Bid versus ask charts and the stop that was triggered by the ask

[Amanhasnoname]

Most platforms draw charts on the bid price. A long position closes at the bid, but a short position closes at the ask, which is the bid plus the spread. That means a stop on a short is triggered by the ask line, even though the chart shows only the bid.

When the spread is small, the difference is small. When the spread widens, a short stop can be hit while the bid line never touches the level on the chart. It looks like the broker cheated, but it is just the mechanism.

Turning on the ask line in the platform settings solves the confusion. It shows exactly where short stops and long entries trigger.

Some traders go further and look at both bid and ask charts when placing orders. For a short setup, the relevant level is on the ask side.

The same logic applies to pending orders. Buy stops trigger on the ask, sell stops on the bid.

Is the ask line displayed on your charts, and has it ever explained a stop that looked unfair?