Guaranteed Stops and are they worth it?
Posted: Thu Apr 21, 2011 4:44 am
I have this to look at on my to do list but would be interested if anyone has already investigated.
I am considering researching the impact of guaranteed stops which are available when using a Spread Betting account. These come at a premium of increased spread but allow you to fix a known price where you can exit the trade. My thinking is that by doing so you can possibly trade more aggressively on the basis that a "Price Shock" will not be an unknown loss as can happen if markets gap hugely on some world event such as 911 type thing etc.
I am considering researching the impact of guaranteed stops which are available when using a Spread Betting account. These come at a premium of increased spread but allow you to fix a known price where you can exit the trade. My thinking is that by doing so you can possibly trade more aggressively on the basis that a "Price Shock" will not be an unknown loss as can happen if markets gap hugely on some world event such as 911 type thing etc.