OmbraNews spikes and stops: why your fill can be worse than your stop
Scheduled economic releases, many at 08:30 New York time, can move futures several points in a second. The illustration shows a simulated example.
When the price touches a stop order, the stop becomes a market order and fills at the next available price. In a fast move that price can be well beyond your stop. The difference is slippage.
Slippage counts against your daily loss limit and drawdown in full. A trade you planned to risk $200 on can cost more.
Some firms restrict trading around certain releases; check yours. Many traders choose to be flat a few minutes before a major release, or to cut size.
Keep an economic calendar open, note the release times for the day in your plan, and decide in advance what you will do.
Education only. Not advice. Trading futures carries risk of loss; evaluations use simulated accounts.