Stop losses not guaranteed?

[ellieCAPRI]

Does anyone know the rules of stop losses and how it works? I have a Capital Spreads account and had a FTSE 100 trade rollover once but the stop order i placed was override. Hence, no point of a stop order no? ..if it's not working. Why is it not guaranteed?
Advises would be helpful. Thanks!

 

[nine]

If its a real market (not some jumped up manipulated kiddy market) then a stop loss is this:

When your stop order price is reached then it is replaced with a market order - so if you are long and you have a sell stop loss at 100 then it is held by your floor broker or on an exchange or brokers computer (so no one else can see it); when price drops to 100 a sell market order is issued to the other participant on the exchange and if someone wants to buy it then the first participant to ante up with any price (highest at the time) buys it.

If there is no one who has a waiting limit order within 20 points then you might lose 20 points.

 

[Calinor]

Did it actually hit the price of your stop? Price can move through certain values and not actually trade at them. You could check the ticks to see. It is unfortunate for you, but it does happen. And yes stops should be guaranteed, but some SB firms offer the guaranteed stop at a premium (i.e. you pay a very wide spread). Just seen that nine already explained it perfectly.

 

[ellieCAPRI]

I think the problem is that because the trade took place outside trading hours (FTSE 0800-1630), the value given are quotes - so the stop loss is not guaranteed. Capital Spreads also offers 24hrs trading on US markets, ie. Nasdaq Rolling Day. Does anyone know that the stop loss definetely working in this case??

 

[shadowninja]

Does CS actually offer guaranteed stoplosses like IG Index do?

 

[ellieCAPRI]

Does CS actually offer guaranteed stoplosses like IG Index do?

This is the confusing bit cause i emailed CS and they said 'No orders are guaranteed on our system at all at any point - this includes stop loss orders'

I thought this applicable outside trading hours because the stop order does work before for me more than once during trading hours...grr..any comments?

Does IG charges for the stop levels?

 

[KillPhil08]

they add 3pip spread for guaranteed stops, also minimum stops are wider

 

[ellieCAPRI]

they add 3pip spread for guaranteed stops, also minimum stops are wider

what does 'minimum stops are wider' means in simple english? (i'm a newbie.. still picking up the trading language) Thnaks!

 

[Masquerade]

It means you have to use a bigger stop loss so you risk more if you have to use a bigger stop.

Ps. Leave capital spreads ASAP

 

[N Rothschild]

guaranteed stops? pftt bunch of jessys!

 

[tar]

Capital Spreads - Financial Spread Betting Homepage

read the paragraph at the bottom of their homepage

If u want garaunteed stops move else where , CS doesnt offerr FTSE 24 hour , so u will face some gaps at morning , as well as gold and oil , they dont offer 24 hour trading in these products . And they dont offer garaunteed stops on any product .

 

[shadowninja]

what does 'minimum stops are wider' means in simple english? (i'm a newbie.. still picking up the trading language) Thnaks!

As you know, you have a minimum stop size at CS. You can't have a zero stop size or 0.1 tick stop size for instance at CS. At IG if you want to take advantage of their guaranteed stops (ie even if it slips through your stop you don't lose a penny more) then IG have a wider spread and force you to have a bigger stop than you'd want. Depending on your style of trading, you don't really need guaranteed stops. I notice on another thread you're trading the open and close. I think it's deadly for newbies.