Skip to main content

Why didn't my Stop Order trigger before I was liquidated?

  • Updated

Why your Stop Order wasn't triggered before you were liquidated depends on a lot of factors (such as the order type, execution instructions, and market movement). Here are some common reasons positions get liquidated before the Stop Order is triggered: 

Text Order Type & Execution Instructions Reason


Cancelled: Position in liquidation

Rejected: Position in liquidation

 

Order Type: Stop Limit or Market

execInst: Last

Liquidations are based on Mark Price. Since Mark Price can differ from Last Price, it's possible for Mark Price to reach your Liquidation Price before the Last Price can reach your Trigger/Stop Price. 

To make sure your Stop order triggers before you're liquidated, you can set the Trigger Price to Mark or place your Stop Order further from your Liquidation Price. 

Canceled: Position in liquidation
or

Canceled: Cancel from www.bitmex.com if it was cancelled by you.

 

 Order Type: Stop Limit

When you place a Limit Order with the Stop Price and Limit Price close together, you run the risk in periods of high volatility that your order will be triggered, sit in the Oderbook, and won't get filled. This is because the price moves past your Limit Price immediately after it is triggered and before the order can be filled.

To prevent your order from sitting in the orderbook, it is safer to use a larger spread between your Stop Price and your Limit Price as it will ensure there is enough liquidity between the two prices to fill your order

Rejected: Position in liquidation

Rejected: Executing at order price would lead to immediate liquidation

Order Type: Stop Market

no "execInst: Last" or "execInst: Index" (implying a trigger price of "Mark")

Once a stop order is triggered, an order is submitted to the exchange; however, in a fast-moving market, users may experience slippage.

Due to that, the Mark Price could reach the liquidation price before the order can be executed.

 

Also, if your Stop Market order is close to your Liquidation price, it's especially possible that, by the time the Stop triggers and the Market Order is placed, the orderbook moves to a range where it can't fill before your liquidation. 

Related articles

This website is operated by HDR Global Trading Limited, a company incorporated under the International Business Companies Act of 1994 of the Republic of Seychelles with a company number of 148707 and registered address at Global Gateway 8, Rue de la Perle, Providence Mahé, Seychelles (“HDR”). HDR wholly owns BitMEX, a Bitcoin-based trading platform.


Access to trading or holding positions on BitMEX is prohibited for any person or entity that is located, incorporated or otherwise established in, or a citizen or a resident of: (i) the United States of America, Québec (Canada), the Hong Kong Special Administrative Region of the People’s Republic of China, the Republic of Seychelles, Bermuda, Cuba, Crimea and Sevastopol, Iran, Syria, North Korea or Sudan; (ii) any state, country or other jurisdiction that is embargoed by the United States of America; or (iii) any other jurisdiction where the services offered by BitMEX are restricted (collectively “Restricted Jurisdictions”). If it is determined that any BitMEX user has given false representations as to their location, incorporation, establishment, citizenship or residence, or HDR detects a user is from a Restricted Jurisdiction as described above, HDR reserves the right to immediately close their accounts and liquidate any open positions. HDR may, in its sole discretion, implement controls to restrict access to the BitMEX trading platform in any of the Restricted Jurisdictions.