Trailing stop

New at IG!

We offer Trailing Stops on currency bets, plus the following Daily Indices:

FTSE 100
Wall Street
US SPX 500
US Russ2000
Japan 225
US Tech 100
Germany 30
France 40
Hong Kong HS34
Australia 200
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The problem with IG is.....

Trailing Stops can be added when placing a trade, or attached to open positions at a later stage. Please note they are not 'Guaranteed': like standard Stops they may be subject to 'slippage' in illiquid or fast-moving markets.

With Worldspreads & Capital Spreads, they don't suffer this "slippage", whereas in a previous life I found IG seemed to build slippage into any stop whatever the volatility.

Has anyone else found this , more recently than 2/3 years ago?
 
So you have to manually set a stop to make sure it's guaranteed? I suppose in that case, it is still better for times when the market isn't volatile and during volatile times, you can set a GSL?
 
shadowninja said:
So you have to manually set a stop to make sure it's guaranteed? I suppose in that case, it is still better for times when the market isn't volatile and during volatile times, you can set a GSL?
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If you have a reasonable system, the cost of the GStp just isn't worth the money imo. But with IG they always seemed to go through the non Gstps.
During the day and hundreds of trades later I have never known WS or CS to go though one of my stops, even if it takes time for them to work it out.
 
sorry for the noob question as im just learning how to trade but what is a trailing stop? and does that apply to commodities?
 
trailing stops

mikecerdeiros said:
sorry for the noob question as im just learning how to trade but what is a trailing stop? and does that apply to commodities?
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Thats not a noob question - thats a BRILLIANT question....... !!

stops, whether trailed or not can/should be used on all instruments and if it cant be done on the platform your using OR they are ever " charged for " - move to another company... !!

eg.

Say you buy the DJI at 12,000 and the market moves up to 12,500 - you can move the stop up behind the price to say 12,250 - and by doing that, youve " locked in " 250 points profit - so even if the market reverses suddenly - youve banked that profit AND if the trend remains, you can RUN THE REST ....!! (until the trend ends)

and the same in reverse - !! (y)
 
im looking at opening a spread betting account rather than stock trading account as i dont have a great deal of capital spare to trade at the moment. One company I was looking at -because of the general good views of members here- is IG, but do they offer GUARANTEED trailing stop losses?

I cant sit at my computer during the day most times so if it isnt trailing AND guaranteed then its pretty useless.

Is there a decent company out there that offers this or should i just build more capital and trade the old fashioned way rather than spread betting?
 
marcopolomalta said:
im looking at opening a spread betting account rather than stock trading account as i dont have a great deal of capital spare to trade at the moment. One company I was looking at -because of the general good views of members here- is IG, but do they offer GUARANTEED trailing stop losses?

I cant sit at my computer during the day most times so if it isnt trailing AND guaranteed then its pretty useless.

Is there a decent company out there that offers this or should i just build more capital and trade the old fashioned way rather than spread betting?
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If you know which way the market will go, then anything goes. I would go for the leverages types. There's nothing better being profitable, BIG TIME! In your position, I wouldn't do any spread betting. Not on a high leverage anyhow. If you do go for the SB, realize that the cash you start with is gone. If you can't get yourself over the loss of it all, stay away from leverage investments. Keep your bets small and try to win, win and win. Since you're not able to watch the charts all day, a trailing stop could be handy. But if volatility spikes, your trailing stop is likely not to trigger, leaving you holding the bag after a pointless day at work. SB is like a crocodile. When it bites, it'll bite a huge chunk out of your account. :cheesy:

This is why I think guaranteed trailing stops would be fine indeed, but against what price or should I say, spread? If a vendor can't cover or hedge your position, they will lose money on behalf of you. Fun for you, not for them. If the market would crash and guaranteed everyones trailing stop, they would be holding the bag and basically go bankrupt. So, guaranteed stops would probably be a lot more expensive, then normal trailing stop. And that will certainly affects your possible returns. Less profit, same risk. Mr. Market will go up or down, a 50/50 percent chance! At least, that's mine take on it.
 
Last edited:
Axis of Evil said:
If you know which way the market will go, then anything goes. I would go for the leverages types. There's nothing better being profitable, BIG TIME! In your position, I wouldn't do any spread betting. Not on a high leverage anyhow. If you do go for the SB, realize that the cash you start with is gone. If you can't get yourself over the loss of it all, stay away from leverage investments. Keep your bets small and try to win, win and win. Since you're not able to watch the charts all day, a trailing stop could be handy. But if volatility spikes, your trailing stop is likely not to trigger, leaving you holding the bag after a pointless day at work. SB is like a crocodile. When it bites, it'll bite a huge chunk out of your account. :cheesy:

This is why I think guaranteed trailing stops would be fine indeed, but against what price or should I say, spread? If a vendor can't cover or hedge your position, they will lose money on behalf of you. Fun for you, not for them. If the market would crash and guaranteed everyones trailing stop, they would be holding the bag and basically go bankrupt. So, guaranteed stops would probably be a lot more expensive, then normal trailing stop. And that will certainly affects your possible returns. Less profit, same risk. Mr. Market will go up or down, a 50/50 percent chance! At least, that's mine take on it.
Click to expand...

i got your point on guaranteed trailing stops. i guess id have to be in slightly longer trades (over a couple of days) and/or trade what i can play with when i get home (us equities).

dont worry, i wont be using all my capital but only a small amount on any one trade. one thing i did learn through paper trading is that pigs get slaughtered. i became more profitable on paper when i traded less of my 'capital' and cut losses as soon as they hit a sworn position. its hard to remove emotion on paper so i hope i can do it for real too.

i dont really agree on the 50/50 risk otherwise i wouldnt play. rather one tries to sway one side of the 50 towards your favour.

back to topic, i will still use a trailing stop when im home. i have till 9pm for us market close no?
 
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