Why are stop losses so expensive?

normandysr2 · Apr 13, 2016

So I'm spread betting here and looking at the costs for setting a stop loss. Its more expensive without a stop loss when you trade. If you place a stop loss the cost goes down a bit, BUT after a certain limit the stop loss cost greatly exceeds the cost to trade without placing the stop loss! So what good is a 10 point stop loss on an instrument that varies by more than 50 points a day???

Revorocks · Apr 13, 2016

normandysr2 said:
So I'm spread betting here and looking at the costs for setting a stop loss. Its more expensive without a stop loss when you trade. If you place a stop loss the cost goes down a bit, BUT after a certain limit the stop loss cost greatly exceeds the cost to trade without placing the stop loss! So what good is a 10 point stop loss on an instrument that varies by more than 50 points a day???

Not quite sure what you mean there. A stop loss is free?

You only pay for the spread on spread betting.

You might mean guaranteed stop loss? In which yeah there is a charge for those. Most people don't use them though.

Pat494 · Apr 13, 2016

Where the average daily stop loss is say 50 you could put one on for 60 and a take profit for 60.

tomorton · Apr 13, 2016

normandysr2 said:
So I'm spread betting here and looking at the costs for setting a stop loss. Its more expensive without a stop loss when you trade. If you place a stop loss the cost goes down a bit, BUT after a certain limit the stop loss cost greatly exceeds the cost to trade without placing the stop loss! So what good is a 10 point stop loss on an instrument that varies by more than 50 points a day???

Do you mean guaranteed stop-loss? Its the type for which there is a charge as far as I know (though some SB firms imposes a one-off up-front premium for GSL, not a daily/nightly fee).

I don't find GSL's economical.

Pat494 · Nov 15, 2016

Stop losses fixed to Bollinger Bands are a good idea.

Why are stop losses so expensive?

normandysr2

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tomorton

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