How are ETX for Stop Orders?
There is no option for Stop Market Order, other than guaranteed stop, which is so far down the orderbook it throws any notion of risk management right out the window.
Trading on Forex especially, where all the retail investors are leveraging up *500 in order to make a profit from a penny or two’s worth of price movement, there tends to be a lof of FU wipeout candles, which if Stop Order’s were not executed, say because the market moved to fast for the Stop Limit order to be filled, could conceivably result in a lot of margin calls.
The one trade set up I find that I can consistently execute well and the only trade setup that I would deem as viable in a Forex chart environment due to the sheer frequency of massive wipeout FU candles that put an end to trading traditional market structure patters etc, are Undervalued-Overvalued trades based of the Volume Profile tool on Trading View. Typically, one of these practice trades which I tend to get good results with, requires 1000 GBP margin. Projected profit is 100 GBP and the Stop Loss typically starts at 50 GBP in order to protect my Stop against any final small(ish) FU moves before the market turns back in the direction from whence it came…
Now I would happily sit knocking out Volume Profile reversal trades with a 70% success rate all day long, only ever risking 50 quid per trade in order to probably make 100…but in the absence of a Market Stop Order, am I really only risking 50 GBP? If I find myself on the wrong end of one of these big nasty Stop Running wipeout candles, am I infact risking 1000GBP on every trade I make, whose projected profit is only 100 pounds?
Have u ever experienced your stop orders not being filled on ETX cos the market moved too quick?
Hello.
Was wondering where you’d disappeared to.
I don’t understand what a Stop Market Order is. No such thing. A Market Order is by definition and order that when you click the button the order is sent to the market for immediate execution. A Stop Order is, well, you know.
As for setting order prices: you can edit the price in the platform you know. So I don’t know why you’re saying “so far down”. Just edit the price at which you want to place the Stop Order and there you go.
With regard to slippage: nope. I do not recall having negative slippage ever in the last five years. Positive slippage on Limit Orders yes: But then I only trade on the daily timeframes so my trading is immune from those fast moving markets for the most part.
You don’t trade Forex then?
A Stop Market Order is an Stop Loss Order that triggers a market buy/sell order, the second price hits a certain point. Generally there is slippage with this kind of order, but this might be preferable to total wipe out.
I suspect that I am right in my fears. Bets that I might place using £1000 Margin where I think I am risking £50 with a £100 target…really and truly I am risking £1000, in that 1 in 20 or so trades where I will be hit with a massive wipe out candle that will margin call my trade…even if I traded with a rate of 80% of trades hitting their targets…just one of these wipeout candles (and in Forex they are very frequent) would negate everything.
Well first: no. Definitely NOT FOREX.
But the orders are the same across all markets. Trust me: I know what a stop order is and what happens when it gets hit. And no: at ETX generally there is NOT slippage. Unless the markets are extremely volatile. In which case NO broker is going to be able to execute a stop order at the exact price at which you placed it simply because that price is just not longer available to the broker anymore.
As for risk: still don’t understand what you’re on about. You can decrease your lot sizes to begin with i.e. instead of “1” trade “0.1” or something like that. And do bear in mind (as you’ve pointed out) that ETX has guaranteed stops (if you’re prepared to pay for the privilege). In other words: slippage is not something you’d need to concern yourself with.
Oh and the amount of margin used on a particular trade has nothing at all to do with risk.
As I think I’ve mentioned before: you need to work out the tick size and tick value (tick value will vary according to position size) and only then can you work out where to place stops according to your risk.
I don’t know how else to assist you to be honest.
Dunno. Maybe give me an example of exactly what it is that you’re trying to trade and all of the other relevant details and let me set it up for you (give you an example).
“Oh and the amount of margin used on a particular trade has nothing at all to do with risk.”
If the Stop Order are Stop Limit Order as opposed to Stop Market Orders, then the amount of margin I have behind a trade idea has everything to do with the amount of risk.
