What does ‘Stop losses are not guaranteed’ mean?
At paddypowertrader we always do our best to execute your stop loss orders at the level specified. However occasionally we may not be able to do so. The most common reason for this is ‘Gapping’. Gapping describes the situation where any market ‘jumps’ from one correctly quoted price to another, significantly different, correctly quoted price. There can be many reasons for gapping. Economic figures, company announcements, natural disasters etc. can all cause prices to ‘jump’ from one level to another. The effect of such a jump is that a stop-loss order will be subject to a gap in the price. One of the main occurrences of gapping in a spread bet is a movement in the underlying’ market price overnight, during which time paddypowertrader does not quote a price. For example if the Ryanair price fell from €6.00 at Wednesday’s close to €5.00 on Thursday morning’s open, and you had a stop loss set to sell at €5.75, the stop loss would have actually sold at €5.00. This is because the Ryanair pr
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