Price Gap Protection is used to limit slippage for pending orders and is applied when the price of your pending order falls inside a price gap due to volatility or other factors.
Price Gap Protection applies to the following account types: Standard Cent, Standard, Pro, Raw Spread.
Price Gap represents the difference in pips between the requested price of a pending order and the first market price after a gap.
Different trading instruments have different Price Gap value ranges. (Refer to the table below).
Price Gap Protection is applied when the requested price specified in your pending order falls within the gap. According to this regulation, if the difference in points between the first market price (after the gap) and the requested price of your order is equal to or exceeds a certain number of points (Gap Level) for a particular instrument, your order will be executed at the first market price after the gap. If the difference is less than the Gap Level, your order will be executed at your requested price.
Price Gap Protection is not used in the following cases:
|Trading instrument||Gap Level value range (points)|
You place a Buy Stop order for EURUSD at the price 1.10056. Then, a price gap appears. The last Ask price before the gap was 1.10055, and the first Ask price right after the gap was 1.10057. To determine the price at which your Buy Stop order will be executed, you need to find the difference in points between the first Ask price after the gap and the price you specified in your order: (1.10057 - 1.10056) = 0.00001 = 1 point.
Now, check the Price Gap Protection table above to find the Gap Level value range for the instrument you are trading - in this case, EURUSD is 2 points. Let us assume the Gap Level value calculated at that instant is 1 point.
Since 1<2, as per the Price Gap Protection, your Buy Stop order will be executed at the price you specified in your order, 1.10056. This means that your order will be executed at a price that is 1 point more profitable than the current market price.