How stop loss orders work in general
A standard stop loss becomes a market order when the stop level is reached, which means the fill price can differ from the stop price in fast or gapping markets. This difference is called slippage. Some brokers also offer guaranteed stop losses on certain products, usually for an extra charge, where the fill price is contractually fixed; availability and cost vary and must be confirmed with the broker. Long-term investors should also weigh a behavioural point: tight stops on volatile instruments can close positions during ordinary swings that a longer holding plan intended to ride through.
- A triggered stop typically executes at the next available price, not necessarily the stop price.
- Gaps over weekends or around news can produce fills well beyond the stop level.
- Guaranteed stops, where offered, involve extra conditions or costs that must be confirmed in broker documents.
- Stop placement should reflect the instrument's normal volatility and your holding horizon.


