How do you handle excitement in fast markets?
Fast markets are thrilling, and the thrill is a liability: excitement trades bigger, faster and looser than calm does. Managing arousal is as important as managing risk.
What's your experience?
- how excitement changes your execution
- the rules that keep you grounded in fast markets
- the exciting session you'd redo calmly
The bid, ask and slippage guide explains what fast markets do to your fills.
Background: Bid, ask and slippage: why your order fills at a different price
Why buy trades open at one price and close at another, why a stop can trigger when the chart never touched it, and how slippage happens.
Why did my stop-loss trigger when the price on the chart didn't reach it?
Charts usually show the bid price, but a sell position's stop is triggered by the ask. If the spread widened, the ask could have touched your stop while the bid line stayed away from it.
What is slippage?
The difference between the price you expected and the price your order was filled at. It is most common in fast or thin markets, such as around news releases.
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