Stops and Limits

[adrianallen99]

Could someone explain where I stand regarding this.

I have set a stop on a couple of positions, but the stops didnt close the position when it was hit.

 

[oatman]

Who are you with and what did you enter?
A Stop Limit is different from a Stop.

 

[adrianallen99]

Capital Spreads It is a stop. (not a limit).

I was long on the FTSE unfortunately and my stop got hit or didnt as it happens.

It is now above the stop, so it will be interesting how they deal with it.

 

[adrianallen99]

It is now 6 points up from my stop and they have closed the position and logged me out.

 

[oatman]

Where did they close your stop, at 6 up from it?
You should ask what's going on. What's the delay, will it happen again. You've gotta know your position at all times. Rule No. 1 :!:

 

[adrianallen99]

I will, they let it run below the stop and when it came above it they stopped it. In fact it has come up over 12 points.

 

[oatman]

You have to know that you're out when you want to be.

 

[TheBramble]

Don't forget they're looking at THEIR mid-price when it comes to hitting stops...

 

[adrianallen99]

I think what happened was they had a problem with the system so they stop didnt get hit, when the system came back it had gone down and then was back above the stop.

Ok, I cant really argue that the stop was hit and the position should be closed. It was more than 15 mins after the stop was hit that my position was closed

 

[Bobtarrel]

I've watched my positions with D4F go way below my stops occasionally and whipsaw above and below several times before being taken out of the position. However, I have generally found that the stop price (or close to it) was honoured even if the current price was quite far on the negative side. I suspect that because they are not tied to the underlying prices, they have some flexibility in deciding to honour a stop even if the price has subsequently gone the wrong way.

With IG Index, I had one trade where their software wouldn't respond to my order to close the position. By the time I got through on the phone, it had gone much further against me. However, they honoured the price I would have got if the software had worked. More proof that they can be flexible when they want to be.

It probably helps that I'm not a punter who is taking money from them on a regular basis.

 

[MTAYLOR2]

I have recently opened an account with Cantor Index, when you place a trade you have three stop choices

1) Add guaranteed stop

2) Add normal stop

3) Add limit

Can anyone explain the difference for me?

Many Thanks

Mark

 

[TheBramble]

1) Add guaranteed stop

Does exactly what is says on the tin. If the markets go raging through your stop-loss - they'll guarantee to close at your GSL value. You pay a few points more for this security.

2) Add normal stop

They'll close as best they can. In a raging market you could be in for some heavy slippage.

3) Add limit

Is not a stol-loss, but a control you place on the maximum/minimum price at which you are you willing to buy/sell.

 

[adrianallen99]

I wrote to CapitalSpreads regarding the stop being hit late and got this reply.

Dear Sir,

I can only appologise for the late activation of your stop.
This occured because at the time your stop level was hit all of our
traders
were very busy with incoming trades and did not notice that a whole
raft of
stop levels had been taken out in the FTSE (and wall street etc).
Normally
they would just reactivate the stop order if the market had bounced
back
above the stop level, but in this case the dealers have activated all
stops
which were legitimately hit. In your case the March FTSE had obviously
gone
several points through your stop level.

Normally stops are activated pretty much immediately, but because we do
not
want an automatic computer stop activation sometimes the stops may be a
little delayed. There is a play off here in that many times we do not
activate stops even though we could do so.

In this case your stop was correctly applied but the reporting was,
sadly,
tardy. As a gesture towards the fact that you could have traded out of
the
position a few points higher we will credit your account with 10
pounds.

I hope that this answers your fears please do not hesitate to contact
us if
you have any further problems.

Regards

Simon Denham

-----------------------------
Simon Denham
CEO Capital Spreads