Can price pass you?

If you have a contract in at 1500.00 and you have an exit at 1500.25... Can the price reach 1500.50 without fulfilling your order?

With Stops, yes.

A stop becomes a market order once the price is hit. In fast markets, like right after a significant announcement, there may be a huge entry of market buy orders, with a much smaller number of limit sell orders in the system. As a result, the market continues to move up until all buy orders are filled. Your stop order may become a market order after the news related buy orders are entered. As a result, you're at the back of the line. I once had a $1000 slippage on a 30 year bond trade. It hurt.

As a day trader, I usually stay out of the markets when key announcements are being made. I pay attention to scheduled announcements. Last year, I saw the e-mini S&P trade up 8.00 and then down 5.00 in the first minute after an 8:30am announcement. I also have CNBC on while I'm trading. If they say Obama or Boehnner is making an announcement, I stand aside.

Hope this helps.

Perfect. THANKS!

Originally posted by TradeQueen

If you have a contract in at 1500.00 and you have an exit at 1500.25... Can the price reach 1500.50 without fulfilling your order?

If you are long from 1500. and the price gaps on the offer above 1500.25 you are guaranteed a fill
That was a limit order

If you are short from 1500 and your exit is at 1500.25 as a Stop, you are not guaranteed a fill because Stops have Limits to them. If they surpass the limit, the exchange may not honor your stop.