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Gaps in price


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Gaps in price

  #1 (permalink)
 Grantx 
Reading UK
Legendary no drama Llama
 
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On my candle chart I notice a few gaps in price. What happens if I am in a position and my stop has been placed at that exact price that was gapped?
Is there a way to avoid this by specifying a range or something like 'If price falls below X then whatever it is, cancel the order'.

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  #3 (permalink)
bradhouser
Northern California where the girls are warm
 
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A regular stop loss order is triggered when price hits or moves through the price you set it at. It then becomes a market order, so if price gaps past your stop, it will execute, but you may have some slippage. Liquidity is key.


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