Considerations for managing volatility

When you are placing a trade, it can be helpful to use a stop loss to protect your position. Stop loss orders are triggered if your position reaches or exceeds the stop loss limit price. Remember, stop loss orders are not guaranteed to fill at your requested price and with heightened volatility comes greater gap risk- the risk that the price you open or close a position could be significantly different to your targeted price.

In volatile times or when major announcements are expected over the weekend, consider reducing positions over the weekend and overnight to mitigate gap risks.

When markets are more volatile, consider reducing position sizes in order to use less margin and avoid overleveraging your account. Learn about the effects of leverage and margin .

As prices rapidly respond to new developments, our price alerts can keep you notified of price movements according to your own custom levels or draw tools.

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