Q. When is the use of stop losses not appropriate? A: Using protective stops to manage risk has downsides especially in volatile markets but then there are pluses and minuses to every risk management strategy – the...
Latest Posts
Trailing Stops and the Limitations of Stop Losses
Q. What is a Trailing Stop Loss? A: This is a stop loss level that automatically adjusts higher or lower as the underlying stock or spread bet instrument moves. So a trailing stop would automatically move up behind the...
Situations where Guaranteed Stops are Useful
Q. Should I be using Guaranteed Stop Losses? A: Guaranteed stop loss orders protect you against overnight price movements or gapping – when a price jumps past a stop loss level. So when considering their use ask yourself:...
How Much do Guaranteed Stop Loss Orders Cost?
Q. How much do Guaranteed Stop Loss orders cost? A: Most CFD and spread betting providers offer guaranteed stop loss orders. If you intend to use guaranteed stop loss orders in your trading be wary that the charges can vary...
Guaranteed Stop Losses or Ordinary?
Q. What is a guaranteed stop loss order or controlled risk bet? A: Normal stop loss orders are free but they do not guarantee that you will be stopped out at the exact ‘stop loss level’ and may be subject to slippage...
IG Index Stop Loss Rules
Q. It is rather impossible to implement the SB stop rules on the IG platform, as IG restricts the stop levels to a minimum 5%… A: Do you have a Limited Risk account with IG Index? If so you have to have guaranteed stop...
Placing Stops Out-of-Hours
Q. I’m trying to place an order out-of-hours but my spread betting company will not let me place the buy order at the price I want to! A: This is usually because outside market hours spread betting providers do not...
How Contingent Orders Work
Q. How does a Contingent Order work? A: There are a number of different order types and all are intended to help you manage risk. Contingent orders are a kind of advanced order, lying inactive until after the first order is...
Stop Limit Orders and OCOs
Q. What is a ‘stop on close’ order? A: This is a type of stop that will trigger based on the closing market level for the day. The whole idea of having a ‘stop on close’ is to allow space for daily...
Controlling Emotions: Avoiding Moving Stop Losses Once Set
Q. What do I need to do to make myself not touch my stop loss order levels once set? More often than not I set my stops very tight and end up changing them after entering a trade… 😳 A: The way to go is to reduce your...