The great thing about spreads is they are defined risk, so in my humble
opinion that is your stop. I prefer to utilize position sizing because
the Bid/Ask Spread on Spreads tends to be wide unless you are trading only
on extremely liquid / high open interest positions. (QQQQ, GE, etc)
Joey
On July 13, 2009 at 4:51 PM cguy444 <carmelo5791@aol.com> wrote:
I believe this came up briefly in the past, but I was hoping we could reiterate this.
Question: "Do you use stops on your spread trades?"
I have been using stops; and I've been stopped out on a couple of positions where it would have been better to have no stop in place as the price reverted back promptly. I took a loss and didn't have to.
Thanks for the input!
Carmelo
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