CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Pending orders like Stop Loss, Take Profit, and Trailing Stop are triggered when the instrument’s price reaches or surpasses the target price during market hours. However, in certain conditions, these orders may be executed at a different price than expected. This usually happens due to market gaps or high volatility.
What is a market gap?
How does this affect different order types?
- Stop loss orders may execute at a worse price than expected if a market gap causes a sharp price drop before the Stop Loss level is reached. This can lead to a larger-than-anticipated loss.
- Take Profit Orders may also execute at a different price if market volatility causes rapid fluctuations.
- Trailing Stops adjust dynamically with price movements but are still subject to delays or price gaps, which may affect execution.
❗️ Important
Understanding market gaps and volatile conditions is essential for managing your orders effectively and minimizing risk. Keeping an eye on market trends and potential price gaps can help you anticipate unexpected movements and adjust your trading strategy accordingly.