Jump to content
  • 0

Limited Risk Account



I am completely new to trading, I have spent the first couple of weeks doing all the courses at the online academy.

I want to start trading live, the problem is on my account, I can only set a guaranteed stop loss, which is up to 500 pips away,

surely this is not safer that being able to set the stop loss 30 pips away?, am I understanding this wrong

Any advice on this will be much appreciated.

Link to comment

6 answers to this question

Recommended Posts

  • 0

Hi, Thank you for your answer, The only reason I am unsure is that the guaranteed stop is a lot more pips than the normal stop, if for example I was to buy Bitcoin @5164, the min guaranteed stop is  516 pips, on my Demo account on the same trade I could set the stop @ 30 pips.

am I understanding it wrong?, surely 516 pips is a much larger risk than 30 pips is the limited risk account not to limit risk?. 

Or is the normal stop loss still @ 30 pips and the guaranteed stop @ 516 pips in case of slippage?

Sorry for all the basic questions, I am very new to this, and would like to understand it clearly before investing real money and making some bad decisions.



Link to comment
  • 0

@Markuskotze, that's correct, the liquidity in bitcoin during a pump (up or down) can be horrendous, nobody is willing to take the other side of your exit,  IG are a broker, they just match buyers to sellers (for the most part) and if no one is willing to take your get out dump (stop loss) then you are stuck with an open trade until someone finally is willing to and that could be way down the track (slippage). So yes the guaranteed stop is going to be much further away, especially for bitcoin though no way near so much for most other markets.

@Merly is correct in his proposal but the same problem will occur, you can have an order sitting there but if price jumps over it (slippage) then it wont get filled either.

Link to comment
  • 0
6 minutes ago, Markuskotze said:

Thank you very much,


Any advice for a new trader in terms of what market to start out with?

Yes indeed, you may have discovered bitcoin is not really the best market to learn on, it's prone to serious pumps and then long periods of very little movement (for the last 9 months or so anyway).

I would keep away from commodities to begin with as they are a bit more specialist though gold is always interesting, I would recommend an index such as Ftse and a fx majors pair such as usdjpy because they are both reasonably well behaved and not so prone to wild moves, you can take a look at eurusd but you will see it's ATR is very dull and has been for some time now. I would keep away from Dax and Dow as they can rip suddenly and you need quite deep pockets for the S&P because the margin is so high (as is Dow's).

hope this helps.

  • Like 1
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Posts

    • Sainsburys full year earnings and Unilever’s first quarter trading update both say the same thing, UK consumers are in for higher prices. The war in Ukraine, supply chain issues and the effects of ongoing Covid all to blame.      
    • US Dollar (DXY) Daily Price and Analysis US Q1 GDP may stall the greenback’s advance. A 20-year high nears for the US dollar. The multi-month US dollar rally continues with the greenback printing a fresh high today ahead of the first look at US Q1 GDP at 12.30 GMT. The US dollar basket (DXY) has been boosted by renewed weakness in the Euro and the Japanese Yen, as investors move from lower-yielding to higher-yielding currencies, while safe-haven flows continue to benefit the greenback. The US growth release later in the session is expected to show a sharp slowdown from the robust Q4 figure of 6.9%. The markets are currently pricing in growth of just 1% for the first three months of this year, with the slowdown mainly due to a reduction in inventory accrual over the quarter. This release is unlikely to move the greenback, unless there is a large miss or beat, as the Fed believe that 2022 US growth will be robust enough to let them tighten monetary policy sharply without damaging the economy. The latest US Core PCE data – the Fed’s preferred inflation reading – is released on Friday and this may have more effect on the US dollar than today’s GDP data. For all market moving economic data and events, see the DailyFX Calendar. The ongoing US dollar rally has been aided by weakness across a range of G7 currencies including the Euro, the Japanese Yen, and the British Pound. The Euro continues to battle with lowly growth expectations, exacerbated by energy concerns, the British Pound is mired by weak economic data, while the Japanese Yen is in freefall as the BoJ continues with its ultra-loose monetary policy.   The US dollar continues to press higher and looks set to break above 103.96, the March 2020 high. Above here the US dollar would be back at levels last seen nearly two decades ago. The March resistance will likely hold in the short-term, especially with month-end portfolio rebalancing at the end of the week, but US dollar strength is set to continue in the months ahead. USDOLLAR (DXY) WEEKLY PRICE CHART – APRIL 28, 2022 {{THE_FUNDAMENTALS_OF_BREAKOUT_TRADING}} What is your view on the US Dollar – bullish or bearish?   Apr 28, 2022 | DailyFX Nick Cawley, Strategist
    • While Tesla has nothing directly to do with Elon Musk buying Twitter - TSLA stock closed down 12% on news that Musk may have to sell stock and use other holdings to stand against the loan to finalise the purchase of the social media giant.        
  • Create New...