How effective is stop limit orders? I checked several brokers' risk exposures, all of them have a condition saying "limit orders may not be filled due to extreme market volatility". IF this is the case, then what is the point of stop limit orders? In case of the swiss franc event, many clients trades were re-quoted due to lack of liquidity and as a result the account is wiped out + negative balances owing to the broker. but the whole point of having a stop limit order is to prevent huge losses related to this kind of market volatility. I'm curious to know how everyone thinks on this issue? btw, i was fortunate that i didn't have any positions open during the news release, but this thing really worries me now.
use leverage with caution...