Go back to Contracts for Difference FAQs

Stop Loss Orders Questions and Answers

Q.
 Are there any risks with trading CFDs?
Q.
 What is a Stop Loss Order?
Q.
 How important are Stop Losses?
Q.
 What is the difference between sell Limit and sell Stop?
Q.
 In each of the following, what kind of order do I use?
Q.
 What are better - market or limit orders?
Q.
 On a fast and liquid share what would be the good, the bad and the ugly of placing market orders and same question for limit orders?
Q.
 But how can you place a stop-order so that it becomes a market order?
Q.
 What is an 'If Done' order?
Q.
 What is an OCO order?
Q.
 What are linked stop loss orders and linked limit orders?
Q.
 What is a Trailing Stop?
Q.
 What is an Iceberg Order?
Q.
 Where should I place the stop loss?
Q.
 Shouldn't a trader stick to his opinion?
Q.
 How important is risk management?
Q.
 Expert traders recommend a 1% or 2% stop loss rule of your total pot (per trade) - but how do you determine the stop loss level?
Q.
 But stop losses don't guarantee 'a get' out do they? If the market tanks or skips past your stop you can lose a lot right?
Q.
 What is the difference between stop losses and guaranteed stop losses?
Q.
 Is using Guaranteed Stop Losses worthwhile?
Q.
 When might the use of a Guaranteed Stop Loss be considered?
Q.
 Do brokers charge for modifying/cancelling orders?
Q.
 Can I amend stop loss orders when the market is closed?
Q.
 If I put an order to buy 600 shares at $1 and the order is executed in 3 parts of 200 shares...do these 3 partials executions count as 3 opening positions or only 1?
Q.
 How do I use an Index CFD to hedge my share portfolio against further downturns?
Q.
 If I were to take a short on the FTSE what other trade would you make to hedge against it going up?
Q.
 I've got 100:1 leverage with my CFD broker (and they offer even higher! 200:1 crazy!!!)
Q.
 How do I fund my CFDs account?

 ...Continues here - Advanced FAQs addressed here

Please do not copy/paste this content without permission. If you want to use any of it on your website contact us via email at  traderATcontracts-for-difference.com (remove the AT and substitute by @).