Say I want to set an Sell Stop Order on one of my investments because I want to cut my losses if for example the market crashes or the company i invested in is going bankrupt. In one of those worst case scenarios the price is very likely to gap down, and I want to know if the Order will turn into an market order if the price gaps over below my selected price is supposed toconvert the Stop Order to an Market Order, or if the bid has to exactly match my price in order for the Order to convert to an market order so I will guaranteedly have my losses cut even if it gaps like hypothetically 5% - 10%, a few dollars over my set Stop Price.
If the bid is at say 17 and your stop loss is at 12 if it gap downs to 10 it will convert to a market sell.
It’s not a case it has to be bang on 12 exactly to trigger. Stocks don’t move in exact increments so would be lucky to get it 12 on the dot.