Stop loss settings on IG versus CMC question

[Johnny Oddsocks]

Hi all

I have been using CMC and have recently opened an account with IG as well and find a difference in stop loss setting which is prompting me to ask a question here.

On CMC for ETF trading I can set a stop loss at the time of doing the buy order. ''If the stock trades at or below etc it will trigger a sell''. Works just fine for me.

On IG I cannot do this at buy. I called the help line and it was explained that they do not offer that set up on ETF only on the CFD side of the platform and that to set a ''kind of stop loss'', I first have to execute a buy, THEN open sell and put in a sell order at what ever I want as a stop.

My question then is: Lets say I buy an ETF at $50.oo on IG and then after that has been filled go into the SELL like I was told and enter a sell at $45.oo as ''a sort of stop loss'' isn't that just going to signal a sell and someone will snap them up?

Almost seems that if I use the lower fee IG platform I have to use mental stop loss as I cant really set a proper one as per CMC...

thoughts please

I know there are different schools of thoughts on the pro's and con's of stop loss setting, that's not part of the question though...

Thanks.

 

[peter2]

Yes, you're right. Don't place that sell or you will be sold asap and you'll lose two commissions and the spread.

You may place a stop (loss) order when you buy, by indicating how many points away from the current price it's to be placed. The limit order is for selling at a higher target price.

Also you may enter or modify both the STOP and LIMIT order prices after your trade is started.

My comments refer only to the CFD side of IG. This picture is from the IG cfd platform using the ASX-ETF BEAR. This instrument is a BEAR-CFD, not a BEAR equity/share.

IG may have different rules and margins for their equity instruments. It's up to all users to know IG's rules and trading conditions.

 

[Johnny Oddsocks]

Yes, you're right. Don't place that sell or you will be sold asap and you'll lose two commissions and the spread.

View attachment 106734

Thank you Peter, then it is as i figured on IG ETF side. Wont be using them in spite of the lower fee unless it is a trade over a time frame I can closely monitor and be disciplined enough to use a mental stop.

Seems very poor of the platform.

If I cant monitor a trade over the whole period I figure I'm better off paying CMC $10 a trade over IG's $5 a trade. Pity, I rather liked IG's workspace .