I have some questions regarding what happens to positions when an artificial price spike happens (that may be due to computer error rather than an actual market event). I am specifically referring to this spike and this event :
Time : 7:13am AEST (Melbourne time) 23/4/2020
Index : FTSE 100 Cash
Description : at 7:13 am FTSE 100 suddenly fell from 5764 to 5263 within 40 seconds. Then it retraced its entire fall suddenly.
What happens to my long positions in FTSE 100 when this occurs?
Will my long position stop losses be suddenly unnecessarily triggered? And then I lose my previously profitable positions only to have FTSE 100 suddenly return to its original price but after the stop losses got triggered for my positions?
Will I be liable for the sudden losses incurred from my stop losses getting triggered (if I set negative stop losses)?
If I didn’t setup stop losses, will my account suddenly go into margin call due to the sudden huge financial loss from the FTSE 100 positions?
I’ve attached exported graphs of that time in case it helps.
Note : All my FTSE 100 positions in my practice account were stopped out by the artificial price spike. I lost all the paper profits from those positions. What would have happened to me if I held real positions in a real account?
Thanks for answering my questions.