Everything posted by Msim224
Wish I had seen this earlier, was wondering why there weren't more posts about it. The Minimum Stop Distance is ridiculous, I'm surprised so few are bringing it up, defeats the whole purpose of trading and risk management. No wonder 80% lose money if your risk reward ratio is forced to be 5:1!! (random number but just to paint the picture). If you're trading on minutes putting in opposing orders isn't really a fun thing as you might miss the move completely. I just don't understand.
It is definitely the only reasonable option for a frequent or intraday trader. Another thing that seems to go against the concept of profitability (in both spreadbets and cfd accounts) is the minimum stop loss distance: in most of the assets it's 2% which is a HUGE gap, and makes it impossible to place a reasonable position. I've seen it explained as a way to avoid slippage risks on volatile markets, but it is literally on basically on 90% of the shares listed, and some that don't have the 2% seem to be some of the most volatile assets. It is incredibly limiting and puts the investment at unnecessary risk. Something should definitely be done about this.
So you are down at least £20 to start with every time you decide to open a position? That seems like a pretty bad deal. Wasn't there a smaller commission/trade cost if more than a certain amount of trades are placed in a month? It just seems strange. If you're averaging say 4-5 trades a day you get a £100 dent into your profits (supposing you are profitable on all the trades). Seems unreasonable.