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Gap risk check

A stop-loss is an order, not a promise. When the market jumps past it on news or over a weekend, the trade closes at the first price after the jump. See what that costs at your size before you hold through it.

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  • No sign-up
  • Nothing you type is stored

The trade

In your account's currency.
EURUSD for a euro account, GBPUSD for pounds. Leave it empty for a typical rate; ignored for US dollars.
Below the entry for a buy, above it for a sell.
How far past your stop the price could open. Look at past Monday opens and news candles on your chart.
How much worse an ordinary stop usually fills.
Often two or three times the normal risk per trade.

If the market jumps

An example with typical numbers. Change any box to use your own.

The gap breaks your limit. A gap of 25 past your stop would cost $240.00 (2.40% of the account), 2.7 times the $90.00 you planned and over your 2%.

At the stop
$90.00 (0.90%) for this buy of 0.06 lots, 15 from the entry.
With normal slippage
$93.00 (0.93%) if the stop fills 0.5 worse.
After the gap
$240.00 (2.40%) if the market opens at 3960, 25 past the stop.
Size that fits the gap
0.05 lots: even this gap stays inside 2%. At the stop it risks 0.75% of the account.
Gap your size can take
About 18.3 past your stop before the loss reaches 2%.
  1. At the stop$90.00
  2. With normal slippage$93.00
  3. After the gap$240.00
  4. Your limit, 2%$200.00
What the same stop-out costs, in US dollars.

The gap is your number: look at past Monday opens and news candles on your own chart. Contract sizes are the common MetaTrader ones; check your broker's symbol specification. Commission and swap are not included.

Education only, not investment advice. The answer comes from the numbers you typed in, not from your account or the market. Simulated results are hypothetical and have limits: real trading has slippage, gaps, changing results and emotions. Trading leveraged products can lose money quickly, including all of it. Risk warning

Want this check on every trade?

Educational only, not financial advice; trading involves risk.

When a stop does not hold

A stop-loss becomes a market order when the price touches it. In a calm market it fills at or near the stop. When the price jumps instead of moving, after a central bank decision, a jobs report, or between Friday's close and Monday's open, there is no price at your stop to fill at, and the trade closes at the first price after the jump.

That is why a 1% risk per trade can become a 3% loss on one bad open. The fix is not to give up stops but to size for the gap you could meet: smaller before big news and over weekends, or flat.

How to use it

Not advice and not a forecast. The answer is arithmetic on the numbers you type, not a view on any market.

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Baroq never holds your money and never trades for you. Educational only, not financial advice; trading involves risk.

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