Jump to content

Stop loss


Recommended Posts

I am trying to get to grips with stop loss. My account is £2,500. I buy/sell at 1.0000 with no stop loss. I trade at a size of £5. At what point would I be stopped out if there was a large spike?

If my trade size was £1 would this be 5 times more?

 

Link to comment
15 minutes ago, Caseynotes said:

Hi @Cedric,  if you don't have a stop loss in place you won't be stopped out at all, if there is a large spike you would get a belated margin call by which time your account is probably at zero.

Thanks for your speedy reply. If I buy/sell at a price 1.0000, size £1. At what price price would I get a belated margin call. I am trying to find out what the length of that spike (in pips) would have to be relative to the account size and trade size. 

At the moment I have a Demo a/c and a month ago I inadvertently increased the capital to £999.999.00. As you probably know a few weeks ago there was a larger than normal spike and I wasn't stopped out. This is why I am now trying to understand why.

Link to comment

@Cedric, haha yes, I did the same thing, somehow ended up with a demo account of £10 million and you are right it spoils any attempt to keep it real. You can't reset it so the thing to do put some massive losing bets on and get it back to zero and then refund it again to the amount you want and start over.

So from there when you fill out the deal ticket the margin requirement for the bet size and account size is auto calc'd on the deal/order ticket for you. The amount of risk (your stop size x bet size) is also auto calc'd for you as well.

For a £2,500 account with a £5/point bet price would have to move against you 500 points to blow the account but the margin call would kick in at £1,900 (around 380 points) but this calc is dependent on the price of the asset (which you gave at 1.0000) so if you shorted and price went to 1.0380 the bet would be shut down and you would be left with £600 if you didn't add to the account on the margin call.

That's my 'back of a **** packet' calc so may well be wrong so best use the auto calc on the ticket.

1/ Always use some kind of stop loss.

2/ If you are worried about big spikes stick with a guaranteed stop loss.

2/ Keep a good amount of lee way between the margin requirement and account size for any trades.

Link to comment
On 11/01/2019 at 15:34, Caseynotes said:

Hi @Cedric,  if you don't have a stop loss in place you won't be stopped out at all, if there is a large spike you would get a belated margin call by which time your account is probably at zero.

Can you direct me how to set a stop and loss and what it is fully about. I am new to this and have only done one trade. I have also set a limit order to buy some FAR shares for when the market opens at tomorrow. When I set the order for tomorrow, I was only given the option for a limit day order at one price. There was no stop/loss option

Link to comment

@gcarter & @elle,  I suspect carter is referring to the shares dealing platform which currently doesn't have a stop loss facility incorporated as does the spread bet and cfd platforms, though the expected release of the new shares platform should resolve that when that may be.

Essentially a stop loss is an order in the market which is the equal and opposite of the entry order and so cancels out the position.

So if you have entered a trade of x amount you need to manually place a stop order of equal amount at the price level you want to exit that trade should price reverse and go against you.

Not sure about FAR shares and only limit and one price, doesn't sound right, can you give ant more info?

 

 

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      20,046
    • Total Posts
      88,077
    • Total Members
      69,037
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    leothayyil
    Joined 29/09/22 16:55
  • Posts

    • Asian markets headed lower after yet another miserable session on Wall Street. Tech stocks were hard hit following the downgrade of Apple stock by Bank of America, and in Japan the Nikkei lost over 2%. Losses in China were much more limited, as the official PMI figures from Beijing helped to provide a steadying influence. Nonetheless, stocks globally remain under pressure, and this seems unlikely to change for the time being. In FX markets, news that the UK prime minister will meet the head of the Office for Budget Responsibility prompted a further recovery in sterling against the dollar, with the pound recouping almost all its losses against the dollar seen over the past week. After German inflation yesterday today sees the release of eurozone inflation figures, along with US monthly personal consumption price data, the Fed's preferred inflation measure, which is expected to see a 6.1% year-on-year.   
    • For more up to date news on how markets will open, the latest earnings and economic news, watch IGTV live in the platform at 07:30am UK. Today’s coverage:   Indices: Global declines continue Europe expected to open down FX: USD remains the big story and a retracement continues – look for  better point to buy the dip. Despite chaos GBP looking at best week in 2yrs   Equities: NKE fell after poor earnings last night. DIS regroups Florida parks after hurricane Ian. META warns of restructuring Commods: Gold up for a 4th day. Oil drifting after Wednesday’s big gains. Lumber another new lower low. Aluminium up after LME proposal to limit Russian aluminium on its books      
    • Stock Market SP 500, NASDAQ 100 NDX, Russell 2000 RUT. Dow Jones Industrial (DJI) Elliott Wave Technical Analysis and Trading Strategies. US Markets News Today:S&P 500 closes at new 2022 low, as Apple sells off Elliott Wave Market Summary: The current trend down into Wave (1) is not completed, any move up is a corrective bear market rally Elliott Wave count: (ii) of v) of 3 of (1) Day / Trend Trading Strategies: Day traders look to short Wave c of (ii) Video Chapters 00:00 S&P500  14:08 NASDAQ 100 (NDX) 15:35 Russell 2000 (RUT)  20:17 End. Thanks for supporting! Analyst Peter Mathers TradingLounge™     
×
×
  • Create New...