I am new to spread betting, have a demo account and have worked through IG’s courses. I am interested in medium sized companies – including trading within 1 day.
An example of my problem is that on Friday, a GSLO had to be set 20% away from the trade price on Fevertree Ltd. That is useless on its own as I would need to be expecting a 40% profit to achieve a 1:2 risk/reward ratio. Even the usual 5% GSLO distance for shares may be too far in many cases – implying a 10% upside during the day. Setting a normal stop at my desired distance seems to solve matters whilst still having the GLSO as a backstop to gapping. How do I set a guaranteed stop loss and also an ordinary stop at a level nearer to the entry price? I can’t see how to do it on the platform and the idea is apparently not covered in the courses.
Also, I take it if the normal stop is activated the GLSO would automatically be cancelled and vice versa. Is that right?
Finally, when I open a live account, it appears I have to always set a GSLO. If so, again, will I be able to set a closer normal stop as well? I realise I could go with the GSLO and manually close the trade at my desired stop level – but that would mean me having to stare at a screen for hours and seems to make no sense as that is exactly what a normal stop is for.
I think I must be misunderstanding or missing something. Thanks for your help,