Guaranteed stop loss

This is a discussion on Guaranteed stop loss within the First Steps forums, part of the Reception category; Originally Posted by Brumby The same way insurance companies make money. They pool the premiums against risk events based on ...

Reply
Page 2 of 2 1 2
 
LinkBack Thread Tools Search this Thread
Old Nov 18, 2017, 3:20pm   #16
 
Quantt's Avatar
Joined Jul 2017
Quote:
Originally Posted by Brumby View Post
The same way insurance companies make money. They pool the premiums against risk events based on actuarial calculations.

My single experience was with CMC and that was more than 10 years ago. The cost for a guaranteed stop once invoked is incurred regardless of whether it is triggered. Every single change to the stop is a new insurance event and cost is incurred. I don't believe there is any insurance out there that you only incur a premium conditioned upon an actual claim. Every insurance company will go broke.
Yep, that was my guess as well... there is no free lunch unfortunately...
Also you can do something similar hedging with stock options...
__________________
"If you don't find a way to make money while you sleep, you will work until you die." Warren Buffett, CEO of Berkshire Hathaway.

Count de Money number 1 trading rule: EDUCATE YOURSELF!

Before you trade even single penny on the stock market, please spend the time and educate yourself by back testing different trading strategies and ideas - go to eBay and search for "historical stock market data", you can buy 20 years of data for less than $100 - that's all you need to start.
Quantt is offline   Reply With Quote
Old Nov 18, 2017, 4:21pm   #17
 
sminicooper's Avatar
Joined Jun 2016
Quote:
Originally Posted by Quantt View Post
Yep, that was my guess as well... there is no free lunch unfortunately...
Also you can do something similar hedging with stock options...
Well certainly there are no free lunches in trading but I regard IG's offering as a bit of a free snackette -it would only be used in anger (Black Swan/massive gap) and only pay the premium if it's executed – it's a win-win for me.
__________________
We are defined by our past!
sminicooper is online now   Reply With Quote
Old Nov 18, 2017, 5:22pm   #18
Joined Feb 2002
I'm wondering if a GS isn't a tool for actively targeting Black Swans - stocks BEFORE earnings announcements, forex pairs BEFORE bank rate decisions etc. Anyone doing this?
tomorton is online now   Reply With Quote
Reply
Page 2 of 2 1 2

« Difference between amateurs and professionals | Interactive Brokers - Conditional Stop Loss Question. »
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
guaranteed stop loss newbie2017 General Trading Chat 3 Sep 14, 2017 9:15am
Guaranteed stop loss? rom1 Forex 2 Mar 19, 2016 10:59am
Guaranteed Stop Loss: what is guaranteed? alphahunter Spread Betting & CFDs 2 Oct 28, 2014 12:50pm
Guaranteed stop-loss vs regular stoploss Adecco Psychology, Risk & Money Management 4 Oct 24, 2014 10:17am

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)