Why Your Stop-Loss Didn't Fill at the Price You Expected
The mechanics of stop orders, gaps, and slippage during fast-moving markets.
A standard stop-loss order becomes a market order once triggered — it does not guarantee execution at the stop price, only that an order will be sent once that price is reached.
In fast-moving or illiquid markets, the actual fill price can differ meaningfully from the stop price, a gap known as slippage. This is more common around major news events or at market opens after a gap.
Some brokers offer guaranteed stop-loss orders for an additional fee, which do lock in the exit price — understanding whether your broker offers this, and at what cost, is part of using stops effectively.
This guide is general education for informational purposes only and does not constitute personalized investment advice from Veridian.