What you want is a stop limit order. Once the stop level is reached then a limit order is created. Usually this is set a few pennies away from the stop level to allow for bid offer spreads. A stop (market) order is a potential recipe for disaster if hit during illiquid times or with an illiquid stock, as you have unfortunately found out.
I have traded for a long time but have never used a stop market order, only stop limits.
A stop-limit would have helped in this scenario, but it’s not a silver bullet. For example, if the after the 20% drop, it just kept on ticking down. You’d then have a limit order above the actual market price and would lose even more.
Stop losses are not guaranteed. The only place I’ve seen that is with spread betting and then it’s not available on everything. In particular, it’s unavailable for the most risky shares!
I feel your pain @DCL9 , this happened to me (more than once) when I first started investing.
I’ve seen people asking about being able to trade out of hours. This sort of thing would be even more common outside of normal hours.
An Australian broker I use has two types of conditional sells: stop loss and take profit.
Each has three sub types: at market, set limit, and trailing.
Freetrade’s stpp loss is the ‘at market’ sub type where they place a normal market sell order triggered by a trade at or below the price you set.
It would be good if Freetrade added the other two.
Set price is what is being discussed. Its triggered the same way, but you also set the lower limit price to sell at. This has the risk @Anders mentioned of not actually making a trade.
Trailing is powerful. Its like an ‘at market’, but you set an amount you want to trail by and it adjusts your trigger as the proce moves up. For example, you might say £2.50 trail amount on a £10 share. Initially, your stop loss would trigger at £7.50, but if the share price went up, say to £11, your trigger moves up to £8.50 accordingly.
You could combine these into some even more powerful options. Hopefully FT are thinking of offering a bit more control.
Can I check my understanding please. I’ve been having issues with ft and accused of just moaning so I started looking to go elsewhere. I buy at an agreed price and execute then they do somthing entirely different. I was told to use stops on everything buy and sell and was made to look a prat. Then they took my post down. Is this still happening please? I bought for 96 and the order went thru at 112 or somthing like that. So when I hit the buy or sell I’m not actually getting what I’ve agreed to…
You never pre-agree a price. The prices on Freetrade are indicative (the information on the time of the last price is in each stock page), when you place a buy or sell order Freetrade retrieve quotes and take execute the order on the best one.
This is how a lot of brokers work, there’s a few other options though. For example HL will give you a 15 second quote that you can accept or decline. This is an agreement you can accept or decline. Note though that the prices including live prices on HL are also indicative until you place a buy or sell and get a quote to accept or decline.
Other platforms like 212 also use indicative prices, the price on the stock is not necessarily the current live price, and indeed they’ve had stocks with price info weeks out of date.
As mentioned limit orders etc will allow you to make trades at the specific prices you are looking for.
Hope that helps
A triggered order is an agreed price! Then when I trigger an order it misses placing it and I have to buy in at a higher price. I know the price is indiciitive in use ig for live prices and will look to move my trading to them as you just don’t get what you ask for with ft
Claire, Freetrade is a broker not a retailer. No broker can guarantee that they will get a specific price because the broker is not the entity selling the stock to you. They go out and find a seller on your behalf; the seller also wants to get the best price for themselves.
With a triggered order you trigger the broker to go out and get the best price that they can when the indicative price reaches the target that you set. It does not guarantee that you will get the price that you want.
Where a Triggered Order executes, the actual execution price you receive may be higher or lower than the Trigger price due to market prices moving between an instruction triggering and the order executing, or due to differences between prices published in data feeds and the price at which our market counterparties or other market participants available to us are willing to execute a buy or a sell order.
Claire, IG offer a ‘quote price’ which is what you may be referring to.
Example of a quote price
Let’s say a buyer is willing to pay £32.00 for a share but a seller wants to sell their shareholding for £34.00. The quote price is determined by the price at which the buyers and sellers agree to exchange the stock for. In this case, they might compromise in the middle and the quote price becomes £33.00.
Are you referring to a triggered order or when you make an immediate buy or sell order? A triggered order is a specific type of order, @Sleepy gives a good explanation of this. Even in this case a triggered order (one that you setup in advance to sell when reaching a target price) is just that, its an order to execute buy or sell when a stock reaches a certain price, not and order to buy or sell at that specific price you set. Neither a triggered not immediate order give you an agreed price before sending the order.
As @thinking_hydrogen points out, a quote price is a specific function that Freetrade don’t currently offer, as i mentioned earlier HL also offer 15 second quotes.
I very much want quotes on Freetrade in the future, but its not a thing right now, and Freetrade have never suggested it was.