Question About Stop Loss - Emini Index Futures Trading | futures.io
futures io futures trading


Question About Stop Loss
Started: by trucaKe4 Views / Replies:335 / 4
Last Reply: Attachments:0

Welcome to futures io.

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.


You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Reply
 
Thread Tools Search this Thread
 

Question About Stop Loss

  #1 (permalink)
Trading Apprentice
Portland, USA
 
Futures Experience: None
Platform: fxTrade
Favorite Futures: Forex
 
Posts: 2 since Aug 2016
Thanks: 1 given, 0 received

Question About Stop Loss

Hi all.

Suppose I buy a stock at 1070.35. I have placed the stop loss for this trade at 1062.50. The next day, I see that the opening price of the stock is 1059.25.

My question is - does the stop loss get triggered automatically the next day, since the open price is 1059.25 and this open price is below my stop loss point @ 1062.50?

Can anyone shed some light into this situation? Thanks.

Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Trading Apprentice
Sydney / Australia
 
Futures Experience: Intermediate
Platform: Custom
Broker/Data: Interactive Brokers, FXCM, IQFeed
Favorite Futures: ES, CL
 
Posts: 1 since Nov 2015
Thanks: 1 given, 1 received



trucaKe4 View Post
Hi all.

Suppose I buy a stock at 1070.35. I have placed the stop loss for this trade at 1062.50. The next day, I see that the opening price of the stock is 1059.25.

My question is - does the stop loss get triggered automatically the next day, since the open price is 1059.25 and this open price is below my stop loss point @ 1062.50?

Can anyone shed some light into this situation? Thanks.

It depends on what sort of stop loss you have in place, being market or limit.

For the more typical StopMarket yes it will be triggered immediately (the final price of the sell order to get you out may even be different to that again, due to slippage).

For a StopLimit it won't be triggered until the price trades back up to a minimum of 1062.50 (which is a terrible thing for a proper stop loss which is designed to get you out). Which is why StopLimit(s) are generally used as Profit Target orders...

Hope that helps.

Cheers
Chris

P.S. on reflection there is a chance that for a SELL StopLimit order, one could only place that above the market not below... which is why its a profit taking order not really a stop loss.


Last edited by cjdsellers; August 19th, 2016 at 09:50 PM. Reason: clarification
Reply With Quote
The following user says Thank You to cjdsellers for this post:
 
  #4 (permalink)
Trading Apprentice
Portland, USA
 
Futures Experience: None
Platform: fxTrade
Favorite Futures: Forex
 
Posts: 2 since Aug 2016
Thanks: 1 given, 0 received

Thanks for the info cjdsellers

Reply With Quote
 
  #5 (permalink)
Elite Member
Boca Raton
 
Futures Experience: Advanced
Platform: Variety
Broker/Data: Optimus Futures, LLC
Favorite Futures: Futures
 
mattz's Avatar
 
Posts: 1,875 since Sep 2010
Thanks: 1,795 given, 2,526 received

Futures Edge on FIO
Since many here trade futures....just a few pointers. If there is a big gap or abnormal price move in price, even if your stops were regular stops, it does not mean they will be honored. I have seen Stops that were turned into limits because of such moves. I believe that each stop has a "protection" limit and if this is exceeded than a limit will be in place.
For your reference:
Order Types for Futures and Options - Electronic Platform Information Console - Confluence

I am sure the same thing applies to stock and I would encourage you to investigate.

Matt Z
Optimus Futures

There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.
The placement of contingent orders by you or broker, or trading advisor, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.

PM with any questions about optimusfutures (800) 771-6748 (561) 367 8686. THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES TRADING.
Reply With Quote
The following user says Thank You to mattz for this post:

Reply



futures io > > > > Question About Stop Loss

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)
 

Spring Grains Outlook w/Sean Lusk @ Walsh Trading

Elite only

FIO Video Journal Challenge featuring NinjaTrader ($2,000+ of prizes)

April

Process above all else w/Anthony Crudele @ Futures Radio Show

Elite only

Machine Learning - Quantitative Trading w/Martin Froehler @ Quantiacs

Elite only

Market Dynamics w/Peter Davies @ Jigsaw Trading

Elite only

Ask Me Anything w/Patrick Rooney @ Trading Technologies

Apr 18

Ask Me Anything w/FuturesTrader71

Apr 19

Machine Learning w/Kris Longmore

Elite only

Market Analysis w/Dave Forss

Apr 25

Introducing iSystems with Stage 5 Trading

Apr 27
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Stop loss modification olres7 NinjaTrader 6 April 12th, 2016 06:58 AM
Fee's For Stop Loss / Trailing Stop rkersh409 Brokers and Data Feeds 3 May 29th, 2014 04:15 PM
Ninjatrader strategy for Trailing Stop and stop loss. skann NinjaTrader 2 August 20th, 2013 07:34 PM
Set Stop loss gerimo NinjaTrader Programming 3 May 24th, 2012 01:36 PM
"Stop If Bid" command for entry's and stop loss arjfca EasyLanguage Programming 4 October 7th, 2010 05:05 PM


All times are GMT -4. The time now is 12:38 PM.

no new posts
Page generated 2017-03-27 in 0.18 seconds with 19 queries on phoenix via your IP 54.211.233.235