guarenteed s/l

is it possible to use it also in fast moving market environment?..news, sudden price changes?..:smart: Is it really guaranteed in every market condition or how does it work? ...thx (I am talking about IG's guaranteed stops)

If someone could reply to this post then that would be great. Will they really honour the guaranteed stop if the market gaps straight over it?

ofcourse it is a guaranteed stop loss , but u have to pay premium ofcourse

What tar said. I have only experienced it twice and lost maybe 20 pips. Compare this to the cost in extra pips spread (on IG) that I'd have to take every trade. I am not sure it is worth it.

shadowninja said:

What tar said. I have only experienced it twice and lost maybe 20 pips. Compare this to the cost in extra pips spread (on IG) that I'd have to take every trade. I am not sure it is worth it.

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I think you are right.....it just cant be worth it.

Assume:

They add 3 pips to the spread to guarantee the stop.
Half your trades stop out.

You would need to be losing 6 pips on your stop level every time a trade stops out for it to be worth it!!!! This would never happen.

CHRISTO9HER said:

This would never happen.

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Unless you hold overnight.

ae589 said:

Unless you hold overnight.

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It does indeed depend on whether you trade a market that gaps overnight. As I only trade fx, there is a chance of a gap on Sunday night.

Guranteed Stops usually Not Worth It.

I agree with Shadowninja - the 3 pips extra just cannot be worth the loss every time you trade. I trade frequently with IG with their ordinary stops and they've always been honoured even when they close the trade two minutes late and the market has moved over 10 pips (either way makes no difference).

The good thing about them being slow to action stops and limits is that you can always jump in before them and nick a few pips. Try that with CMC and they'll still action the stop after you've closed the trade and land you with a new trade you don't want!

As was said, Forex is 24 hours so gapping isn't a problem. I suspect if there was some very dramatic news or the White House gets nuked, a guaranteed stop might save you a hundred pips but, as traders, we play the odds and saving 3 pips a trade is odds in our favour...

£10kLoser said:

I agree with Shadowninja - the 3 pips extra just cannot be worth the loss every time you trade.

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Well I didnt mean every time you trade where it should be done using classic stop loss order.I thought about trading some market moving release where you expect it to move the market certain way, so you put guaranteed stop loss on the other side But I don't know whether is sg like that really possible

Possibly a good tactic...

kubek said:

Well I didnt mean every time you trade where it should be done using classic stop loss order.I thought about trading some market moving release where you expect it to move the market certain way, so you put guaranteed stop loss on the other side But I don't know whether is sg like that really possible

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I guess IG would have to honour it even after a major news anouncement. Could be a good tactic with a large limit...