What happens during market gaps or volatility? | XS
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What Happens During Market Gaps Or Volatility?

Market gaps and high volatility occur when prices move rapidly or open at levels significantly different from the previous close. Causes include economic news, earnings releases, geopolitical events, or low liquidity. In such situations:

  • Pending stop or limit orders are triggered at the next available market price
  • Execution prices may differ from requested prices (slippage)
  • Stop-loss orders do not guarantee exact execution prices unless a guaranteed stop feature is offered

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