ETX’s ‘Guaranteed Stops’ are no good for Forex. The Stop ends up being 300% more than your trade target.
I am sitting here paper trading Forex thinking to myself, that I can sit here and easily make lots of small trades netting 50 quid or 100 quid at a time, with most of them being successful…there must be some catch!
The lack of a Stop Market Order function may well just be that catch. I could sit for a couple of weeks making lots of LTF trades nibbling away at the market putting small wins into my account all the time, double my money, and then one day BOOM! Great big FU wipeout candle runs out a bunch of stop losses and runs past my Stop Limit Order to such an extent that I get margin called.
Nope. The amount of margin used (let’s call it reserved) on a particular trade has nothing at all to do with risk. It is merely a function of leverage. I SUPPOSE you could argue that like-for-like at any given broker: the more margin you are using (reserving) is directly proportionate to the size of the trade. Well that’s true. But only at a certain leverage. At ETX you will have to use (reserve) a LOT of margin. But you could open the same position at another (bucket shop) broker with higher leverage. You would then be using FAR less margin to get the same tick value on the same size trade. In contrast: if you then used (reserved) the same amount of margin with loads of leverage this would then affect your tick value (and probably result in a blowup).
As far as the guaranteed stops are concerned: I cannot help you without seeing an example. On the occasions when I’ve placed stops (which is not often and certainly not at all with my core trading system) I’ve never had an issue of having a guaranteed stop price being any different from where I’ve wanted my stop to be placed so I really don’t understand.
As for the catch: well there’s two. For one thing: very easy to trade with hindsight and on paper. Second: the catch is staring you in the face (FOREX).
Hindsight is 20/20 and paper trading totally negates human emotions from the equation. I have sat in the ‘hotchair’ in the past ‘tarding’ Bitcoin on an all-in basis. Taking trades looking for huge swings, but sitting scrutinising the 5 min charts, getting all my greed, fear, and hope, buttons pushed with each swing of the chart and I made some terrible trades, and made many bad decisions after having made good trades etc etc…In my defense, I was getting much better at trading Bitcoin in the period prior to my accounts getting looted…but I was still going ‘all-in’ on every trade and I took the outcome the trade very personally.
This time around, I intend to trade in amounts where it doesn’t matter whether I win or lose any individual trade. I am paper trading like crazy trying out ideas setups, testing my ability to read the market state and for the LTF Volume Profile trades in particular, honing my instinct for knowing when to hit the button.
After I have narrowed my strategy down to a few trade ideas that I have found to have gotten a good rate of success with, then I shall put a small deposit into my cfd account, an amount that doesn’t matter to me, even if I get margin called on my first trade due to a great big FU candle blowing right through my Stop Order, and take things from there and see how I do.
Or you could just drop FOREX altogether and mosey on over to my thread and get with the program of course!!! LOL!!! Basically all depends on whether or not you’re doing this for the fun of it or to make money!!! LOL!!! And no: the two don’t mix.
Hello Everyone, can someone please tell me if its possible to trade Volatility 75 in the UK.
If so, which brokers ?
Many thanks
Glen
1 Like
Try out Binary for Volatility and BDSwiss for NAS100
hello Glen
Did you manage to find a UK broker?
im also looking for one…
Regards
Jan
Hi guys,
I’ve been having issues with Binary for the past few days I’ve bee trying to make a deposit and their systems don’t allow me to. Mind you, I tried with two different banks and still experience the same problem. I’m in South Africa and if any one knows any other broker I can use that is reliable to use in South Africa, that would be awesome.
what is indices trading? same as binary?
thank you for this. highly appreciate.
Wanted to know the same in the UK, if anyone knows please could help me please
You can try out fxview as they are cysec & fca regulated
Try ■■■■■■■ if you are looking for a broker with great spreads and trading conditions especially for Indices. Great broker for me, number 1 with indices.
You will find plenty of options. You can speak with the customer support team of brokers you select. Just make sure you go for one that gives you low spreads.