Stop Orders: Why Your Exit Price Isn’t Guaranteed
Summary
Hollow Point Trading shares an educational video explaining why a stop price is a trigger, not a guaranteed exit price. It illustrates how a stock bought at $50 with a $48 sell stop could execute at $45 after overnight news, highlighting the risks of gaps and market orders.
https://youtu.be/G_auf2kVrLs
Your stop price is a trigger, not a guaranteed fill #Shorts
A stop price is not a guaranteed exit price. Imagine buying a stock at fifty dollars and placing a sell stop at forty eight. Your planned difference is two dollars per share, before costs. Now imagine news arrives overnight and the next available execution is forty five dollars. Once triggered, a regular stop becomes a market order. In this hypo...
