What is a market spike?
A market spike is a sudden jump or drop in the price of an asset. These sharp moves usually happen quickly, often during busy market hours, and can be triggered by major news stories – like an economic report, central bank update or political event.
How market spikes affect your trades
Market spikes can impact your trading strategy, especially if you’re using stop-loss or take-profit orders*.
When prices move fast, they might skip over the level you set. This means your position could close at the next available price, not the exact one you picked. That could lead to a bigger profit – or a bigger loss – than you expected.
Because these price changes are a real reflection of what’s happening in the market, we don’t offer compensation for them. We never interfere with pricing or the execution of your trades.
Anticipating market spikes
Some spikes come out of nowhere. But others can be easier to spot, often happening around scheduled events like:
- elections
- company earnings announcements
- interest rate decisions
- economic reports
These events often cause more market movement, so it's a good idea to look at external factors to help manage your risk.
*Stop-loss and take-profit orders are not guaranteed. In fast-moving or illiquid markets, they may be affected by slippage, resulting in execution at a different price to the one you selected.