How do forex brokers handle gaps and extreme volatility?

Answer
During gaps and extreme volatility, normal market quotes may jump from one level to another with no tradable prices in between. Brokers respond by widening spreads, reducing available leverage, or temporarily changing margin requirements to manage risk. Stop‑loss orders may be filled at the first available price after the gap, which can be much worse than the level you set; this is known as gapping slippage. Some brokers offer guaranteed stop‑loss orders for a premium, promising execution at the specified price regardless of gaps. Liquidity can also dry up, meaning large orders might be partially filled or rejected. Understanding your broker’s policies in such conditions helps you decide whether to reduce position sizes, avoid holding over key events, or pay extra for guaranteed protection.

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