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Guaranteed Stop Requirements


SAE

Question

Hi All,

 

Does anyone know what the Guaranteed Stop requirements are? For example, If I place my 1st trade (on forex pair) for £32 per point and set the Guaranteed Stop to 30, I'm good. If however, I place a 2nd trade on the same pair for £48 per point with a Guaranteed Stop of 30, it fails to place the order. I understand that the Guaranteed Stops are stepped depending on the total pounds per point of the combined trades.

 

Does anyone know what these price thresholds are? Also, what happens with the Guaranteed Stops if I start trading at £128 or higher combined.

 

I hope this all makes sense? I've not been able to find the information within the IG Site.

 

Thanks

 

Simon

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3 answers to this question

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Hi , thanks for the post and sorry to hear you've struggled to find some information you need.

 

Without knowing exactly which FX pair you are looking to trade, I can't confirm for sure why you are failing to place the order, but it is likely due to not adhering to the guaranteed stop spacing for multiple positions or certain values.

 

For example, if you are trading USD/JPY with a guaranteed stop, we can only guarantee JPY 10,000 per point for each stop level, which is the equivalent of around $90, or £70.  Therefore, your first trade of £32/point is within this limit, but once you add another £48/point, this pushes you to a total of £80/point, which cannot all be placed with the same stop level.  This is where you need to space the stops: the first £70 (ish - indicative) can be placed with the usual minimum stop distance of 15 points, but for the remaining £10/point, these need to be at an additional 30 points away in order to be guaranteed.  The minimum distance and spacing should appear on your deal ticket when trying to trade or when you get a rejection.

 

I appreciate this perhaps seems complex, and would welcome your feedback on how we could make it clearer or more transparent.  The reason behind the spacing restrictions is due to perceived market liquidity and volatility, and so we can honour guaranteed levels should the need arise.

 

Please do let me know if you have any more questions or if something doesn't make sense!

 

Thanks,

Hannah

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Hi Hannah,

 

Thanks for coming back to me. If the system knows I have a position open with a Guaranteed Stop then the next ticket I start to open could/should do the following:

 

1. After I set the position size and select Guaranteed Stop, the box should auto fill with the minimum requirement for me to place the position.

 

As it stands now the system doesn't warn you that the Guaranteed Stop level is wrong until you try to place the position. By that time we have wasted time and possibly the opportunity to enter the trade. 

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