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Stop Loss vs Net Off Order


Guest Unlucky

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Guest Unlucky

Hi guys,

 

I've recently started my foray into forex market CFD's. One of my favourite currency pairs is GBP/TRY, but there always seems to be a rather large (3%) minimum stop.

 

I think I understand the difference between a force open order vs. a net off order, the first opening additional positions regardless and the second closing existing ones if they're in the opposite direction. I was wondering if it would be sensible and give some level of protection if I set a net off order in the opposite direction to an open position closer than the minimum stop?

 

For example, if I was to go long at 5.50 the minimum stop would be 5.335. If I was to then set a short order at 5.4 net off for the same size, would that offer some protection?

 

Thanks!

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Guest Unlucky

Thanks , certainly seems to work the way I predicted. Noted a downside being you still need sufficient margin to cover the order.

 

Anyone see any other downsides I might not be aware of?

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GBP /TRY sounds a bit exotic

 

make sure you dont get filled on the stop first and open a new trade later

 

if for some reason you get a gap or something?

 

i dont know exactly how IG handle this?

 

If you are long 100 and stop 98 and a sellshort order at 99 and then you get a gap and price open at 95

where will you be filled and in what order?

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