How stop losses work on Roxom
When you place a Stop Loss, you choose:- Trigger price: the price that activates the order (can be Mark Price, Last Price, or Index Price)
- Order type: market or limit order to actually close the position once triggered
See all stop order types and triggers in the Order Types & Execution Rules section of our Rulebook.
Why execution price can be different
- Trigger vs. execution: Your SL is activated when the trigger price hits your set level. If you use a market order, it will execute at the best available price in the order book, which may be different from the trigger price
- Slippage during volatility: In fast markets, the price can move quickly after triggering, especially with low liquidity
- Market closures and gaps: If the underlying market is closed, the Mark Price may be frozen. When it reopens, a gap can occur, and your SL executes at the first available price
Example
Scenario:- SL trigger price: 0.0300 BTC (Mark Price)
- Mark Price drops to 0.0300 BTC → SL activates
- The best available price in the order book is 0.0298 BTC → execution happens there
How to reduce unexpected fills
- Use Limit SL orders: If you want more control over execution price (but they may not fill if price moves too fast)
- Check your trigger price type: Always verify which trigger price type you selected (Mark Price, Last Price, or Index Price)
- Be cautious before market reopen: Be careful with large positions before the underlying market reopens
Learn more about market behavior during closures in the Behavior During Closed Hours section of our Rulebook.
Key takeaways
Important points:
- Stop Loss trigger price ≠ guaranteed execution price
- Slippage, liquidity, and market gaps can change the fill price
- Choosing the right trigger type and order type can reduce surprises
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