triggering stoplosses

[WES]

is it possible that a buyer and seller will sell a share at a very reduced price just to trigger stop losses. Take Ciplamed for instance, it traded at 480 cents yesterday the whole day and when the market went into auction, suddenly Ciplamed did a trade in auction of 883 shares at 452 cents, triggering my stop loss.If so , does the JSE do anything about it ?

[SimonPB]

the JSE investigates laods .. they have the only real time survaliance team of any exchage ..

[Galuc]

it happens all the time specially low key shares, I attended a lecture by a trader, where he acknowledged that it happens all the time!

[SimonPB]

of course it can happen .. but shaking out a stop loss is not illegal .. and if you're repeatedly been shaken out then you need to revisit your placement of stops ..

[EkisDoep]

But will someone help me understand buying and selling currency features? If I sell the U$ZAR today because I think the ZAR will get stronger then I am going to try and sell it at a high price. Why would someone then buy it from me at a high price? And if I want to close the position in future I am going to try and buy it at a low price, am I then buying my own contracts or am I buying contracts from someone that wants to sell it at my price?

[ws]

Am I correct in saying that there is no guarantee that your stoploss will get you out? Had one on BIL and just went straight through?

[GarethJ]

You need to set a gap between the Trigger Price and the Limit Price e.g. Trigger 100c - Limit 95c. When the trigger is hit, the trade is placed, but will not trade below your Limit. If you don't leave a gap and the price is dropping fast your Limit will be missed. When placing a serious Stop on a volatile share it is sometimes good to make the limit fairly low. Your Stop Loss trade will still match at the highest current Bid Price. e.g Limit 85c - Bid 92c: You'll get 92c.