If I have a stop in place at a specific price lets say $10 and the next morning at open it gaps down and opens at $8 would my stop get triggered and if so would it most likely get triggered around $8?
Is it possible to get out at a higher price than the open $8 say somewhere between $8 and $10 assuming it's a stop market?
You might get executed at a slightly higher price, but it is unusual. When the market trades through your price, your stop order becomes a market order. If the next trade is higher (I have had this happen on occasion), then your fill might be somewhat (typically very slightly) higher as well. Similarly, there is no guarantee that ithe next trade won't be lower, and your stop order could also be executed at a worse price. Jessie
Also a stop-limit order will become an active order and will execute depending on your limit price. If you had a stop limit with a stop price of $9 and a limit of $7.50 it will become a limit $7.50 order upon opening (because your stop price of $9,- has been crossed) If there are trades > $7.50 you will most likely get a fill (depending on the number of orders prior in line)
Thanks for all the feedback. As you can tell I havn't had the unfortunate pleasure of experiencing one of these yet, however from a new traders perspective it really opened my eyes to the danger of putting to much of my acct on one trade and has made me a little less casual on some of my picks. Erik