When I place a trade I set a stop loss and risk 1% of my capital. If the price moves towards my stop loss that percentage increases and I lose more then I want to if I’m stopped out.
e.g
My risk is say £800 but when I’m stopped out it costs me £1000
Why is this?
The usual reason would be failing to allow for the spread. The spread is the difference between the ask price and the bid price on the market you have a position in, i.e. the buy price and the sell price.
With a bit more information on the trade it would be possible to be more specific.
When the market moves fast, your stop might skip, costing more.
I think it might happen because of slippage.