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# Rejected: Controlled Risk stop must be placed in increments

## Question

I was trying to place an limit order and got this message.

Can someone explain to me what it means?

I am also on how to stop is calculated. It is stated at 5.5G, which ended up with SD\$55000 that caused the control risk stop of \$SGD12000.

What does the G mean?

What does it related to the stop distance of 5%? It appears that 5.5 is the minimum.

How does it work if i want to buy 10000 of shares at buy price of 1.11?

Do i have to use multiple limit orders?

Where can i find more information on maximum risk control of a particular stock?

j3r

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You can have your first size of S\$12,000 5% away and then each additional side over this needs to be a further 2 points away. So if you had say 15k, you can have 12k 5% away and then the remainder 3k 5%+2 points.

You prob need to post separate LO cos you need different stop levels.

Thanks PandaFace.

Can you elaborate more on the addition side with an example?

So it means i need to have two limit order?

Quote

You prob need to post separate LO cos you need different stop levels.

Noted.

Sorry what do you mean ‘on the addition side’ ?

By the way - G basically means it’s a guaranteed stop rather than just a regular stop.

Thanks for the link. I have gone through the materials before i posted.

Pardon me. I'm still confused about the guaranteed stop.

If i buy 10000 shares at SGD\$1.11, it will cost SGD\$11100.

How was the SGD\$55000 calculated?

On 9/1/2018 at 10:35 PM, j3r said:

Thanks for the link. I have gone through the materials before i posted.

Pardon me. I'm still confused about the guaranteed stop.

If i buy 10000 shares at SGD\$1.11, it will cost SGD\$11100.

How was the SGD\$55000 calculated?

You can work our your margin requirements manually using the the larger figure of the two calculations below:

1. Value per point x stop distance (in points) + guaranteed stop premium
2. Number of shares x share price x margin percentage (%)

You can work out the above using the data which you have on the deal ticket information section (as well as being automatically calculated on the deal ticket itself). I assume givien the above you'd be looking at a margin factor of 50% or so?

On 9/3/2018 at 5:35 PM, JamesIG said:

You can work our your margin requirements manually using the the larger figure of the two calculations below:

1. Value per point x stop distance (in points) + guaranteed stop premium
2. Number of shares x share price x margin percentage (%)

You can work out the above using the data which you have on the deal ticket information section (as well as being automatically calculated on the deal ticket itself). I assume givien the above you'd be looking at a margin factor of 50% or so?

Thanks James. I'm still looking at how the controlled risk is calculated. For example the following:

It does not allow me to go above controlled risk of \$SGD12k.

Correct me if i'm wrong, i believe i can't exceed the notional value of SGD\$12k

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