Spread Betting - Will a trade activate on a tail

[kanuvas]

Hi All,

I am probably going to get a load of terminology wrong here as I am fairly new to this but was wondering if anyone could enlighten me.

In many different stocks you can see what I have heard called as kangaroo tails. I have highlighted a few in the picture attached.

Now my question is, if you put a automatic buy signal (Spread betting only) well below the current buy level and a 'spike' in the stock happens creating one of these tails which passes down through your automatic buy signal, will it activate?

This is I have no doubt a terribly noobish question but it does seem to me, it should activate and is an easy way of getting a great price?

Many thanks for any comments.

 

[jungerns]

Yes it will activate if it drops low enough to hit your order.

Off course the tail could be the start of a big drop as well !!

 

[kanuvas]

Ah yes, that is true. Thanks for your answer.