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system
can a stop loss order be triggered by random price?
user
typically this isn't a random order- having a small volume just means it's not showing on the chart, but it is a vlid price point. same thing would've happened if it would've been a very large order that shows on the chart. consider also that this could have been the first one of many transactions that go far below your stop point - would you not have wanted it to be executed then, at this time, as it did? would you expect the system to look into future and decide that this is a one time dip, and not sell; versus it is a crash, and sell? either way, the system cannot look in the future, so it has no way to know if a crash is coming, or if it was a short dip; therefore the instrcutions are executed as given - sell if any transfer happens below the limit. to avoid that (or at least reduce the chance for it), you can either leave more distance (and risk a higher loss when it crashes), or trade higher volumes, so the short small dip won't execute your order; also, very liquid stocks will not show such small transaction dips.
assistant