Multipl stops?

[cn43]

I am new to spread betting, have a demo account and have worked through IG’s courses. I am interested in medium sized companies – including trading within 1 day.

An example of my problem is that on Friday, a GSLO had to be set 20% away from the trade price on Fevertree Ltd. That is useless on its own as I would need to be expecting a 40% profit to achieve a 1:2 risk/reward ratio. Even the usual 5% GSLO distance for shares may be too far in many cases – implying a 10% upside during the day. Setting a normal stop at my desired distance seems to solve matters whilst still having the GLSO as a backstop to gapping. How do I set a guaranteed stop loss and also an ordinary stop at a level nearer to the entry price? I can’t see how to do it on the platform and the idea is apparently not covered in the courses.

Also, I take it if the normal stop is activated the GLSO would automatically be cancelled and vice versa. Is that right?

Finally, when I open a live account, it appears I have to always set a GSLO. If so, again, will I be able to set a closer normal stop as well? I realise I could go with the GSLO and manually close the trade at my desired stop level – but that would mean me having to stare at a screen for hours and seems to make no sense as that is exactly what a normal stop is for.

I think I must be misunderstanding or missing something. Thanks for your help,  

[Caseynotes]

3 hours ago, cn43 said:

I am new to spread betting, have a demo account and have worked through IG’s courses. I am interested in medium sized companies – including trading within 1 day.

 

An example of my problem is that on Friday, a GSLO had to be set 20% away from the trade price on Fevertree Ltd. That is useless on its own as I would need to be expecting a 40% profit to achieve a 1:2 risk/reward ratio. Even the usual 5% GSLO distance for shares may be too far in many cases – implying a 10% upside during the day. Setting a normal stop at my desired distance seems to solve matters whilst still having the GLSO as a backstop to gapping. How do I set a guaranteed stop loss and also an ordinary stop at a level nearer to the entry price? I can’t see how to do it on the platform and the idea is apparently not covered in the courses.

 

Also, I take it if the normal stop is activated the GLSO would automatically be cancelled and vice versa. Is that right?

 

Finally, when I open a live account, it appears I have to always set a GSLO. If so, again, will I be able to set a closer normal stop as well? I realise I could go with the GSLO and manually close the trade at my desired stop level – but that would mean me having to stare at a screen for hours and seems to make no sense as that is exactly what a normal stop is for.

 

I think I must be misunderstanding or missing something. Thanks for your help,  

 

Hi, the guaranteed stops are more of an account protection measure in extreme volatility, most of the time an ordinary stop is sufficient, if the GS has risen to extremes you need to be asking why.

You can't have 2 types of stops at the same time, IG don't seem too keen on taking on all of the risk themselves.

Only 'Limited Risk' accounts require all stops be GS. You can set alerts for levels where you want to manually exit the trade.

[cn43]

Thanks for your reply Caseynotes and for the advice about alerts. I suspect that as a newbie I can only get a limited risk account so will probably have to use the GSLOs anyway. It's a shame I will have to watch the alerts and manually close trades given an ordinary stop should just be a mechanical process ideally suited to being automated rather than me having to be around to press a button. Anyway, thanks again, cheers