourse-cdn.com/flex013/uploads/trading212/original/2X/5/5837da6d4719b31752782b35402fc37271da6cee.jpeg)

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<div class="post-metadata">

**Author:** ![phildawson](https://avatars.discourse-cdn.com/v4/letter/p/bbe5ce/32.png) [@phildawson](https://community.trading212.com/u/phildawson)\
**Post date:** [June 5, 2020, 7:56am UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385/15 "2020-06-05T07:56:48Z")

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A stop is just a trigger for a market order.

So a stop would have created a market order at 15.20 which would get you the best price at the time (it doesn’t guarantee it will be above any specific value that the stop limit helps with)

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<div class="post-metadata">

**Author:** ![JKAndrex](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/jkandrex/32/263_2.png) [@JKAndrex](https://community.trading212.com/u/JKAndrex)\
**Post date:** [June 5, 2020, 7:56am UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385/16 "2020-06-05T07:56:56Z")

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I don’t want to short the stock, I want to close my position. I was long, I have to sell my stocks to close the position. It is a sell order, it means going short

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<div class="post-metadata">

**Author:** ![JKAndrex](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/jkandrex/32/263_2.png) [@JKAndrex](https://community.trading212.com/u/JKAndrex)\
**Post date:** [June 5, 2020, 7:58am UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385/17 "2020-06-05T07:58:52Z")

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This is to buy the stock, I already bought 7 stock, I have to sell them. The word “vendi” near my limit orders means “sell”.

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<div class="post-metadata">

**Author:** ![adm](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/adm/32/8177_2.png) [@adm](https://community.trading212.com/u/adm)\
**Post date:** [June 5, 2020, 7:59am UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385/18 "2020-06-05T07:59:51Z")

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In this case, you have two options.

Market sell, to sell at current market price.  
OR  
STOP sell.  
Using the tab which just says STOP.

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<div class="post-metadata">

**Author:** ![phildawson](https://avatars.discourse-cdn.com/v4/letter/p/bbe5ce/32.png) [@phildawson](https://community.trading212.com/u/phildawson)\
**Post date:** [June 5, 2020, 8:00am UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385/19 "2020-06-05T08:00:01Z")

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As explained a few times a stop just creates a market order when it gets to that trigger point.

It’s like if you were sitting looking at that point in time and pressed the sell market order button yourself. It’s just automatic so you don’t have to spend all day keeping tabs on what it’s doing and have a panic next time you check and see it’s dropped way further than what you ever wanted.

There is no opening short position or anything you are getting confused.

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<div class="post-metadata">

**Author:** ![JKAndrex](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/jkandrex/32/263_2.png) [@JKAndrex](https://community.trading212.com/u/JKAndrex)\
**Post date:** [June 5, 2020, 8:00am UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385/20 "2020-06-05T08:00:27Z")

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Yes I konw, in the first reply I wrote this **"Now the only problem can be just the low volume, but is it really possible that in a practice account the app can’t close the position for this?**  
**The last time it happened with Twitter…a mega cap stock."**

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<div class="post-metadata">

**Author:** ![adm](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/adm/32/8177_2.png) [@adm](https://community.trading212.com/u/adm)\
**Post date:** [June 5, 2020, 8:02am UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385/21 "2020-06-05T08:02:13Z")

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To simplify guys:

- Market = Buy/Sell at the current market price.

- LIMIT = Buy/Sell once the price reaches your entered price.

- STOP = Sell when the price drops to your entered price.

- STOP / LIMIT = Buy when at the Limit price, and sell at the STOP price.

Just remember if the market GAPS down, you could end up selling at a lower price than intended.

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<div class="post-metadata">

**Author:** ![JKAndrex](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/jkandrex/32/263_2.png) [@JKAndrex](https://community.trading212.com/u/JKAndrex)\
**Post date:** [June 5, 2020, 8:02am UTC](https://community.trading212.com/t/stop-loss-doesnt-works/8385/22 "2020-06-05T08:02:42Z")

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I used an OCO order to this: I created a sell limit at 18$ (take profit) and a sell stop at 15.20$ (stop loss). You are right on what you said, the problem is that the sell stop order been not triggered.

[Next page](https://community.trading212.com/t/stop-loss-doesnt-works/8385.md?page=2)
