What is the failure mode for a take-profit order on the exchanges?
What is the failure mode for a take-profit order on the exchanges?
This is a general question about strategy around take-profit orders and depth.
Take-profit orders on Whaleclub are guaranteed to execute at the price you set as long as the market doesn't gap (for example, between sessions).
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I don't understand the failure mode here. If the market gaps, then what happens? Does the take-profit value have to be manually reset? It doesn't sound like a peaceful sleep at night if your profit-limit might not execute if the value tanks.
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Also, how can the order be guaranteed to execute? If a take-profit order is so far down the order queue at that price that it has no buyer, then what happens? Am I understanding depth properly, or do the exchanges intervene somehow?
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