Share A Stop-Loss Interesting Experionce

ranchgirl

Yesterday, I bought TRID at $1.50, close at $1.55. To protect my profit/capital, I set a stop-loss at $1.51.

However, the stop was triggered this morning, it is sold at $1.52, the lowest price today so far. Why?

I called the brokerage, they did the research back-and-forth, finally, I understand how things might happened. Record here, share with you guys

1) Stop-loss is triggered by the highest bid price <= my stop-loss price (it was $1.50 bid), not actual transaction price

2) When my Stop-loss order is triggered, it becomes market order.

3) Now, the higher bidder placed an order($1.52), and MM gave my market  order the best price minus spread (their profit) .
4) My TRID was sold at lowest price this morning.

The lesson learned: Don't place Stop-loss-order overnight.

Wake-up early instead!!!!