Hi is there a guarantee ? I dont like using stop losses because i know what leverage im using according to my account but lets say in case of more wise trading and bring more safety to account and long term trading risk management im blur and doesnt have enough experience and information bring it together in some point ,What happen if i have buy position and the market gap down being in illiquid volume and jump out of our stop loss , what the broker does and how our stop loss function ,is it position get closed in next level of volume liquidity in market , , does margin call happen or broker hedge our position
Or , how do we find out true terms and definition of guaranteed stop loss in different brokers ecn or market makers, whats work the best
What is different and advantage if any , using broker margin call stop with stop loss?? tnx
Yes.
There are brokers who will undertake to close your position with them at a pre-agreed level (i.e. a “guaranteed stop-loss”) regardless of whether or not the market traded at that price, the speed of the market, intervening events, and whether or not they were able to close any position of their own at that price. In other words, they agree to settle your account [I][U]as if[/U] the position closed at the specified price[/I], regardless of subsequent events.
They usually charge for this in the form of extra spread, when the position’s opened.
It’s relatively expensive.
It’s a significant additional profit-source for the brokerages who offer it.
I’ve never used them, myself: it wouldn’t be worth it, for the type of trading I do.
What [I]they[/I] choose to do is their business. If you’ve paid the premium for a guaranteed stop, they close [U]your position with them[/U] at the specified level.
You need to read the fine print carefully, and discuss it with them.
For me, not using guaranteed stops works best, because the cost of using them would be disproportionately expensive for me (and I’m wording it mildly).
I appreciate your explanation and sharing your experiences with me and others
How about last question
What is different and advantage if any , using broker margin call stop with setting a stop loss
A margin-call stop relates to your account, overall; a stop-loss relates to individual trades.
If you trade sensibly, with appropriate position-sizing, never exposing more than a small percentage of your account to risk at any one time, “margin calls” need not occupy your time and attention [I]at all[/I]: they’re relevant only to wild gamblers, not to traders.
I prefer not using guaranteed stops first of all because it guarantees that the broker is Market Maker and second because it is more expensive anyway…
On the real market there is no such thing as guaranteed stop. There is demand and supply if there is no demand for your supply the position could not be closed/opened on the wanted price.
As for the margin stop out it is SL as any other (pending order for closing the position which turns into market order when the price triggers it) just that it is for all of your trades and its triggered by the margin level of your account. But if you even get to the situation of receiving a margin call or even stop out this means that you are completely overleveraged and you failed as a trader…
Learn to diversified your portfolio and it is consider near to guarantee stop loss.
Actually, you need to read the broker’s regulations, there you can read about how the deal will be exited, when the gap happens, which jumped over stop loss. Usually the order closes right after the first gap price. Anyway, read regulations or ask broker support.