Stop Loss question

[alan]

Can one of you clever people out there briefly explain the difference (in layman terms) between Sliding and Level Stop Loss? I am confused!

Alan

[alan]

Just to add, I have a Trigger LAY-SLF1.31-S-IP which LAYs at odds of two. Would this place a BACK bet if the odds went from 2 to 1.31

[osknows]

A stop loss is fixed and won't move. So if you have a stop loss at 20% it will trigger when the market moves 20% against you from the point you entered the market.

A sliding stop loss continually updates and moves the 20% when market moves in your favour. So if the market moves in your favour by 50% the 20% stop loss is now based on the new position and not when you first entered the market. This allows you to profit more from gains and cuts out when things swing toward loss.

The LEVEL part just means that you hedge the profit against all outcomes rather than a single outcome.

[alan]

Ok, but would my trigger work as I understand it?

[GaryRussell]

Just to add, I have a Trigger LAY-SLF1.31-S-IP which LAYs at odds of two. Would this place a BACK bet if the odds went from 2 to 1.31

Yes, that is correct. If the best lay odds go down to 1.31 or below then the stop loss will be triggered. The odds requested will be the best lay odds minus 1 tick. Also because it is sliding, if the best lay odds go up, every time it reaches a new high the 1.31 odds will be increased by the relative number of ticks.