Jump to content

Guranteed Stop vs Normal Stop

Recommended Posts

Hi All,

I a newbie for this trading. After go through couples of trading materials.

I found Guranteed stop is the ONLY option in Live account but Normal Stop at Demo Account.

So will we possible have normal stop in our live account since we trade in smaller volume trade instead.

As the guranteed stop premium is such a waste by paying extra when it hit the stop limit.

And it din't match with my risk reward ratio as rational commonly set at 1:2 ?

By applied guranteed stop it would become 2:1 reversely...

As I believe, there no perfect trade can win every single trade in the world.

Share this post


Link to post

@LittleAngel, a guaranteed stop loss order guarantees to close out your trade at the price level specified, irrespective of whether the market gaps. Guaranteed stops ensure that no matter how volatile the markets, your risk will never exceed the level you have chosen.

I know that IG have guaranteed stops which cost you an extra few ticks/pips in the spread. I can understand this in commodities or very volatile markets. I am not so sure on large caps (FTSE 100) or more less volatile markets.

Share this post


Link to post

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Member Statistics

    • Total Topics
      6,067
    • Total Posts
      26,616
    • Total Members
      33,736
    Newest Member
    nigelbradley
    Joined 20/01/19 19:39
  • Our picks

    • What's wrong with predictions?
      Join the IG conversation on Community. "There's lots of talk about 'the smart money' banks, institutions, pension funds and the like but not much about the others side of the coin, 'the dumb money', why is that - it's because they just aren't influential to the market. The collective size of the dumb money is dwarfed by the big money to the point of being irrelevant."
        • Great!
        • Like
      • 3 replies
×