CMC stops

[ivor31]

Hi
Just a quick question to all who trade with CMC.I had a overnight position in SAB(short) with a stop of 558.25. Today SAB opened at 559.75. I thought my stop would have been honoured at my price but 10 mins later it was executed at 563.Is this the way it works or have i been stung?


Thanks

 

[oatman]

Don't know about CMC but a Stop's a Stop.
Unless you pay extra for guarantees you get filled at market.

 

[Finlayson]

ivor

as oatman says a stop is a stop , SB or not & if that was the next best price then u have to accept it.....if u know it wasn't u can always ask them

Jay

 

[FTSE Beater]

Hi Ivor

I think in this case CMC were right
If you have a look Here
It should show you the trades that went through this morning. After SAB opened, the next best ask was 563
So CMC got you out as soon as they could

HTH

 

[Steve-E]

This is just the same as trading the underlying security. If the price gaps through your stop-loss, they will just fill your order at the next price traded.

I had a similar case trading C&W last December (real shares not SB), I had a stop loss at 80p, it closed one night at 83.5 and opened the next day at 55. As it is, my broker at the time operated a stop-loss 'window' system which means the price went straight through my window without a trade and the SL order was never executed.
I eventually noticed and got out at 43(!)

It was a valuable lesson. Gapping is the risk taken by the swing trader.
As FTSEBeater said, just be glad you got out when you did.

If you don't like gaps, you can use the gauranteed stop loss system, though it costs you. I use CMC myself and must confess I have never found this to be cost effective unless you are gambling on company news and suspect that your position could go against you (howwibly).

 

[ivor31]

Thanks all who replied. I`ll put this one down to experience then.

Cheers.

 

[darrenf]

If you are open to looking at different instruments to trade, have a look at trading forex.

These are 24 hour markets and therefore it is very rare to get gaps (sometimes after weekends there can be small gaps) and unlikely that your stops will be executed at anything other than your actual chosen stop.

I use CMC to trade forex and have never had any slippage on stops.