Jump to content

If you use tight stops is negative slippage a big problem

Recommended Posts

Hi, I've not encountered many issues at all with slippage.  Sure it happens at times of huge volatility, so if you're Day Trading off the Bell, it's more likely to happen then.  Also, Too Tight of a Stop can get you out prematurely more often than not while Spread Betting as the Spread can be considerable and variable.  If I place a Stop it's usually 2x the Spread OR 2x the Spread below or above the SR lines.  However, this being said, it depends on your Strategy also.

In 18 months of Day Trading or chart analysis, I've encountered slippage once on an Uber Drop last year.

  • Like 1
Link to comment

Ok thanks, my stop is at least 2x the spread but never much more than that.  Slightly different question but does the spread that applies when you open a trade then stick or if the spread then changes while your position is open this new spread applies to your open trade? If the latter that seems unfair.

Link to comment
36 minutes ago, u0362565 said:

Ok thanks, my stop is at least 2x the spread but never much more than that.  Slightly different question but does the spread that applies when you open a trade then stick or if the spread then changes while your position is open this new spread applies to your open trade? If the latter that seems unfair.

It's a good question that I've not found and answer to.  I remember vaguely last year a stock went from 3 to 15pts spread!!!  It was a Bad Day.  As I was getting in and out of the trade, i was being stopped out immediately because of the fluctuation...

Edited by nit2wynit
Link to comment

i dont think spread is a component that sticks to every trade, that a new idea for me. the bid/ask at the time of closing will apply, unlucky if it widens like out of hours etc.

i don't think the big banks etc cares about fairness for us retailers in trading. looking at ways with their HFT and running stops and what not to reduce burden and fill their coffers in every possible way

Link to comment

hi,everybody, I had a very bad experience with slippage last month.  I was short on NOKSEK pair  and I was stoped out with a whooping 737 pips spread on Sunday late evening when the market opened. Usual spread on NOKSEK pair is 150 pips. I fully understand that in volatile times spread can go double, so in this case spread could become 300 pips; but I was not expecting spread to become almost five times that of a normal spread which is 150 pips.I suffered a big loss on this trade, I feel cheated and I feel as if  "IG"  was hunting for my STOP.

  • Like 1
  • Sad 1
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
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 25/09/22 10:27
  • Posts

    • Hey @pravid17 I hope you're well.  In the leveraged trading industry there are brokers who don't hedge client's exposure and brokers (like ourselves) who do hedge client's exposure.  In a perfect world the exposure of short clients would net off the trades of long clients however this is not always the case. Our hedging model allows us to take an exposure in the underlying market for the remaining exposure which doesn't offset - This way we don't need to hedge every trade, worry about profits of our clients and results in lower costs for hedging in the underlying market (commissions, interest etc.). So say 60% of IG customer exposure in the ASX was long and 40% of exposure on the ASX was short. The 40% would net each other off but there's a remaining 20% of customers who need to be hedged to cover their positions. We go into the market and hedge this.  We make our money primarily through our spreads and overnight funding  with other fees making up a small proportion of our revenue. I would like to remind also that IG is regulated by several bodies globally, including top-tier regulators like the UK's FCA, Germany's BaFIN, Australia's ASIC - This should be quite reassuring from a dealing execution and transparency perspective.  I hope this helps, let me know if you have any other question 
    • A survey from Reviews.org, which featured 1000 Americans, found that as many as 1 in 4 US subscribers may quit the service in the next year.    Jeremy Naylor | Writer, London | Publication date: Friday 23 September 2022  There was an interesting breakdown, but the main reason was affordability. Only 18% said they would move to a cheaper competitor. IGTV’s Jeremy Naylor looks at the numbers. Netflix subscription woes Netflix Inc (All Sessions) could be in for a rough time ahead over the next 12 months if a new survey is anything to go by, which was conducted in the US. Out of the 1,000 adults that took part in this survey undertaken by Reviews.org, around 25% of those that were covered said that they would be cancelling their Netflix subscription within the next 12 months. Now, it says with that 25% of US subscribers to Netflix considering leaving, not to join a competitor, but mostly because of pressures on household bills. This is how it is split: rising cost of subscriptions - 40% inflation - 20% a lack of content - 22% spending more time on the services of others - 18% So you can see, a minority said they were going to other services, such as those provided by Disney Plus or Amazon Prime. The cost of Netflix has risen dramatically this year as its basic plan increased by 11% in January and its other plans by 20% to 25%. Now these were the first price increases for three years, so that itself is relatively new for a lot of subscribers. Netflix share price Let's take a look at the Netflix share price. You can see on the far left hand side of this chart the COVID lows at $290.39. We saw a whacking great increase there of 141% to the top and the record high in Netflix shares back in November 2021. And that was when subscriptions were rising, people were paying more for their services, and it was all humming beautifully. And then all of a sudden people started questioning the numbers of streaming services they were undertaking with some deciding to withdraw from Netflix. All of a sudden the big drops started coming through with profit warnings and sales warnings. We've recently hit a new low of $162.50. Since then there has been a little bit of an increase. We're currently trading at $232.75, but we are down by a margin of 1.75% in today's session, which reflects this news that we could well see a relatively large drop in subscribers for Netflix in the US within the next 12 months.
    • Market data to trade the week of 26 September: Nasdaq; NXT From the economic calendar next week IG technical analyst, Axel Rudolph, picks up on a short trade on the Nasdaq around US inflation data. Meanwhile, despite another light week of corporate data, Axel picks out the chart of Next plc (NXT) as an interesting trade to think about.          
  • Create New...