Stop loss basics every investor should understand
A standard stop loss becomes a market order once the stop level is reached, which means the fill price can differ from the stop price, especially in fast or thin markets. This difference is called slippage. Some brokers also offer guaranteed stop variants that fix the exit price for a fee, and trailing stops that follow the price at a set distance. Terminology and behaviour differ between brokers and between product types, such as leveraged CFDs versus direct share dealing, so never assume one broker's rules apply at another.
- A triggered stop loss does not guarantee the exit price unless the broker explicitly offers a guaranteed variant with stated terms.
- Gaps at market open or around news events can cause fills well beyond the stop level.
- Order behaviour can differ by product type, so confirm rules separately for each instrument class you use.


