re: trading in high volatility - worse case scenario

  1. 2,739 Posts.
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    Let me preface my question first.
    I know very little about forex - not enough to start any trading, put it that way.

    I know the forex markets are very liquid and there's little chance of gapping occurring, but ..
    I was still wondering what happened let's say during the Fukushima disaster or on 9/11 (2001) in the USA - when the yen moved violently by a whole yen or two and the USD moved by a whole cent or 2 in just a day.
    That's the equivalent of 10,000 - 20,000 pips in a day in the USD.

    So taking the trading during 9/11, as an instance ... (I'm sorry for bringing up this grim event ) ..
    Let's say in the case of the USD, if a trader had a stop set at 250 pips on each of his trades - would that have guaranteed that the loss of each one of his trades would have been limited to 250 pips - even on this freakish day and in the context of the 20,000 pip move?
 
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