Friday, February 1, 2008

MSFT bids to buy YHOO, that's why I'm happy that I don't trade stocks

Let's say that you have nice big short position, maybe leveraged, that you are trailing. After news like today your stock gap up premarket 60%. How big are your loses?

In forex any such big news event can probably move market 100 pips or 200 pips in a second. But if you have some kind of stop, whatever the slippage you will be out of your position.

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