You set a stop-loss expecting your trade to close at a specific level. You checked your trade history, and the loss is larger than you planned for. On Boom and Crash Indices, this usually means the stop-loss did its job as a trigger, but the price moved through that level in a single sharp event and the order filled at the next available price.
The stop-loss didn't fail. The fill price reflects what the market was doing at the moment the order executed.
Here’s how the difference between stop-loss price and execution price works.
Key takeaways
- A stop-loss is the price level that triggers the exit on a trade — it is not a guaranteed exit price.
- When the market moves sharply through that level, the trade closes at the next available price, which can sit further from the entry than planned.
- Boom Indices drift downward and spike upward. Crash Indices drift upward and drop downward. If you sell on Boom, an upward spike moves against you. If you buy on Crash, a downward drop moves against you.
- This means the realised loss on a trade can be larger than the loss the stop-loss was set to cap.
- Wider stop-loss buffers, smaller position sizes, and an understanding of how spike events behave can help traders plan for this.
Stop-loss level vs execution price
The stop-loss level is the price at which an exit instruction is triggered. The execution price is the price at which the trade actually closes.
In a calm, slow-moving market, those two numbers are usually very close. In a market that can move sharply within a single tick, they can differ — sometimes meaningfully. This is true on any market with fast or discontinuous price movement. It is especially relevant on Boom and Crash Indices, where sudden events are built into how the instrument is designed.
Why spikes affect stop-loss execution
Boom and Crash Indices share a defining behaviour: a slow, steady drift in one direction, punctuated by a sudden event in the opposite direction.
- Boom Indices drift downward in small steps, then spike sharply upward at irregular intervals.
- Crash Indices drift upward in small steps, then drop sharply downward at irregular intervals.
The direction of the spike or drop decides which trades it works against. For example:
- If you sell on a Boom Index, you are speculating on the price going down. An upward spike moves the price in the opposite direction to your trade. When the spike fires, the price can jump above your stop-loss in a single tick.
- If you buy on a Crash Index, you are speculating on the price going up. A downward drop moves the price in the opposite direction to your trade. When the drop fires, the price can fall below your stop-loss in a single tick.
In both cases, the stop-loss is triggered, but by the time the order is filled, price has already moved past the trigger level. The order closes at the next available price.
A worked example
A trader opens a sell position on a Boom Index at 10000.000, with a volume of 0.50 and a stop-loss set at 10010.000.
The planned risk is:
- 10010.000 − 10000.000 = 10 points
- 10 × 0.50 = $5.00 planned risk
A spike fires. The order fills at 10025.000 instead of 10010.000.
The realised loss is:
- 10025.000 − 10000.000 = 25 points
- 25 × 0.50 = $12.50 realised loss
The stop-loss worked as designed: it triggered an exit. The fill happened at the price the market offered after the spike.
Did the stop-loss fail?
No. The stop-loss did what a stop-loss is designed to do: it triggered an exit once the price reached the level you set. What can differ is the price at which the order is then filled. On instruments where price can move discontinuously — like Boom and Crash Indices during a spike — the fill price can sit beyond the trigger level.
A standard stop-loss is an instruction to close, not a guaranteed exit at the exact stop price.
How traders can plan for spike behaviour
Spike events on Boom and Crash Indices are part of the instrument's design. They are unpredictable in timing but consistent in nature. A few things worth considering:
- Wider stop-loss buffers. A tight stop on a spike-prone instrument carries a higher chance of execution at a price beyond the trigger.
- Smaller position sizes. A smaller volume keeps the worst-case fill within a tolerable range, even when slippage occurs.
- Understanding spike frequency. The number in the index name (e.g. Boom 900) refers to the average frequency of spikes over many ticks. Each tick is independent — a spike is not more likely just because one hasn't happened in a while.
- Checking contract specifications. Spread, swap, and lot size details on Boom and Crash Indices are available on the platform and worth reviewing before sizing a trade.
What to check if your loss looks higher than expected
If a realised loss looks larger than the stop-loss should have allowed, the trade history should show what actually happened. Useful details to gather:
- Position ID
- Entry price
- Stop-loss level
- Close price
- Volume
- Timestamp of the close
- Trade journal and execution logs
These details together tell a complete story of how the trade opened, where the stop-loss was set, and where the order actually filled.
When to contact support
If the execution price, timestamp, or position history doesn't match what appears in your trading platform, share the position ID with the Deriv support team for review (you can also take a screenshot of the position history to share with our support team). Support can check the order against execution records and confirm what happened on the platform side.
Disclaimer:
The products offered on our website are complex derivative products that carry a significant risk of potential loss. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money. The performance figures quoted refer to the past, and past performance is not a guarantee of future performance or a reliable guide to future performance.
This article is for educational purposes only and does not constitute financial or investment advice.
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