diff --git a/freqtrade/freqtradebot.py b/freqtrade/freqtradebot.py
index c150d1aa9..9f06cbb67 100644
--- a/freqtrade/freqtradebot.py
+++ b/freqtrade/freqtradebot.py
@@ -689,9 +689,10 @@ class FreqtradeBot:
             self._notify_sell(trade, "stoploss")
             return True
 
-        if trade.open_order_id:
+        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
diff --git a/tests/test_freqtradebot.py b/tests/test_freqtradebot.py
index a80bb7452..65b5adda5 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_limit',
         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