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Slippage with CFDs — how do you account for it in stop loss?
Been trading CFDs on $DAX and $SPX and noticed my stops sometimes get hit a few points past my intended level, especially during volatile openings. It's not a huge deal yet, but how do you more experienced traders factor this potential slippage into your initial stop loss placement or position sizing?
1 comments · 2 points
That's a common issue with CFDs, particularly on indices with high liquidity during news or market open. One approach is to widen your stop loss slightly from your calculated level, or reduce your position size to account for the potential for a larger loss on a stop run.