Your stop loss is a market order in disguise

[Amanhasnoname]

A stop loss feels like a guaranteed exit price. It is not. Once price touches the level, the stop becomes a market order and fills at the next available price, which can be worse than the level, sometimes much worse.

In a calm market, the difference is a fraction of a pip. During a spread spike or a news candle, a 3 pip stop can easily become a 6 or 8 pip loss, wiping out the equivalent of several winning trades.

This is also why stops tighter than the typical spread plus short-term noise tend to get hit constantly. The stop trips on a momentary widening, not on a genuine move against the position.

Some practical angles:

Run a log of stop-outs and compare the actual fill against the stop level. The average slippage on stops tells more than any broker advertisement.

Avoid holding a position with a tight stop through scheduled data releases. The stop will not protect anything that moves faster than the feed.

If slippage on stops keeps hurting, is it better to accept a wider stop with smaller size, or to exit manually and take the risk of hesitating?