Moving a stop loss on a rolled over trade ?

[Jackie284]

Hi everyone,

I'm still really new to this spread betting, but I'm currently using a demo account with Capital Spreads. Anyway, I placed a trade yesterday morning, and it rolled over last night with a profit of £26.00, from a stake of £2. Is there any way I can lock that profit in by moving my stop loss over the weekend ?

many thanks

Jackie

 

[jamesbk]

moving stop

Hi, Just log in to your account. At top click on "Order Book" - an order slip will appear with your current order, simply adjust the order to your new order and click confirm.
Regards Jim

 

[Jackie284]

thanks Jim,
so if the index I traded on opens lower on Monday, the £26.00 will be locked in ?

thanks again
Jackie

 

[jamesbk]

stop loss

Well in theory. Problem sometimes with leaving trades overnite or weekend, price often moves almost instantly the instant CS open for trading and can often go right thru your stop. In real live trading you are stopped at the nearest price when a dealers activates your order. Of course, sometimes the price can move in your favour which is OK. I seldom leave positions overnite, sometimes shorts, but normally close trades. I never leave over a weekend. Suppose your were in a long trade and left it over weekend. Sat. afternoon, Bush attacks Iran or Al AQueda attack USA, markets will instantly plummet hundreds of points at the open and you would lose big time. Thats what demo's are for, to learn. Have fun,
Regards Jim

 

[Tenapenny]

Hi Jackie,

Jim's right about leaving your positions open especially over the weekend. You can get a guaranteed stop loss, but not at CS, some other SB co's do this but you will pay more for it.

Good luck!

Ken

 

[MoonlitBay]

Hi,

how much more will we be charged for a guaranteed stop loss and if it is worth using?
thanks!

 

[Tenapenny]

You will be charged by a much wider spread. How much depends on the individual SB co. I would check the terms and conditions for various firms if a GSL is what you want. Remember that the markets react very quickly to bad news but are slower when there is good news, so if you are leaving your positions open do you use a GSL or not in case the market gaps widely. Its really down to you how much of a risk you take. You are the trader, it's your decision.

 

[MoonlitBay]

This is the fees charged by Finspreads.

"The current guaranteed order fee on the Dow – Rolling is 3 times the stake for that particular position;
for the FTSE - Rolling it will be charged at twice the stake for that particular position."

 

[Tenapenny]

So that's like 3 extra points and 2 for the FTSE. If you've already made gains and locked in your profit, it might be worth it if you can do that otherwise do you risk the trade overnight or the weekend. I guess its a personal call. Any more experienced traders out there who could give us some advice?

 

[Hoggums]

So that's like 3 extra points and 2 for the FTSE. If you've already made gains and locked in your profit, it might be worth it if you can do that otherwise do you risk the trade overnight or the weekend. I guess its a personal call. Any more experienced traders out there who could give us some advice?

I think it's more down to personal feelings. I never use guaranteed stops - and I've stopped using SBs that aren't 24hr and don't open until 7am Monday morning. This way I am far less likely to get hit by gapping. I also trade futures now as they are slightly cheaper than trading the cash if you hold for more than a couple of days - despite the wider spread.

I you are holding trades for days then you are probably looking at 40+ points profit per trade as a minimum - so if you lose an extra 2-4 points with a guaranteed stop it's not that much of a hit. For a newbie's peace of mind it's probably worth it. After a while you can abandon them as you gain confidence.

However if you are trading shares via spread-betting - they can jump massive amounts overnight and I would suggest guaranteed stops are a must!

 

[Tenapenny]

Thanks for the advice Hoggums. Shares are a bit too volatile for my timeframe (2-5 days) so I'm trading indices at the moment as I can't keep my eye on the ball all the time.

 

[MoonlitBay]

This is the fees charged by Finspreads.

"The current guaranteed order fee on the Dow – Rolling is 3 times the stake for that particular position;
for the FTSE - Rolling it will be charged at twice the stake for that particular position."

Note that the charges are 2 or 3 times the stake, which i believe if u bet £1 per pip, u'll be charged £2 or £3 per pip for a guaranteed stop loss, which i find is quite expensive!