Jump to content

New platform feature: Deal position preview

DanielaIG

On the back of client feedback and the success experienced on the IG apps, we have now added the deal position preview functionality to the web dealing platform. This feature is automatically enabled on the new dealing platform. To disable it, right click on the graph and select Position Preview from the “show” dropdown.

What does this feature tell me?

When filling in a deal ticket, new visual features will appear on the graph. When the direction (buy or sell) is selected, a shaded area will appear above (if buying) or below (if selling) the current price. This area will show the price the market needs to touch to profit from the transaction. The shaded area will not start from the price you executed the trade at, as the market needs to move in your favour by the size of the spread before you are at break-even.

1.png

  1. In the example the Buy price is 1239.39
  2. The blue ‘profit level’ is displayed at the executed deal price +/- the spread

It's important to remember the price level on the chart can either be the bid (buy), mid or ask (sell). For the 'profit level' to work properly will require you to have the correct price level displayed on the chart. You can select this by right clicking on the chart and selecting bid (if you're buying) or ask (if you're selling).

Adding a stop

If a stop is added, a new shaded area will appear in the opposite direction. This will give a visual representation of the range of movement your position has before the stop is triggered and your position is closed out.

2.png

Adding a limit

By adding a limit, a risk/reward ratio will appear. This will compare the expected return of the position with the amount of risk undertaken to capture such returns via the ‘Risk/reward ratio’.

3.png

What is the risk/reward ratio?

This ratio is used to assess the potential for profit relative to the potential for loss. Risk is determined by a stop loss, and reward is determined by the limit. If the risk/reward metric is 1:5, it means that a trader expects five units of expected return per every unit of additional risk, this gives a ratio of 0.2. If the ratio is greater than 1, then the risk is greater than the potential profit on the trade.

It is important to keep in mind that, whilst a low risk/reward ratio of 0.2 is very attractive, you need to consider the odds that the profit target will be reached before your position is closed out if the stop is triggered.



2 Comments

Recommended Comments

On 20/12/2018 at 06:48, Bullan said:

Hi,

Is this available on the IG mobile apps?

Thanks

Hey @Bullan. It is indeed available if you're on the full screen chart. You can also edit the preview from the chart on mobile!

Share this comment


Link to comment

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Add a comment...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Blog Statistics

    • Total Blogs
      3
    • Total Entries
      396
  • Our picks

    • ASX Rallies on Weak Australian Dollar - EMEA Brief 22 Feb
      The AUD continues to trade lower following the Chinese ban of Australian coal to its Dalian port. The ASX has benefited for the weaker exchange rate as it is trading at its highest level since October.
      • 0 replies
    • Wall street pull back - APAC brief 22 Feb
      Wall Street pulls back: On balance, and with Wall Street a few hours from ending its session, it's been a soft 24 hours for equities. The often heard calls of a looming "new-peak" in the market in the shorter term can be heard from some. Momentum has certainly slowed down. The S&P500 has its eyes one 2815 again - that crucial area where that index sold off on three occasions from October to December last year. It could be a slow drive to arrive at a challenge of that level now. The dovish Fed will keep the wind behind US stocks; but the earnings outlook, post reporting season, has dimmed on Wall Street, while positive regarding the trade war has already been heavily juiced.


      Trade war truce already priced in? Markets are positioned for a relatively positive outcome in the trade-war, and that's manifesting in pockets of market activity. A true resolution in the trade war isn't expected, however an extension to be March 1 trade-truce-deadline seems to be. The overnight fall in US Treasuries, coupled with a topside break of copper's recent range, is a testament to this sentiment. The yield on the US 10 Year note has jumped back towards 2.70 percent, while the 3 month copper contract on the LME leapt another 0.83 per cent overnight. In G4 currencies, the US Dollar is stronger against the Euro and Pound, albeit very, very marginally, but weaker against the Yen.

      The curious case of gold: Gold prices have dipped slightly courtesy of the stronger Dollar and greater confidence in the policy-outlook for the world's major central banks. The price of the yellow metal is sitting just above $1325 presently, as it continues its short term trend higher. One of the more divisive debates amongst traders currently is the outlook for gold. Like any market, time horizons are crucial to illustrating the trend for an asset's price.
      • 0 replies
    • Galaxy Fold: Future or Gimmick Feature? - EMEA Brief 21 Feb
      Samsung announced the Galaxy Fold the first consumer available phone to feature a folding display. The new phone also comes with a $1,980 price tag.  
        • Like
      • 1 reply
  • Latest Forum Topics

×