diff --git a/freqtrade/freqtradebot.py b/freqtrade/freqtradebot.py
index fd5af363b..79a4a8ef0 100644
--- a/freqtrade/freqtradebot.py
+++ b/freqtrade/freqtradebot.py
@@ -693,8 +693,24 @@ class FreqtradeBot:
         except InvalidOrderException as exception:
             logger.warning('Unable to fetch stoploss order: %s', exception)
 
+        # We check if stoploss order is fulfilled
+        if stoploss_order and stoploss_order['status'] == 'closed':
+            trade.sell_reason = SellType.STOPLOSS_ON_EXCHANGE.value
+            trade.update(stoploss_order)
+            # Lock pair for one candle to prevent immediate rebuys
+            self.strategy.lock_pair(trade.pair,
+                                    timeframe_to_next_date(self.config['ticker_interval']))
+            self._notify_sell(trade, "stoploss")
+            return True
+
+        if trade.open_order_id or not trade.is_open:
+            # Trade has an open Buy or Sell order, Stoploss-handling can't happen in this case
+            # as the Amount on the exchange is tied up in another trade.
+            # The trade can be closed already (sell-order fill confirmation came in this iteration)
+            return False
+
         # If buy order is fulfilled but there is no stoploss, we add a stoploss on exchange
-        if (not trade.open_order_id and not stoploss_order):
+        if (not stoploss_order):
 
             stoploss = self.edge.stoploss(pair=trade.pair) if self.edge else self.strategy.stoploss
 
@@ -713,16 +729,6 @@ class FreqtradeBot:
                 trade.stoploss_order_id = None
                 logger.warning('Stoploss order was cancelled, but unable to recreate one.')
 
-        # We check if stoploss order is fulfilled
-        if stoploss_order and stoploss_order['status'] == 'closed':
-            trade.sell_reason = SellType.STOPLOSS_ON_EXCHANGE.value
-            trade.update(stoploss_order)
-            # Lock pair for one candle to prevent immediate rebuys
-            self.strategy.lock_pair(trade.pair,
-                                    timeframe_to_next_date(self.config['ticker_interval']))
-            self._notify_sell(trade, "stoploss")
-            return True
-
         # Finally we check if stoploss on exchange should be moved up because of trailing.
         if stoploss_order and self.config.get('trailing_stop', False):
             # if trailing stoploss is enabled we check if stoploss value has changed
diff --git a/tests/test_freqtradebot.py b/tests/test_freqtradebot.py
index a15533afa..5f16894ab 100644
--- a/tests/test_freqtradebot.py
+++ b/tests/test_freqtradebot.py
@@ -1127,6 +1127,7 @@ def test_handle_stoploss_on_exchange(mocker, default_conf, fee, caplog,
         'freqtrade.exchange.Exchange.stoploss',
         side_effect=DependencyException()
     )
+    trade.is_open = True
     freqtrade.handle_stoploss_on_exchange(trade)
     assert log_has('Unable to place a stoploss order on exchange.', caplog)
     assert trade.stoploss_order_id is None
@@ -1140,6 +1141,16 @@ def test_handle_stoploss_on_exchange(mocker, default_conf, fee, caplog,
     freqtrade.handle_stoploss_on_exchange(trade)
     assert stoploss.call_count == 1
 
+    # Sixth case: Closed Trade
+    # Should not create new order
+    trade.stoploss_order_id = None
+    trade.is_open = False
+    stoploss_limit.reset_mock()
+    mocker.patch('freqtrade.exchange.Exchange.get_order')
+    mocker.patch('freqtrade.exchange.Exchange.stoploss_limit', stoploss_limit)
+    assert freqtrade.handle_stoploss_on_exchange(trade) is False
+    assert stoploss_limit.call_count == 0
+
 
 def test_handle_sle_cancel_cant_recreate(mocker, default_conf, fee, caplog,
                                          limit_buy_order, limit_sell_order) -> None:
@@ -1165,7 +1176,7 @@ def test_handle_sle_cancel_cant_recreate(mocker, default_conf, fee, caplog,
     freqtrade.enter_positions()
     trade = Trade.query.first()
     trade.is_open = True
-    trade.open_order_id = '12345'
+    trade.open_order_id = None
     trade.stoploss_order_id = 100
     assert trade