Closing a trade
- A trade can only be closed during market hours. For example the FX/Currency markets are open from 22:15 Sunday, right through to 21:15 Friday. FTSE share trades can only be closed between 08:00 and 16:30 Mon-Fri when the London Stock Exchange is open
- A trade can be closed when an attached stop or limit order triggers and is filled. Remember for FX trades, this will only happen when the FX/Currency markets are open from 22:15 Sunday, right through to 21:15 Friday.
- Note: For UK shares markets are open between 8am and 4.30pm.
- A trade can also be closed immediately during market hours by placing a trade at current market price over the internet using the ‘Close Deal’ button in the ‘Position Summary’ to request a quote, this will open a Deal Ticket in the top right of the trading platform, it will only let you sell if you are long or buy if you are short.
- A trade can also be closed over the phone with the dealers.
Haven’t written for a while. Not much has changed in the bank account balances, have a number of trades on at the moment, will see what happens with them. I’ve been generally putting smaller bet sizes and it definitely is a much better way to trade – takes the emotion out of it somewhat. Also, I’m trading with set stops and planning on not selling so quickly, rather to wait till the share moves into profit, adjust the stop to the buy level then my initial stake is free to use again (or the trade gets stopped out at a known amount of course).
- This is where an instrument’s (for example a share) price movement is not continuous e.g. 1,2,3,4,9,10,11. In most cases this happens on market opening which for example is 22:15 on Sunday evening for FX markets and 8am for UK shares. It is most commonly the result of overnight movements on other markets. Instrument specific data can come out over night or in the day and can cause a gapping of prices.
- There are other reasons for gapping such as economic announcements, natural disasters etc. The effect is that a stop or stop-loss will be subject to a gap in the price.
- For example: Company ‘xyz’ had a closing price of 100 pence. You have a stop-loss in place protecting your position at 95 pence. Overnight the company reports poor economic results. The stock opens at 90 pence. You will be filled at 90 pence minus the spread.
- With limits orders you can experience favourable Gapping, where your price is improved.