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Trailing stops and extended trading hours?
Is ChatGPT correct in this response to the following question: >Let's say I have set a trailing stop and during extended trading hours, the price hits that stop and continues below it. What happens when market opens and the price is below my initial trailing stop? Answer: >If you have set a trailing stop and the price hits that stop during extended trading hours, the behavior when the market opens will depend on your broker's policies for handling orders during extended hours. However, in most cases, stop orders do not trigger during extended trading hours unless specifically enabled. Here's what might happen when the market opens: 1. Trailing Stop Not Triggered During Extended Hours: If your broker does not execute stop orders in extended hours, the trailing stop would not have been triggered, even though the price fell below it in after-hours trading. When the market reopens, the stop will remain in effect, and if the price is still below your stop level, the order will trigger at the market open, but it will execute at the next available market price (which could be below your stop level if the price continues to fall). Result: The order will likely execute at the lower price that exists at market open, which may be worse than your original trailing stop level. I have a couple of positions in this situation, NVDA being one of them: https://preview.redd.it/sg25286e5wge1.png?width=593&format=png&auto=webp&s=3b3132910054a6501115a7fc6efa07527fac23e31
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