D4F Stop Loss

[SallyT]

Hi Everyone,

My first post here and I’m afraid many may think my first question a bit daft but I have an issue with D4F description of a stop loss.

I’ve been placing small bets on Finspread and doing OK and their stop loss means stop loss and is easy to place. I now have an account with D4F and I’m confused about their terminology for the same thing. Their online trading platform gives 4 options, Market, Stop, Limit, & CRB. I know what the ‘Market’ is and I know what a CRB is but how does Stop & Limit work here?

I’ve tried to place a trade thinking that ‘stop’ means ‘stop loss’ but it doesn’t apparently (try placing a Buy and putting in a stop, it will only allow you to go above the price, not below it!)

So I talk to their back office for clarification and was really insulted by whoever it was I was talking to, I think the guy thought I was from planet ZOG. (perhaps cos I’m a Women!) I was so narked that he couldn’t explain, in simple terms, how to put a stop loss in place, I rang off!

Can someone explain to me how to place a Stop Loss online with D4F, how a Limit & Stop works. I’m not exactly a raw beginner, just new to D4F TP but really annoyed with myself that I can't understand this. I’ve read the whole of their dealing guide and I’m still confused.

Can anyone help me and explain in simple, stupid,
planet 'Zog' terms please?

SallyT

 

[ColinRiche]

If you were wanting to buy at 200p and the price is 220p
you could place a limit order to buy when it reached that price

you could also place a stop at 180p which would be to sell

make sure you highlight buy or sell to which you want to do

you can also place a profit stop using a limit order at say 240p to sell

the inverse is used when you want to sell short

always remember with the exception of OCO orders
all stops and limit orders remain live until actioned or cancelled
(with exception of good for the day orders of course)

,

 

[Absolutely Barmy]

Don't worry it's not you.

Their software does not work as you might expect and is, I believe, quite illogical.

Matters are made worse by the fact that their staff will not accept that sensible logical people who have experience of other and perhaps better systems might just know what they are talking about.

I took issue with them about this point and just ended up abusing them out of sheer frustration.

Their approach is quite simple, even simplistic.

If you wish to buy and place a stop you can not do this at the same time. You have to buy and then, as a separate order, place a sell stop, hoping that you don't get disconnected or their system hangs.

My experience with them is that if they have the opportunity to "take out" your stop they will. Having seen many sudden price movements which went just far enough to take out my stop I stopped placing them unless I was so far into profit that I didn't care anyway.

This of course means that you have to pay attention.

Sorry not to be more helpful.

 

[mmillar]

Essentially...

If you want to Buy below the market or Sell above the market you put in a 'limit' order.

If you want to Buy above the market or Sell below the market you put in a 'stop' order.



Although it may be confusing, it is standard market terminology and D4F are no different from anyone else.

You may find going to one of D4F's open evenings helpful - you can then ask the traders questions (rather than the backoffice dunces) and will get much better responses.

Cheers

mmillar

 

[Finlayson]

As CRiche says above

also be aware that they have stop tolerance, limiting where u can place a stop against current market price, this is twice the spread +1 point on most indices

i.e say u were wanting to BUY the FTSE at 4000, so u did at market price (4000) u then want to place a protective sell stop ( FTSE spread=+5 points.....so 2x5+1 =11 points).....so the nearest u could place a 'SELL' stop would be 3984

say then u want to tke a profit u could place a SELL limit above

jay

 

[ColinRiche]

The point about stops being taken out -

That is only true of index's and out of market hours trading
as these are influenced by the futures market and as so
they can quote pretty much what they like

with UK stocks they quote the 'best price' available
and if a stop is triggered when you think it shouldn't of been
you can query it

US stocks are a bit more trick - they use a minumum of a 5 point spread and only quote large cap stocks

.

 

[al-motor]

Sally,

As mmlllar says, the termms are standard.

Say the FTSe is currently at 4185- if u want to buy it WHEN it reaches 4195, then u can enter the order now- to buy on stop at 4185- when the mkt hits 4185, the trade is executed-

To then put a stop loss say at 4180, u would then put in a SELL and choose stop at a price of 4180- D4f will not let u put a stop too close, it usually has to be about 10 pts away........

Understand the stop part first and then u can move on to a limit order.........

It can be very confusing when u start out, so dont feel bad about it...............

 

[Newtron Bomb]

The terms are industry standard as has been stated.

A STOP, LIMIT & MARKET are order types
Stop is placed behind the current market price and a limit is places ahead of the current market price, if you are already in the market.
A stop or a limit can be placed to enter the market.

A stop order when triggered gives you the price you wanted or the next best that is available.

A limit order when triggered gives you that price and that price only, but only if there is sufficient supply for your order

A stop loss in which you are referring to is a method used to limit the potential loss incurred if your trade turns against you.

so to place a stop loss you would need to, for along trade, set a "sell stop" lower than the current market price for it to be accepted. The amount is clearly your choice depending on your strat. vies versa for a short trade.

HTH

 

[candles]

Short at 33.00. Put A BUY Stop order at 33.30 to take you out if it goes against u by 30c.

Go Long, say dow at 9400. Put a SELL STOP order at 9380 to cover your trade should it go 20c against you.

The limit feature on D4F is more of a profit taking order. Like go long Dow at 9400, put a limit sell order in at 9445 to secure your 45 points. Hope i got it right. lol

 

[SallyT]

Thanks everyone, now I understand - I thimpk!

The explanation rather reminds me of another well know explanation of - Cricket. This is especially for our friends across the pond!

Definition of Cricket.

You have two sides, one out in the field and one in. Each man that's in the side that's in goes out, and when he's out he comes in and the next man goes in until he's out. When they are all out, the side that's out comes in and the side that’s been in goes out and tries to get those coming in, out.

Sometimes you get men still in and not out. When a man goes out to go in, the men who are out try to get him out, and when he is out he goes in and the next man in goes out and goes in.

There are two men called umpires who stay all out all the time and they decide when the men who are in are out. When both sides have been in and all the men have out, and both sides have been out twice after all the men have been in, including those who are not out, that is the end of the game!

Cheers,

SallyT

 

[al-motor]

LOL sally...............

it can be confusing- spend some time understanding what has been said...............