Jump to content
  • 2

Stop Loss Minimum Distance


Guest Mirko

Question

Guest Mirko

Is there a reason why a large percentage of the shares available to trade have an absurd 2% minimum stop loss distance?

It makes trading on small time frames basically impossible without opening yourself to an unacceptable Risk/Reward Ratio. 

 

Link to comment

10 answers to this question

Recommended Posts

  • 0
On 13/05/2021 at 10:26, Guest IG on MT4 said:

STILL NO ANSWER!???

 

On 30/10/2020 at 19:38, Guest IG is **** said:

Woke up this morning, minimum stop loss is 280 pips, WTF IS GOING ON?

 

Hey all, 

The minimum stop distance is variable and can change. This is due to volatility in the market and our risk teams analysis. We constantly assess the market and adjust minimum distances accordingly. 

With normal stops we put minimum distances in place which we find appropriate for the volatility. If you're trading on a volatile market and put a stop 5pts away you will likely be closed very fast, We don't want traders wasting their money being closed our due to volatility. 

With regards to guaranteed stops we assess them based on volatility but IG are taking on risk when traders open these as we have to take on the loss if the market gaps through the stop. 

If you have any other questions about this please let me know 

Link to comment
  • 0

I imagine it has to do with it being a 'guaranteed' stop on a limited risk account (have just emailed support to ask). Otherwise I see absolutely no reason for a minimum stop distance at all. If I were to monitor the trade manually I could market sell at any price - which is all a stop loss is doing.

Link to comment
  • 0

I trading using the share dealing platform I am trying to do a stop loss for my trades read you can do that putting in a sell order at the price you want to initiate the stop loss. Am I wrong this is what i got online please see below 

Hi  - thanks for your question on share dealing and stop losses. Although you can't specifically add a stop loss on the same deal ticket, you can manually set up the functionality so that when the market moves down, the order will execute to get out of your position. You can also set up a 'limit' to take profit as well. There is a walk through of this below:

 

How to set stop losses on share dealing

 

  1. Lets say you have an open position of 5000 BARC shares which you have bought at 205p.
  2. You want to sell half, or 2500 shares, if the market moves to 180, and then the other half at 165.
  3. You would simply open a new deal ticket and fill it in as follows. 

Stop market sell order for 2500 at 180. The GTC stands for 'good til cancel' rather than just the day order which will be deleted at the end of the trading day. 

Link to comment
  • 0

I'm struggling with this too. All FTSE shares are requiring 2% minimum stop loss making it stupidly risky for day trading. Is this common on the IG platform? If so, is there  a way to get around this? Maybe placing a contra trade at the preferred stop price to net off the original order?

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      21,293
    • Total Posts
      90,935
    • Total Members
      41,412
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    prue
    Joined 07/02/23 14:08
  • Posts

    • Look Ahead to 08/02/23: Oil inventories; TTEF, DIS, UBER and BDEV earnings Oil, tech, and the consumer are set to dominate the markets on Wednesday, with earnings from TotalEnergies (TTEF), EIA data, and results from Walt Disney (DIS) and Uber Technologies (UBER). Angeline Ong | Presenter, Analyst and Content Editor, London | Publication date: Tuesday 07 February             
    • 07 February 2023 Spot Gold The price of gold has extended its pullback from overbought territory over the last week and has found some near-term support at the 50-day simple moving average (50MA) (green line). Our preference remains to look for long entry on a bullish price reversal. A bullish reversal might be considered if we can see price closing above the 1875 level, provided that the 50MA is not broken with a price close below. Should the 50MA level be broken and the price reversal not confirm, 1820 becomes the next downside support target from the move. In this scenario we not looking to short gold but would rather be looking for a bullish price reversal closer to this level for long entry once again. Should either of these scenarios manifest we will update our guidance accordingly with resistance targets and stop loss considerations. Source: IG charts       Brent Crude Oil The bearish reversal off the 8770-level guided in our previous note has yielded a significant decline, although fallen short of the 7760-support target. The price now looks to be rebounding from oversold territory. Traders who have been short might consider this an indication to exit their trades. The longer-term trend bias is still considered down and should a bearish price pattern emerge before this level, new short entries might be considered. In this scenario a close above the 8770 level might be used as a stop loss consideration, while targeting a move back towards the support low at 7760 once again. Only on a move / close above the 8770 level would the longer-term trend bias be reassessed, and long trades reconsidered Source: IG charts         Our weekly technical report is compiled by in-house senior market analyst, Shaun Murison.
    • Hi, the basic package has a 15 minute delay.
×
×
  • Create New...