New User - Trailing Stops

[kammodo]

Hello All,

 

I am a first time user on IG. I have been using different platforms over the last few years and IG has a few small differences which I am trying to get to grips with. Perhaps someone can help.

 

Trailing stops. I've used them extensively over the years but I have never had to caculate the distance to market manually. This is a little confusing for me as when the market is open and you have you price and then you set your stop. The delta between the two is the distance to market. All platforms I have used so far caculate this for you as its binary. So if the price is 110p and you stop is 100 p, then the distance only can be (fixed) 10p. Trailing step is the variable, which I have no problems with

If it only can be a certain figure, then Im not sure how IG can allow you to set an arbitary (variable) figure.

Any ideas?

 

[JamesIG]

Hey - so a trailing stop with IG has two values

 

The stop distance: how far your stop is away

The step: how far the market needs to move before it drags it up 

 

For example if your buy price was 250 and you had a stop 10 points away with a 3 point step, it would mean your stop was initially at 240, and every time the market moves up 3 points your stop will be dragged up. So the market moves to 251, 252, and then at 253 your stop is pulled up to 243. 

[Caseynotes]

Hi ,  I found this confusing as well, SB platform has 2 values for a stop order but the pic indicates this platform has 3, and it seems to imply that after you have put in the entry level (not shown) then you need add the stop level and then also add the stop distance but these two numbers must be related so why the need for two inputs.  adds they have no problem with the step value input.

[Kodiak]

Using "deal" (at market) you can use either normal stop or trailing stop by click on the blue triangle

 

when using order to open only normal stop (no trailing) is available (and also guaranteed stop)

 

as i understand it?

[kammodo]

Casey, you have hit the nail on the head. There are 2 places to set the stop and the 3rd place to set the step. First one at the price and the second at the distance.

So its confusing as you can adjust both and I'm not sure if they relate to eachother in anyway.

With  'trailing' it should take away one of the stop boxes and have price 'or' distance displayed, not price and distance.

Does anyone know when you click on 'trailing' which stop box(1 or 2) actually comes into play. I can't quite see which one makes the stop move.

[Caseynotes]

Hi  & ,  ok, so from Kams pic the extra box is because it is adding a stop to a position already open, the level box is crucial and the distance box seems ... superfluous? I'm assuming the step works ok. Hopefully  can review this.

 

On demo;

 

(edit) I didn't look to see if the trailing stop was dragable to refine the setting after placing?

 

 

 

 

 

 

 

 

 

[Caseynotes]

Hi ,  Setting the trailing stop on the entry ticket is as normal with just 2 inputs (distance and step) but adding a trailing stop to a position already open there is the extra box for stop level. So input a wide, round numbered stop level in the first box, then the amount in points that is from the current price in the 'distance' box, then add the step component in the third box. Then go to the chart and click on the trailing stop and drag it to the required position.

 

Setting a trailing stop when a position is already open is the reason for the additional 'stop level' box but then the 'distance' box should not needed but if it is not filled correctly the order is rejected.

[JamesIG]

Hey all - I can't see a logic to a lack of continuity across the board on this so have raised it to our pricings and orders team. I'll report back. 

[JamesIG]

Hey all - I can't see a logic to a lack of continuity across the board on this so have raised it to our pricings and orders team. I'll report back. 

[Boris2]

Hello, are there any final financial penalties for adding a trailing stop to a live position?

 

Does it make any difference if you have an existing stop or trailing stop? For that matter what about manually tweaking a stop whilst orders are live?

Cheers

[PandaFace]

- no, there shouldn’t be

[Caseynotes]

Hi ,   is correct there is no financial penalty, you can add a stop to an open position by going to 'positions', click add stop and select type.

 

If you want to change the type of stop on an open position then on the chart click the stop level and then the attached box with cross symbol to close it and then go to 'positions' to add another stop.

 

The level of both types of stop can be adjusted on the chart by drag and drop though there will be a minimum level and that can change according to the current volatility of the market. 

[Boris2]

Jolly good. Just road tested via edit position and worked as indicated. Cheers