Stop Loss vs Net Off Order

[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!

[Caseynotes]

Hi , the best way to find out what would happen would be to trial it on the demo platform to give an idea as to what the platform will do as well as how the play will be affected by spreads and margins. Let us know how it goes. 

[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?

[Kodiak]

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?

[Caseynotes]

I was worried about both the spread ( min 20, average 37.7) and the margin, currently 2.5% but about to be raised to ? 12.5% ?  in early July under the new ESMA regulations.