Hargreaves-Lansdowne ISA

HenryPaul1960

On 14th Jan 2025 300 shares were automatically sold from my holding of PHGP (WisdomTree Physical Gold
This in response to a Stop-Loss that I had set in the ISA at a price of 20100.00
The shares were sold at a price of 18364.00 (would have been a loss of £6k approx) and although that this was subsequently amended (after my complaint) to 20149.00 the net result was that I have sold shares that I did not want to sell at an initial loss of £900 to the market price
Today the shares stand at 20700 bringing the nominal loss to £1800
What triggered the sale was explained to me as "gapping"! An ETF is apparantly vulnerable to market price dropping while the market is closed??
My query is simply - How did the price drop due to "gapping" during working hours? Does the market close at Lunchtime?

wmb194

HenryPaul1960 said:

On 14th Jan 2025 300 shares were automatically sold from my holding of PHGP (WisdomTree Physical Gold
This in response to a Stop-Loss that I had set in the ISA at a price of 20100.00
The shares were sold at a price of 18364.00 (would have been a loss of £6k approx) and although that this was subsequently amended (after my complaint) to 20149.00 the net result was that I have sold shares that I did not want to sell at an initial loss of £900 to the market price
Today the shares stand at 20700 bringing the nominal loss to £1800
What triggered the sale was explained to me as "gapping"! An ETF is apparantly vulnerable to market price dropping while the market is closed??
My query is simply - How did the price drop due to "gapping" during working hours? Does the market close at Lunchtime?

Yes, there's 12pm auction but prices can lurch around at any time. It could be there was a massive sell order or some piece of news moved the price for gold. This is one of the risks with stop loss orders, that you might get a lower price than what you'd intended.

Hoenir

You've discovered the fundamental flaw in relying on a Stop-Loss.  During the trading session market prices for individual stocks can rapidly bounce around. Although the final net movement for the day can ultimately be minimal. The Stop-Loss is automatically triggered by default immediately the price falls below.  Not a tool to use without carefull monitoring in my experience. Certainly not normally a leave and forget trade. 

Alexland

Build an investment strategy where you have enough confidence in the long term value of the assets you own to never need a stop loss.

HenryPaul1960

Appreciate the commentary - Every day's a schoolday!