How to apply a stop

A guide to controlling your risk using stops

Stop losses offer a great way of managing risk when trading on your IG account. Here’s a guide to placing different types of stop on new or existing trades.

Basic stops

You can add stops to new trades using the deal ticket by clicking where it says ‘close conditions’. 

Switch between setting your stop in market points or in your chosen currency, using the two buttons at the top. There is a minimum distance you have to place your stop from the current market price, which is displayed where it says (Min: ).

For existing trades, click on the market name under ‘open positions’ on the platform, and you’ll be presented with the same deal ticket. Once again, place a stop under ‘close conditions’.

Guaranteed stops

If a market gaps or hits a period of high volatility, then your stop could trigger at a worse level than the one specified. To be certain that your stop will trigger at the right level, tick the ‘guaranteed stop’ box on the deal ticket. Guaranteed stops incur a premium if they are triggered, which will be taken out of your total funds.

Trailing stops

Trailing stops not only help to manage losses, but can also protect your profits. If you don’t have the option to add a trailing stop on the deal ticket, then you’ll need to enable them. To do so, go to ‘my account’, click ‘settings’, then ‘preferences’, and ‘allow trailing stops’. You’ll have to save your choice by hitting ‘set preferences’.

Now you should be able to set a trailing stop under ‘close conditions’ on the deal ticket. Once you click ‘trailing stop’, you’ll need to set your step size where it says ‘trailing with step’. This dictates how closely the trailing stop moves with the market price. So if your step size is five points, then every time the market moves up five points, your stop will move five points to follow it.

Discover our free trading courses

Learn from our experts at IG Academy, with step-by-step online courses, plus webinars and seminars designed to help you build your trading skills.

You might be interested in...