- Report: #1495118
Complaint Review: kraken.com -
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kraken.com
United States
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Www.kraken.com
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kraken.com Rigged stop loss mechanic
This complaint is about Krakens rigged stop loss mechanic.
Conventionally a stop loss order stops your loss by closing a position once it hits a certain point. However, Krakens “stop loss” order is an individual “stop limit” order that remain persistent until canceled. For example, if you buy $1000 worth of stock with a stop loss of $900. Then the stock goes straight up to $1200 and you close the position for a $200 profit. Normally the order is settled and you take your profits. This is not the case with Kraken... With Kraken, a few days later the stock goes down to $900, Kraken will trigger your stop loss order at $900 and now you are stuck with it. Since Krakens “stop loss” order is an individual “stop limit” order that remain persistent until canceled you need to cancel the stop order even though you do not have a position to stop. Due to this mechanic it makes it impossible to take profits without the risk of your stop loss being triggered after your original position closes. The only way to avoid this trap is to watch your trades 24/7 and manually close all conditional close orders after your position closes. In my portfolio I recently found a -$2000 trade which was triggered by a stop loss order. Hence why I am making this complaint.
After speaking with support, apparently this is such a common occurrence that their support team has admitted to falling into this trap themselves, multiple times.
Kraken is working on fixing this mechanic. But for now, professional traders be weary. I was considering moving at least $100,000 over to trade with Kraken but not anymore.
Until they update their stop loss mechanic, Kraken cannot be taken seriously.
