Order JUmps!!!

#1
HAve U people experienced when u place a stoploss order in online day trading in commodities..
it was not triggered and crossed my price and went..
What is the solution to this?
Do we need to spread or give slippage for the broker?

Plz answer asap!!!
 

anuragmunjal

Well-Known Member
#2
[QUOTE=Deepavannan;535558]HAve U people experienced when u place a stoploss order in online day trading in commodities..
it was not triggered and crossed my price and went..
What is the solution to this?
Do we need to spread or give slippage for the broker?

Plz answer asap!!![/QUOTE
]


Dear friend

the order would jump if u do not give an appropriate spread between the trigger price and the execution price.. this is quite common in commodities like chilli, jeera,potato etc..because when such commodities start moving, they move very fast and they are not very liquid...
the slippage that u are speking of does not go to ur broker..he would charge u the same commission any which ways... whatever trading system u are using...u will have 2 factor in the cost of this 'slippage' and then check whether ur system is profitable or not..

regards
 
#3
The best way to such situations is to use "at market" stop loss (i.e. enter only trigger price, dont enter any amount for the stop loss, this way the position is closed when the price is trigger at market price). This way there will be a little slippage involved but there is a guarantee of stop loss.

This will stop you from getting f***ed when the price very high rises suddenly (which is common in commodities)
 

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