Volatile market conditions

What you should consider when the markets are volatile in order to minimise your losses

Stop losses

Stop losses trigger and automatically sell an investment if the bid price falls to, or below, a price set by you.

When the markets are volatile, stop losses could be triggered at prices way below the level that you’ve set. This can happen when prices fall quickly through that level. It may be safer to consider removing stop losses during especially volatile market conditions.

If you would like to edit any existing stop losses you have set up, you can do this by signing in, and clicking “Pending investments” from the “My account” menu.

Volatility safeguard

If you don’t want to remove your stop losses, you can set up a volatility safeguard to help protect the most volatile investments in your account.

This tool prevents stop losses or limit orders from triggering when an investment’s bid/offer spread is wider than 5%, which can happen during periods of volatility.

A volatility safeguard can be used when an investment’s mid price is 20p or more.

Buy limit orders

When you set a buy limit order, it will trigger and automatically buy an investment if the offer price drops to, or below, a price set by you.

For those actively seeking to benefit from volatile markets, a buy limit order may be worth considering. It may allow investors the potential flexibility to pick up an investment at a significantly reduced price, compared to normal market conditions.

You can read more about setting up limit orders on our dealing guide

Price alerts

You can receive an email alert (or highlight in your account) if an investment rises or falls to an offer price of your choice.

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Please get in touch with our Dealing team.

Contact us

01296 41 42 43 (8:00am-4:30pm weekdays)

Write: The Share Centre, PO Box 2000, Aylesbury, Bucks, HP21 8ZB