I always set my stop losses at around $50 but recently, for 2 trades on Bitget, I lost considerably more that my stop loss was set at. Both trades were in ‘USDT-M Futures’ and both were the PI-USDT pair. In one trade I lost $150 and the other I lost $87…
I used to trade on Bybit and this kind of thing never happened there so I’m just trying to establish why this happened on Bitget? Is it because there are not many people trading ‘PI’ on Bitget and therefore, if I’ve have been trading one of the bigger coins like BTC or ETH, it wouldn’t have happened? Or is there an entirely different reason?
First of all, if you will read how the stop losses work before using them, you would've already know that this can happen.
Stop loss means that it will trigger a sell whenever the price hits your SL level, but, what if at the same level, there are BILLIONS of dollars in stop losses?
Obviously the market will breakdown and liquidate most of the people or stop them with a slippage because not everyone can get into the same prices.