Jump to content

How much is a point in CFD Stock trading?

Recommended Posts

Apologies if this is super obvious, but I literally can't find this anywhere on the IG help site or forums. And I've made the mistake 5 times now, trying to set trailing stops on a position but incorrectly calculating how much "1 point" actually is and getting stopped out.   Sometimes "1 point" seems to be $0.10, sometimes it seems to be $1.00. Help please! 

 

How much is 1 point when setting a trailing stop on stock in CFD trading?

I've found this from "Investopia":

Points in Stocks and Other Securities

Just to add to the confusion, a point has a different definition when used to describe the price movement of a bond, a futures contract, or a stock.

  • A two-point increase in a bond's price indicates a 2% change in its value, such as an increase from $10,000 to $10,200.
  • A two-point increase in a futures contract correlates to an increase of two-hundredths of a cent, the equivalent of 2% of a penny.

A two-point increase in the price of a common stock share is a $2 increase, such as a $100 stock rising to $102.

Share this post


Link to post

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
You are posting as a guest. If you have an account, please sign in.
Reply to this topic...

×   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.


×
×