How to set Trailing Stop Loss for Shares NOT Spreadbet?

[BPTK]

Hi,

 

I have opened a UK ISA account with IG where I will buy and sell UK Shares.

 

How do I setup a trailing stop on a share so that for example if the share goes up the Trailing stop follows it and then if the share drops to the Trailing Stop level the share automatically sells and locks in the profit?

 

I know I can setup a guaranteed stop loss on a spreadbet within IG but I want to do it with the daily shares and not on a spreadbet.

This is so I can setup the account for non-attendance.

All of the examples given by IG refer to spreadbet on shares. This is not what I want.

 

I believe this facility is availabile on the Australian IG Tool but can't seem to find it on IG UK Tool/Web.

 

Thanks

BPTK

[Guest theshidoshi]

Hi James

 

 

You fully answered my query. Thank you.

 

I am clear on how to "work-around" the trailing stop loss scenarios and use stop losses vs alerts for exiting losing trades or alerting if a stock rallies to lock in some profit.

 

I understand IG uses DMA. Are there any plans to introduce a "trailing stop loss" functionality in the future to automate that process?

 

Regards,

 

TheShidoshi

[JamesIG]

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wrote:

 

 

I understand IG uses DMA. Are there any plans to introduce a "trailing stop loss" functionality in the future to automate that process?

 

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Hi  - so at present there isn't a schedule for adding this. The main reason why we don't at the moment is because the underlying exchanges themselves don't offer the order type, and although I know some brokers offer this by coming in between you and the exchange, this isn't something we have allocated any dev resource too. If this changes I'm sure we'll make sure all clients are aware. 

[JamesIG]

Hi and welcome to IG community.

 

Unfortunately you can't use the same trailing stop options as you do with the leverage side of things. This is because the Share Dealing offering is a DMA (or Direct Market Access) tool which means that all orders are placed directly into the underlying stock exchange. The exchange themselves don't offer this order type and therefore we are unable to offer it. I hope this clarifies things? 

[BPTK]

So this means constant watching to see if the share has gone done by x% and then manually selling - yes?

[JamesIG]

You can set a regular limit order to sell on a share dealing account, however it just can't be a trailing stop. To do this you would already need to have your open position, then you open a new deal ticket to place a new separate order. Select the size and level, and you should be able to place a sell limit order at your desired level. 

 

You would however have to manually 'trail' the stop level periodically. 

[BPTK]

How exactly?

 

I have the IG window open click on the deal ticket but there is no option to add an order.

 

Just:

1) Deal Ticket

2) Edit Book Cost

3) Market Data

4) Chart

5) Compare (greyed out)

6) News

7) Get Info

8) Add to Watchlist

9) Tear off chart

10 Set Price Alert

11) Set Indicator Alert

 

Where is there add Order for Stop etc

 

Thanks

BPTK

[Caseynotes]

Hi ,  I think what James is saying is that if you want to put in a stop loss order all you need to do is open a new deal ticket to place an equal and opposite order at your desired stop level which if hit will cancel your original entry order and therefore close the position.

 

Manual trailing stops that can be moved on a regular basis (such as by the method above, cancel order, make new order) where you can gauge support and resistance levels as well as prior highs and low are far better than a blind auto trailing stop. 

 

[JamesIG]

Yes, so just to clarify you would need to do the following. 

 

1) Your trade is open on the platform (i.e. it isn't a working order or similar). You can leave this trade as the new order sits completely separately. 

2) Open up a new deal ticket. Set your sell order at a specific price and submit the deal. The underlying exchange will have to be open for the deal to register (as per the requirements of the exchange). You will get a confirmation if this is accepted. 

3) You can leave your order on exchange as long as you've submitted a GTC Good Till Cancel order. You can then amend the order level as / when you wish to manually 'trail' the stop. 

 

I hope this helps. 

 

[Guest theshidoshi]

Hi all

 

I am a beginner at IG and I had the same question but with a different angle so I did not want to raise a new topic.

 

I understand trailing stops are not supported.

 

I have two scenarios and I would like to understand how to address both with the same stock position

 

 

Scenario A) A position opened for 100 shares at $1 each. Regular stop loss. Regular profit take

 

1) I need a SELL order of 20% of the position if it hits $120

2) I need a SELL exit trade if it loses 10% (if It dips to $90)

 

 

Scenario B) A position opened for 100 shares. Mimicking a true trail stop

1) I need a SELL order of 20% of the position if it hits $120

2) I need a trail stop-like SELL order to exit trade while locking the profit (if it was up at $120, then dipped to $110 ) rather than wait to dip to 10% below the original order of 100.

 

Would you help explain the above to me and if I can create multiple SELL orders for the same stock to "mimick" trailing stop losses?  I would rather lock in the profit and not manually watch my screen to trail the stop

 

 

Many thanks

 

TheShidoshi

[JamesIG]

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wrote:

 

 

Scenario A) A position opened for 100 shares at $1 each. Regular stop loss. Regular profit take

 

1) I need a SELL order of 20% of the position if it hits $120

2) I need a SELL exit trade if it loses 10% (if It dips to $90)

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In this instance you wouldn't be able to set up two stop losses for the same stock for more than 100% of your holding. Although it's completely up to you, one option would be to focus on the risk specifically first and set your stop order to exit at 90, and a regular alert to notify you at 120. That way if the market comes off you know you don't need to worry about speed in getting out, whilst if the market rallies you know you can login and trade out of the position. 

 

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wrote:

 

 

Scenario B) 

A position opened for 100 shares. Mimicking a true trail stop

1) I need a SELL order of 20% of the position if it hits $120

2) I need a trail stop-like SELL order to exit trade while locking the profit (if it was up at $120, then dipped to $110 ) rather than wait to dip to 10% below the original order of 100.

 

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Not 100% on what you are saying, however I think in this instance you would have to just manually adjust your stop level every time the market moved up.