Slippage/gapping

[Nobber]

I have a demo account with a SB firm. I trade the indices. I am paranoid about gapping. I have this fear that I set a SL, but the market jumps right over it and down another 1000 points or so and my account is annihilated and I owe them money!!
How realistic is this? What is the highest recorded slippage on the Wall st rolling daily or the FTSE? I think the GSL is a bit of a rip off.

 

[maxima]

if your SB provider will sense a move is going too deep they will gap the market on their platform. so the information on the Dow wont really help.

if you afraid of very big gaps you should trade larger stuff. Like sp500 or even better fx where gap has much smaller probability to occur instantly.

However must tell you - if you want to start your trading career spreadbetting Dow you will lose your account without gaps all by yourself.

 

[Phantom666]

I have a demo account with a SB firm. I trade the indices. I am paranoid about gapping. I have this fear that I set a SL, but the market jumps right over it and down another 1000 points or so and my account is annihilated and I owe them money!!
How realistic is this? What is the highest recorded slippage on the Wall st rolling daily or the FTSE? I think the GSL is a bit of a rip off.

You don't like gaps and slippage? Tough balls, they're a fact of life. You won't get them if you don't trade. Otherwise, grow some f*ckin' stones.

If you're worried about the broker screwing you, don't go through a bucket shop, use a proper broker. Then you know that gaps / slippage are the ones that are just occurring in the market (although the "bucket shop are screwing me" thing is way overdone, but you need to feel comfortable to trade well).

Read this article, you might find it enlightening:

http://www.darkstarforex.com/post/2011/04/13/The-Stucture-of-the-Forex-Market.aspx

By the way, I like your username. Not as good as C0cker, but still nice.

 

[Nobber]

Thanks for the feedback.
Phantom, please can you advise me on how to "grow some stones" that sounds really interesting. My gonads must be horrifically tiny compared to a real man like yourself. Thanks pal.

 

[Nobber]

if your SB provider will sense a move is going too deep they will gap the market on their platform. so the information on the Dow wont really help.

if you afraid of very big gaps you should trade larger stuff. Like sp500 or even better fx where gap has much smaller probability to occur instantly.

However must tell you - if you want to start your trading career spreadbetting Dow you will lose your account without gaps all by yourself.

What is so nasty about spreadbetting the the Dow maxima? Does it bite?

 

[tomorton]

Don't over-worry about the gaps Nobber. If you're trading the Dow, it doesn't really gap, see an OHLC bar chart, but anyway you will see that the SB tick chart runs all night, even though the NY Stock Exchange itself has closed, so the Dow itself is not changing. But the SB's market based on the Dow continues to run. e.g. the Dow closed on Wednesday at 11613, but the SB market continued to track it to a high of about 11678 around 0330, down to 11544 around 1000 (before the NY open). Any stops in this range would have been triggered before today's open. So usually the effect of this overnight period, if any, might be to stop you out at a price the market itself never touched during actual NY trading. Very annoying.

Don't worry about Dow trading being dangerious, it's like anything else, just make sure you risk only a small percentage, say 2-5%, of your account per trade. Remember £1 per point on the Dow is worth about £2 per point on the FTSE100.

 

[maxima]

What is so nasty about spreadbetting the the Dow maxima? Does it bite?

sorry mate but you an idiot. I gave you real advice (small but to the point). and you only see people biting your ar$e..

if you were abused in the childhood thats not my problem. sort it out yourself.

 

[Nobber]

sorry mate but you an idiot. I gave you real advice (small but to the point). and you only see people biting your ar$e..

if you were abused in the childhood thats not my problem. sort it out yourself.

Damn. I was hoping you could help me with those damn paedos who butt raped me when I was a kid.
Oh well, I will keep looking. Thanks for your"Real Sh*t" advice you nobber!!!!

:clap::clap:

 

[maxima]

Last time I checked nobber was you

 

[shadowninja]

Dunno if it's been posted or not but slippage will only hurt if you go in big and don't allow for slippage. For instance, you have a £1,000 account. You buy Euro with a 10 pip stop, £100/pip. If it slips by just 1 pip, you owe the SB co £100. If it slips due to news or holding over the weekend and goes 50 pips through your stop, you owe the SB co £5,000. As always, greed will be a trader's downfall,.