GUARANTEED Stop Loses. Do you use them?

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Do

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Hi

I have recently opened an account with IG Markets and will be using their 'guaranteed stop loss' facility which costs an extra 4 points on the spread for trading the daily Dow for example.

I would be interested to know if you 'professional' (more experienced) traders here use this type of facility?

Any experiences or comments would be welcome.

Thanks

Do
 
If I was trading dow futures during US market hours I would expect a spread of 1 or at most 2 point and virtually no slippage if I was a small trader (please, US market traders correct me if wrong).

So maybe 0-1 point slippage on most stops and occasionally (1 in 10 4-5 points) so lets say the average is 1 point.

On that basis 4 points would seem a lot to pay but I don't know how nasty your bucketshop is when it comes to slipping you on your stops. You might want to open an account with a real broker as soon as you can afford to trade YM contracts (try IB say).
 
Thanks

As an example last Friday at 1.30 the Dow price quoted by IG dropped about 100 points in about 30 seconds ( 13120-13020) as the non farm payroll figures came out.

If you were long prior to this with a stop loss in at say 13100, where would you expect to be closed out without a guaranteed stop loss?

With the Guaranteed stop loss it would be stopped at your requested level.

In other words even on very volatile moments do you still pretty much get stopped at your desired point anyway without paying the premium for a 'guaranteed' stop?

Hope I'm explaining myself well enough.

Thanks

Do
 
As a newbie, I trade with guaranteed stops on IG... makes scalping harder as you have extra spread to take into account but I feel safer.
 
Someone with live dow data would have to answer but if it was me the normal answer is simple.

I don't day trade into news events --- because its gambling if you don't know what the news is going to be ahead of time. A basic principle of day trading is to know when the big news events for your contracts will be and stop trading (exit all short term positions) an adequate time ahead of them.

Bucket shops seem to attract new people who think there is an edge in news events and these same people seem to later complain about the way they get treated in them (spreads go wide, bucket shop stops transmitting data, stops are not honoured (check the fine print)). I don't know how your one deals with it but most of them seem to have developed strategies to avoid going out of business when their customers enter the event with two accounts holding opposite positions with guaranteed stops :whistling

Does anyone here know 1) what the slippage on EY was during that event for a couple of contracts and 2) what IG does to cover themselves with news events?
 
Do said:
Hi

I have recently opened an account with IG Markets and will be using their 'guaranteed stop loss' facility which costs an extra 4 points on the spread for trading the daily Dow for example.

I would be interested to know if you 'professional' (more experienced) traders here use this type of facility?

Any experiences or comments would be welcome.

Thanks

Do
Click to expand...


If you day trading you need a very profitable system to make this profitable. For example....10 trades per day with IG how many points will you have paid IG??? With Worldspreads at 2 points a time, how much will you save??
You really need to look at your entry/exit profit margins etc.
 
Do i'd stay away from the bucketshops mate as you wont know if its you or your system that not workin. The good traders that use them know their systems and themselves and take advantage of the tax free benefits.

If you look to the US you can get $500 margins and $2000 account minimums and trade Dircet Market Access so that at least your'e in the real market and you know if you lose it was you or your system and not the bucket shop skewing you or running your stops. Remember you can lose this money as well with low margins.

Ive just finished a months free demo with (Online Futures Trading - Open E Cry ™ a Direct Access Trading System). I now pay about £12 to use the platform every month until i fund my account and go live. Im getting more used to the platform and as the data is live im getting used to how the market behaves.

You can also take the data and use it in other charting platforms if you want better charting.

There are many others in the US also. Hope this helps

PS: I'd worry about making money in a real market before looking at the tax free bucket shop benefits.




Do said:
Hi

I have recently opened an account with IG Markets and will be using their 'guaranteed stop loss' facility which costs an extra 4 points on the spread for trading the daily Dow for example.

I would be interested to know if you 'professional' (more experienced) traders here use this type of facility?

Any experiences or comments would be welcome.

Thanks

Do
Click to expand...
 
Do said:
Hi

I have recently opened an account with IG Markets and will be using their 'guaranteed stop loss' facility which costs an extra 4 points on the spread for trading the daily Dow for example.

I would be interested to know if you 'professional' (more experienced) traders here use this type of facility?

