Tradefair & Financials
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I'm thinking of starting to use tradefair being unhappy with IG. I'm slightly confused though by I notice on their site it says "a stop loss is automatically attached to every opened position"
How do they decide where the stop loss goes?
How do they decide where the stop loss goes?
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From their website:-
Scenario 1
You have exactly £300 in your account
In the case of the FTSE, the minimum margin is 30 and the maximum computer generated stop-loss is 150. This is the maximum in margin it will hold for a £1 position. So with the trade example above, the minimum margin required, which you must have in your Tradefair Spreads account is 30 x 10 = £300 and because you are 'buying' the FTSE, the stop-loss would be placed 24 points below your entry price
(80% of the margin - it's 80% to help prevent your account going into a negative balance).
Scenario 2
You have £10,000 in your account and are placing the same trade
In this case, the Tradefair Spreads platform will take the maximum amount of margin required (150) and place the automatic stop-loss 120 points below your entry price (80% of the margin). If the market falls 120 points, your trade will be stopped automatically and on this occasion you would have lost £1,200. The stop loss was placed 120 points away because this is 80% of the maximum computer generated stop loss.
Scenario 1
You have exactly £300 in your account
In the case of the FTSE, the minimum margin is 30 and the maximum computer generated stop-loss is 150. This is the maximum in margin it will hold for a £1 position. So with the trade example above, the minimum margin required, which you must have in your Tradefair Spreads account is 30 x 10 = £300 and because you are 'buying' the FTSE, the stop-loss would be placed 24 points below your entry price
(80% of the margin - it's 80% to help prevent your account going into a negative balance).
Scenario 2
You have £10,000 in your account and are placing the same trade
In this case, the Tradefair Spreads platform will take the maximum amount of margin required (150) and place the automatic stop-loss 120 points below your entry price (80% of the margin). If the market falls 120 points, your trade will be stopped automatically and on this occasion you would have lost £1,200. The stop loss was placed 120 points away because this is 80% of the maximum computer generated stop loss.
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