Question about how profit is added to account

[MrMicawber]

Hi all, complete noob to trading - I've been playing with a demo account for a few weeks, today opened a live Spread Betting account.

Dipping toes very cautiously into water as follows:

• Deposited £250
• Opened a position at 25p per point to short the FTSE (sell at 5942.2)
• Closed the position (buy at 5936.9)
• Notification stated £1.33 profit as expected
• However funds now read £250.13, ie only 13p of profit.

How come the full £1.33 wasn't added?

 

[CharlotteIG]

16 hours ago, MrMicawber said:

Hi all, complete noob to trading - I've been playing with a demo account for a few weeks, today opened a live Spread Betting account.

Dipping toes very cautiously into water as follows:

• Deposited £250
• Opened a position at 25p per point to short the FTSE (sell at 5942.2)
• Closed the position (buy at 5936.9)
• Notification stated £1.33 profit as expected
• However funds now read £250.13, ie only 13p of profit.

How come the full £1.33 wasn't added?

 

Thanks for your post. 

You're correct the profit on the account should be (5942.2 - 5936.9) x 0.25 giving you a profit of £1.33. 

If this is not reflecting on your account please reach out to our help desk on helpdesk.uk@ig.com so they can look into this. 

All the best 

[MrMicawber]

55 minutes ago, CharlotteIG said:

....

You're correct the profit on the account should be (5942.2 - 5936.9) x 0.25 giving you a profit of £1.33. 

If this is not reflecting on your account please reach out to our help desk on helpdesk.uk@ig.com so they can look into this. 

....

Thanks for this - but I think it's ok.  I did some further research, and discovered the Trading Analytics function under 'My IG'. 

This referenced the adjustment, and I now understand how Dividend Adjustments work!  I had closed the position a little after 4.30pm and hadn't understood the significance of this.

So the discrepancy was just a consequence of my ignorance.  I clearly have a lot to learn!

 

Edited September 3, 2020 by MrMicawber

[dmedin]

Check out the weekly dividend post (at the top of the forum), if you're short the FTSE on c^m-dividend day then you will get whopped with a fee at 16:30 in addition to the daily interest fee.  (But if you're long, you will be credited the dividend at 16:30 😇 )

Edited September 3, 2020 by dmedin

[MrMicawber]

2 minutes ago, dmedin said:

Check out the weekly dividend post (at the top of the forum), if you're short the FTSE on c^m-dividend day then you will get whopped with a fee at 16:30 in addition to the daily interest fee.  (But if you're long, you will be credited the dividend at 16:30 😇 )

Cheers!  Yes, I discovered that post too after a bit of searching.