Stop Loss's and everything Badddd!

[Bhutugly]

Hello

Was trying to find the answer to these questions on various web sites but had no luck.


I do like the ability to limit my loss and don't want to end up losing more than I have deposited. If I had a £1000 in my account is there any way I can ensure that I only lose £500 on a trade?

I noticed on IG that they let you start at 10p per pip and move to 50p per pip.
Do most spreadbetting sites allow you to use this min stake?

cheers

Ian

 

[coopster]

I do like the ability to limit my loss and don't want to end up losing more than I have deposited. If I had a £1000 in my account is there any way I can ensure that I only lose £500 on a trade?Ian

Yes, calculate you risk before entering the trade and place your stops accordingly.

This is something you should be doing every trade anyway. If you have more than one trade open at a time, then count both as if they are losers to set your stops.

Personally, if my account was 1000, then i would not be looknig to limit my loss to 500 on one trade. My max loss on 1 trade would be say 1% of the 1000, so a tenner.

This is recalculated each time you trade or at set intervals so you should already know if you are getting near your intended limit of 500. It will unlikely happen without you being aware of it.

hope that is not too difficult to read.

 

[Hoggums]

Guaranteed stops - look them up. IG has them.

 

[nunrgguy]

Guaranteed stops - look them up. IG has them.

AFAIK they're an unneccessary expense. They only guarantee to stop you. They don't guarantee that you won't be slipped.

 

[Bhutugly]

Thanks all for the replys.

The bit that worries me is that if i was trading a share price at say £3 per share. I calculate my stop loss should be around £2.75 but what I seem to understand if the price was to drop £2 with out my £2.75 being matched, I would have to pick that liabilty up.

I have I understood this right?

Cheers

Ian

 

[Masquerade]

You mean if the market gaps? That's what guaranteed stop loss is for. Only worth doing if you're really in something speculative or has the potential to go horribly wrong overnight. Long run, it's not worth it if you're doing something on the blue chips/ftse 100 unless you're speculating on trading results/finals etc.

 

[donaldduke]

AFAIK they're an unneccessary expense. They only guarantee to stop you. They don't guarantee that you won't be slipped.

slipped? There is no slippage with Garanteed stops.

You may be refering to 'spiked'.. the spread bet firms can and will spike prices to take out client stops.

 

[nunrgguy]

Read T&Cs very carefully. Stops usually Market not Limit orders with the bucket shops that offer guaranteed stops. Execution and fill price are not not the same thing. Do the T&Cs say the stop is guaranteed to be executed at your price or that you are guaranteed to be filled at your price?

 

[donaldduke]

Read T&Cs very carefully. Stops usually Market not Limit orders with the bucket shops that offer guaranteed stops. Execution and fill price are not not the same thing. Do the T&Cs say the stop is guaranteed to be executed at your price or that you are guaranteed to be filled at your price?

Guaranteed stops (as provided by IG Index, dont know about the other firms) are guaranteed to have no slippage.

You have to pay an extra few ticks spread and there is a minimum distance from your entry point, they are also exit stops only, cant use them to open positions.