Giant minimum stops

[Guest 926Silver]

Trying to trade certain instruments - GBP/USD, anything against swizz Francs, I am being required to enter with a huge sized stop loss.

 

This is highly frsutrating, and means I am unable to enter what look like good trades as the risk reward is rubbish.

 

Why is the guaranteed stop set so high?

 

Getting annoyed with IG on this.

[Guest PandaFace]

The Franc is a manipulated currency and can therefore move loads when the government makes announcements and monetary policy. A guaranteed stop offered by IG can’t be bought in the market either so they are basically offering it as an insurance and charging that stop premium if it gets hit / triggered. As with all insurance because there is more risk the distance is higher to reduce the likelihood of it being needed or used/hit.

 

I get what you’re saying about it being a long distance away, but I guess you need to think of either doing a different size, or a different FX pair. Cable is only 8 points away at the moment for example.