Question about limit/stop positions

Hello,

I’ve recently moved to Trading 212 and have a question. It would be amazing if someone could enlighten me? I’ll use Oil for an example.

When I go to open a trade and click the “market” tab, it’ll ask me to put in a quantity. It displays beneath the quantity how much it’s going to take out of my wallet, which is great.

When I click the “limit/stop” tab to open a trade at a specific price (want to buy a dip), it asks me to put in a quantity, but doesn’t tell me how much it’s going to take out of my wallet. If I do something like 500 quantity, it’ll say “The maximum quantity you have funds to buy is ‘x’”. So it clearly knows how much it’s going to cost vs how much is in my wallet. Why should I have to do a calculation before doing a limit/stop trade, unless I’m being ignorant and missing something?

Thanks! :slight_smile:

One of the reasons could be the currency rate difference.
Rates change day by day, so the price could be vastly different once it hits your target price.

I see where you’re coming from and that makes perfect sense. Although it would be nice if it told me how much it would cost me at it’s current rate. As the dips I’m buying are a matter of pennies.

For example oil is currently 39.406. I’d put a limit/stop in for 39.300 which really wouldn’t make that much of a difference with the exchange rate.

But I definitely see where you’re coming from.

Yea, other than that I don’t really know why else.
I’m mainly a buy ’ n ’ hold trader, but the FX rate is the only other thing I can assume being the reason why. :slight_smile:

Thank you for your fast reply. Yeah, that makes sense. I do it more as a hobby to pass time during the day etc. So I’m a very short term trader. Bit annoying having to do a calculation to open a trade considering prices shoot up and down so fast, by the time I’ve calculated how much of my wallet I want to put in, the price has changed again! haha.

1 Like

I sometimes play around with the practice CFD account, they way I get around it is work out my price ranges ahead of time and then set LIMIT buys or LIMIT Sells far away and then slowly add more closing into the current price.

That way you can buy in at levels you have already worked out etc.
Not sure if this applies, but maybe another way to look at it ? :slight_smile:

I’ll have a look if that works with what I’m trying to achieve :slight_smile:

Thank you though. It’s appreciated!