Question about limit/stop positions

šŸ¤ Help
1

Hello,

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

When I go to open a trade and click the ā€œmarketā€ tab, itā€™ll ask me to put in a quantity. It displays beneath the quantity how much itā€™s going to take out of my wallet, which is great.

When I click the ā€œlimit/stopā€ tab to open a trade at a specific price (want to buy a dip), it asks me to put in a quantity, but doesnā€™t tell me how much itā€™s going to take out of my wallet. If I do something like 500 quantity, itā€™ll say ā€œThe maximum quantity you have funds to buy is ā€˜xā€™ā€. So it clearly knows how much itā€™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 Iā€™m being ignorant and missing something?

Thanks! :slight_smile:

2

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.

3

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

For example oil is currently 39.406. Iā€™d put a limit/stop in for 39.300 which really wouldnā€™t make that much of a difference with the exchange rate.

But I definitely see where youā€™re coming from.

4

Yea, other than that I donā€™t really know why else.
Iā€™m mainly a buy ā€™ n ā€™ hold trader, but the FX rate is the only other thing I can assume being the reason why. :slight_smile:

5

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 Iā€™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 Iā€™ve calculated how much of my wallet I want to put in, the price has changed again! haha.

1 Like
6

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:

7

Iā€™ll have a look if that works with what Iā€™m trying to achieve :slight_smile:

Thank you though. Itā€™s appreciated!