how does next available price- market execution work?

[12Rounds]

I have seen several times the phrase "next available price" and would like to learn more about how it actually works.

This is associated to market execution brokers I know, but technically I want to confirm if it is one of the below?

1. order SL/TP is triggered, order is send to liquidity for filling and is filled at a different price as that price is no longer available in the market

2. SL/TP is triggered as market price passes the set level, but that actual price is not available, therefore order is filled at next available price

Is one, or both of these correct?

 

[Enivid]

That depends on how your broker defines that. You should ask their support service on what actually happens to your orders.

Anyway, SL and TP are executed differently - SL is always a stop order whereas TP is always a limit order.