Limitations of Stop Orders

While stop orders are useful tools for managing risk, they are not a guarantee against losses.

Key Points

• They generally do not execute in pre-market or after-hours trading.
• In fast-moving markets, execution can occur at prices worse than your stop price (slippage).
• They can trigger from brief price spikes, exiting trades prematurely.

Disclaimer: For educational purposes only. This is not investment advice. Trading involves risk.