Any experiences or comments would be welcome.

Thanks

Do
Click to expand...


A guaranteed STOP is no bad thing - sure you will pay a few more points in the spread, but you can also use it to your advantage because it brings your deposit down for that trade.
If you jump on the RIGHT TREND - it will move enough to absorb this AND give you a nice profit either side too -
STOP LOSS - STOPPING LOSSES...... !! - always a good safety net ... !!(y)
 
Windowsill said:
If you day trading you need a very profitable system to make this profitable. For example....10 trades per day with IG how many points will you have paid IG??? With Worldspreads at 2 points a time, how much will you save??
You really need to look at your entry/exit profit margins etc.
Click to expand...



10 trades per " DAY "...? WOW.......... !! :-0

why not trade with the trend, open a position and hold it for a MONTH - and pick up 1000/1500 or so points..? :idea:
 
I have traded with finspreds for abouit 4 years and have never set a Guaranteed Stop: their discretionary stops I have set have always been hit, though the delay in them appearing on your account record causes confusion - for quite some time you can't be positive your stop (or order for that matter) was hit and this delay is worse right when you don't need it, when the market is moving rapidly. It has caused me to unnecessarily open contrary positions to hedge, just in case.
 
Lightning McQueen said:
Ah but points mean prizes :D

Talking of points sills, have you beat that helicopter high score yet ? (y)
Click to expand...


I, and I mean this with total envy/jealousy:devilish:..............just do not know how you manage those scores....I tried particularly hard on the space invaders.....what can you do when they are trimming the top of the buildings before you can get a shot in !!!!!!!!!!!!!!!!!! obviously have better tools than me.:whistling
 
I use guranteed stops on positions held over a longer term and move the stop to lock in the profits. But the stops are wreaking havoc in volatile markets (dips and recoveries in intraday leading to closed positions) which leads me believe that it really is also used partly for psychological reasons, to "feel safe"
 
I think they are good for people like me. People who are interested and just getting into it, but don't have the experience and are still learning. I have been trading with very small amounts per point to gain experience, I don't magically expect to make money so there's no point in losing loads while I'm learning. I have been grateful for the guaranteed stop loss once or twice, where it went below the level I had specified before stopping me out and IG had to make up the difference.

I think it's a great tool for those that are still getting their feet, after all aren't something like 90% of all spread betting accounts that are opened, closed within the first month.
 
theroguetrader said:
Yea, well why not hang on for the long term and pick off 1000 points then ..? :whistling
Click to expand...

To put it simply, I would not swing trade the amounts I play with during the day. I would not go overnight, and I would not want the stop losses required for such positions. I may let a fraction position run for fun points....not very likely though as I lack humour when I trade hahah.
 
Guaranteed stop loss on currency?

Does anyone spread bet on currency,if so does anyone use guaranteed stop loss? someone please correct me if Im wrong unless its over night I don't expect a currency like usd/eur or gbp/usd (as these are the only pairs I trade) make a massive slide either way in one go passing a regular stop loss?

Thanks
Max
 
Bump. I'm just getting ****ing toasted here as eurusd has gapped above my stop. Considering using guaranteed stops in the mean time for weekend trades.

For those using IG index, in addition to extra spread (+3 right?) is there any extra (i.e. in addition to the existing) rollover costs?

edit: Trying to evaluate whether it's worthwhile. I see most of those who are against it being daytraders. However my average target is pretty much bang on 150 pips, so to protect my ass against a black swan i don't think paying 3 pips is that bad. I take around 60 trades per year, 180 pips... about 2.5R...
 
Last edited:
Do said:
Thanks

As an example last Friday at 1.30 the Dow price quoted by IG dropped about 100 points in about 30 seconds ( 13120-13020) as the non farm payroll figures came out.

If you were long prior to this with a stop loss in at say 13100, where would you expect to be closed out without a guaranteed stop loss?

With the Guaranteed stop loss it would be stopped at your requested level.

In other words even on very volatile moments do you still pretty much get stopped at your desired point anyway without paying the premium for a 'guaranteed' stop?

Hope I'm explaining myself well enough.

Thanks

Do
Click to expand...


NFP's and stop losses dont mix.... ;)
 
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