Quantum Fall and Stop Loss Order

[ibvr2004]

The USD loss 200 pips against EUR within seconds last Friday.
Will a Stop Loss order still be triggered in this extreme case?

For example, if I place a stop loss order at 30 pips loss last Friday. Will my postion be closed at 30 pips loss? Or it will be closed at 200 pips loss?

[Croesus]

Originally posted by ibvr2004
For example, if I place a stop loss order at 30 pips loss last Friday. Will my postion be closed at 30 pips loss? Or it will be closed at 200 pips loss?

It depends on your broker (Market Maker),
if they have guaranteed stop loss fills, your S/L will be triggered at 30 pips,
if they don't have guaranteed S/L then you may experiment a "price gap", last friday was a 100+ price gap!!!

Usually brokers that guarantee S/L fills have more wide spreads than others, the extra pips spread are for "insurance"
because if your broker fills your S/L at 30 pips (your example)
he get a loss, due the price is never existed.

[ibvr2004]

Thanks for the information.

FXCM offers a "no slippage" policy. Does it mean it is "not" gaureentee S/L?


Thanks again for the info.

[Harlequin]

Take into account that brokers who guarantee stop loss set a maximum. Tradestation and Refco have 1 million.
About no splippage I'm afraid it is not the same thing. It means n slippage from quotes you see on your trading platform, but if there's an abrupt boost or a plunge when you see the quote you're already burst ....
Experts, please rectify if I'm wrong

[Croesus]

Originally posted by Harlequin
It means n slippage from quotes you see on your trading platform

That's right!

Gap: Situation of discontinuity in the prices movement
(your price is never existed).
Slippage: The difference between estimated and actual transaction costs.

Bye!