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How do stop losses work overnight? Gaps, trading hours and fills

A stop stays on your broker's books overnight only if it's a "good 'til canceled" order, and it can only trigger when that market is trading. If price opens past your stop, you're filled at the next available price, which can be worse than you planned.

Beginner guide · 7-minute read · Updated 2026-10-21

The short answer

A stop loss works overnight if two things are true: the order is still active (a GTC order, not a day order), and the market is open for trading at that hour. If price gaps past your stop, the stop triggers at the open and fills at the next price, not at your stop price.

So a stop limits risk overnight, but it doesn't guarantee your exit price.

Step 1: is your stop still alive?

When you place an order, you pick how long it lasts. That's called time in force.

• A day order expires at the end of the trading day. Your stop is gone overnight.
• A GTC order (good 'til canceled) stays until it fills or you cancel it. Many brokers still cancel GTC orders after a set number of days, often 60 to 180.

If you hold overnight, check your stop says GTC. See GTC order and Day order.

Step 2: is the market trading?

A stop can only trigger when there's trading. That depends on the market:

For stocks, this is the big one. At many brokers, standard stop orders don't trigger in pre-market or after-hours, even if the price passes your stop then. They trigger at the 9:30 am open. Check your broker's rules.

Step 3: what a gap does to your stop

A Gap is when price opens far from where it closed, with nothing in between.

That extra loss is called Slippage. Gaps are the main way a planned loss becomes a bigger one.

Stop-market vs stop-limit overnight

There are two kinds of stop:

• Stop (stop-market): when triggered, it sells at the next available price. You get out, but maybe at a worse price.
• Stop-limit: when triggered, it becomes a limit order with a floor. You won't sell below your limit, but if price gaps below it, you may not get out at all.

After a gap down, a stop-limit can leave you still holding a falling position. That's why many traders use stop-market orders for protection. See stop-loss vs stop-limit.

Why gaps happen

The market closes. The news doesn't. Common causes:

• Earnings reports, often released after the close or before the open.
• Economic news, like CPI or the jobs report at 8:30 am ET.
• Global events while US markets are closed.
• Weekends, which add two full days of news. See weekend gaps explained.

How to plan an overnight trade

1. Know the earnings date. Many traders avoid holding a stock through earnings, or hold a smaller size.
2. Size for a gap, not just the stop. Ask: "if this opened 2 stop-distances against me, could I accept that?" If not, cut the size.
3. Use a GTC stop-market order, and check it after the open.
4. Check the calendar for big reports before the next session. See how to read an economic calendar.
5. Avoid high leverage overnight. With leverage, a gap can take more than you planned, and in some accounts more than your balance. See what happens if you lose more than your account.

What about "guaranteed stops"?

Some brokers outside the US offer guaranteed stops for a fee, which close you at your exact price even through a gap. They're mainly on CFDs, which aren't offered to US retail traders. In the US, plan as if your stop isn't guaranteed.

Swing traders: overnight is part of the deal

If you hold trades for days, gaps will happen sometimes. That's why swing traders often use wider stops from the daily chart and smaller sizes, so the money at risk stays the same. The position size calculator keeps that math simple. See swing trading for beginners.

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