Jump to content

GBP USD minimum stop level of 139.053 points


Recommended Posts

Good evening everyone,

My first post from a demo account while I am waiting for the real account to be opened, I have focused on cable as I like both currencies and the market is mostly very active.

Does anyone know why the market should suddenly require a limit stop of139.053 points away from the current market price?

It seems a little excessive to me.

Your valuable knowledge and experience maybe able to explain this to a newbie?

332749858_139.005slimitrequirement.thumb.png.6a6ce614a4b4407fff03e3d72e23d776.png

Link to post
On 04/05/2021 at 07:51, Guest Harith said:

You have selected guaranteed stop.

Yes I am aware that I have selected the guaranteed stop level as I have been for a while in preparation for when the live account is approved, the live account will have to use a guaranteed stop on each trade, which I think is a good idea as it reduces exposure to risk and the margin required as it is a controlled risk as apposed to an uncapped or un controlled risk.

Normally the stop limit on this trade is a minimum of 8 points, in this screen shot it it is set at 30 points which has increased the required margin to $1775, when it is at 8 or 10 the margin would be around $1300.

If I set the stop to 139 points the margin will increase to $17,000 or more, obviously blocking the trade with a $10,000 account fund.

Thank you for your suggestion,  however it isn't because I have selected a guaranteed stop as I normally do.

having given this some thought, I guess if there is excessive price volatility / uncertainty, as there is when the price is at 1.39000 the system sets the GSL very high for protection, the price could easily run away, that being said if it was hit at 139 it would lead to a massive loss, maybe $7000.

 

Link to post
  • 2 weeks later...

A higher than normal spread generally indicates one of two things, high volatility in the market or low liquidity due to out-of-hours trading. Before news events, or during big shock (Brexit, US Elections), spreads can widen greatly. A low spread means there is a small difference between the bid and the ask price.

From google

Link to post

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • General Statistics

    • Total Topics
      15,441
    • Total Posts
      74,009
    • Total Members
      62,389
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Flushdraw
    Joined 20/06/21 17:45
  • Posts

    • So we have 'outbreaks of covid' where no one actually gets sick. We have vaccines 'proven to work' but no actual working out, the vaccine companies still haven't provided complete data sets (still in trials). How would you know anyway when the survival rate was already 99.7% before the vaccines - it becomes 99.8%? Now govt makes law that all workers in care homes must have the experimental jab, and visiting relatives won't? Doubt it. And which profession comes next? Nurses?   Meanwhile how's lockdown going for you? As I said on Friday, you should have gone to Ascot. https://video.twimg.com/ext_tw_video/1406550082007224320/pu/vid/592x1280/mi3o2t3MsZxA5GvK.mp4?tag=12      
    • shocking!!!!!!!!   but not surprised as I was always afraid about stuff getting on to those face masks   
    • 👀  Very interesting article by ZeroHedge on the recent big main stream narrative flip (China lab leak); Why The Davos Elites Just Played The 'Jon Stewart' Card | ZeroHedge ''Now Stewart comes out at this moment to pull his schtick on Colbert’s show to rally the libs to the whole WuFlu, “China Did It To Us” Narrative The Davos Crowd is pushing on us now?  '' ''They’ve pulled out the Jon Stewart card to convince the squishy Millennials that China is our enemy.  Google will now whitewash all references to Ft. Detrick, their October 2019 exercises and all the rest of it.  Remember, Millennials, in general, don’t know anything.  They just Google **** and think they’re informed.''   Here is the comedy show segment (8 min) the article centres on, watch it first.    
×
×
  • Create New...