well...
if there is liquidity at your SL level, you should get filled and the SL executed. but if your broker doesn't have access to enough liquidity (not enough LPs (liquidity providers) or LPs of poor quality), doesn't have the proper technology in place on the backend, or is simply dishonest or sloppy, or both, then chances are you SL will either not be executed at your level and with significant slippage--how's a 1000+ pips later (not a typo--one thousand pips--happened to some people i know) for slippage? insane.
so best advice is first not to use leverage. for ex, in case of a 1,000 pip loss on a $10K account with 1 mini lot, that would be a $1000 loss or 10%. not good but not a disaster either. similarly, on a $100K account with 1 standard lot, that would be a $10,000 loss. either way, you'd still be in business.
2nd best advice is to always go with broker that has not just good reputation, but very good reputation. but even that is no guarantee as things change over time and no one tells public. at the end of day, it's still the wild west in financial market land, unfortunately.
and finally, everyone who is shock due to today's event, take at least a week off from trading and news. you need to wash your brain, recover from the psychological stress, relax, find your center again before going back to the market. even more so if you are feeling depressed.
thankfully, i lost a little money, but still i feel as if i got trampled by a wild herd of buffaloes with mad buffalo disease! and i do feel blue, and pissed off at the market in general and at the SNB in particular. i also want revenge (very fuc*%#g dangerous that!) but market will only laugh in my face if i try and then you can be sure i will lose a lot more. so put on indian yoga music with beautiful songs sung in sanskrit (or Alexandrov Ensemble, that's for sive
), take deep breath, aaahhhh.... take deep breath again.... aaaahhhh.... take deep breath again.... or just go find girl (or man, not judging here
) and have good time.
all the best.
In cases like that, jumps that are created artifical by major events that influence nations economy, what can a trader do to protect himself?
Do SLs even help in cases like that? There was a void of almost 1000 pips practicaly in an instant. If one puts his stop order in this void and something like this happens, where does your order actually get filled?
There is no money management technique that can save your account if you are positioned against this market. What is there to do in cases like that even if you have SL in place?