What happens if my exchange stop-loss triggers during a brief price spike?

Depending on order type, a trigger can submit a market order into rapidly changing liquidity. The final execution may differ significantly from the stop price.

The answer

Depending on order type, a trigger can submit a market order into rapidly changing liquidity. The final execution may differ significantly from the stop price.

What to do next

Review whether the venue offers stop-limit or price-protection settings and understand the unfilled-order tradeoff.

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