Jump to content

Closing Only


Recommended Posts

I think if IG is a reputable company and wishes to exit small caps spread betting it ought to close to new bets but allow customers three months to exit their positions at their own speed. 
 

I personally use spread bets to avoid capital gains so would still be interested in trading these stocks even with 100% margin requirements. 

Link to comment

@CharlotteIGi would be interested in your views. 

 

I think if IG is a reputable company and wishes to exit small caps spread betting it ought to close to new bets but allow customers three months to exit their positions at their own speed. 
 

I personally use spread bets to avoid capital gains so would still be interested in trading these stocks even with 100% margin requirements. 

Link to comment

I agree with MalcolmBell1

there have been several occasions where I have been unable to open a position on an aim company. I have then resorted to buying via a broker. Defeats the purpose of having an account with IG if your only interest is in AIM. 

 

Link to comment

If IG is a genuinely responsible company which I believe it is then it must treat customers with open positions fairly - its one thing to cease allowing customers to open new positions but if a customer has a position in a stock open they must be allowed to exit when they want over 3-6 months. It would be responsible to increase margin rates only a certain amount (why not 50% so its half way / treating customers fairly?), give a month's notice and not to impose a deadline on having to exit the stock any less than 3 months away. It seems outrageous after this three month period not to then allow open positions at 100% margin. The FCA would surely be horrified at hundreds of customers being forced sellers of stocks with a few days notice.

Edited by Malcolmbell1
  • Like 1
Link to comment

@CaseyNotes:

I am asking you and I am saying that a post about men's Jean pockets has nothing got to do with the very serious question of IG setting positions to "closing only" nor the hypothesis being promulgated on social media that up to 1000 IG product offerings will be set to 100% margin on 26 February thus requiring clients to deposit money to fully fund positions or potentially suffer forced closure.

Now if you are trying to obfuscate the thread it would say something for itself.  We have had IG on the thread already and we do need IG coming back in the thread to clarify what their intention is.

Link to comment
3 minutes ago, StormChaser said:

@CaseyNotes:

I am asking you and I am saying that a post about men's Jean pockets has nothing got to do with the very serious question of IG setting positions to "closing only" nor the hypothesis being promulgated on social media that up to 1000 IG product offerings will be set to 100% margin on 26 February thus requiring clients to deposit money to fully fund positions or potentially suffer forced closure.

Now if you are trying to obfuscate the thread it would say something for itself.  We have had IG on the thread already and we do need IG coming back in the thread to clarify what their intention is.

And the point I am making is that IG has always shied away from markets if they become high risk, that's what their traditional client base expects. 

I and most other IG clients expect IG to close the book on any particular market if and when risk endangers all clients.

I was glad everytime IG closed the book on Bitcoin during late 2017 and on many other markets since.

There are plenty of other brokers who exercise a higher risk business model. Use them.

 

.

  • Like 1
Link to comment

It is NOT OKAY to close the book on open positions AND increase the margin with virtually NO NOTICE.  That is what is being discussed here.  Clients enter into a trade with certain expectations about their cash flow and to suddenly change that is unacceptable.  I have already said that.

I doubt you would be so glad if the book was closed on something that caused you to have to prematurely liquidate or raise cash to keep open.

I'd rather the Administrators respond to this rather than an IG forum fan boy.

  • Like 1
Link to comment
8 hours ago, StormChaser said:

It is NOT OKAY to close the book on open positions AND increase the margin with virtually NO NOTICE.  That is what is being discussed here.  Clients enter into a trade with certain expectations about their cash flow and to suddenly change that is unacceptable.  I have already said that.

I doubt you would be so glad if the book was closed on something that caused you to have to prematurely liquidate or raise cash to keep open.

I'd rather the Administrators respond to this rather than an IG forum fan boy.

Actually the OP of this thread was about 'closing only' and SPACs, you must be meaning a different thread. IG have always used closing only when markets suddenly go one way and high risk and the margin requirement does change for the same reasons, they have only ever said they will try to give advanced notification.

Are you sure you're not in the wrong shop? Maybe you should try Robinhood, oh wait, they're nearly bust aren't they.

Link to comment
6 minutes ago, Caseynotes said:

Actually the OP of this thread was about 'closing only' and SPACs, you must be meaning a different thread. IG have always used closing only when markets suddenly go one way and high risk and the margin requirement does change for the same reasons, they have only ever said they will try to give advanced notification.

Are you sure you're not in the wrong shop? Maybe you should try Robinhood, oh wait, they're nearly bust aren't they.

IG will force close all those positions after 30 days, it's not just a margin requirement thing, they will not allow us to keep our positions even if we have the margin. Doesn't make any sense at all.

Link to comment

What fun when a broker goes bust, remember IronFX and the Chinese traders who charted a plane to take them to protest outside the regulators office for weeks on end? Didn't do them any good though.

What about that slow mo car crash that was FXCM, wiped out in the SNP peg move, had to borrow massive to try to keep going til SEC finally shut them down as the were just running on fumes.

Took years to sort out clients money, some got some back some got nothing, tough.

One of the big changes introduced by ESMA in 2018 was the introduction of negative account protection, that shifted a lot of risk onto the broker and there was always going to be a price for that.

Personally I have always avoided the higher risk markets, remember late 2017 when everyone was piling into crypto? Go long, couldn't lose - except most did because the intraday swings were so violent poor peeps were continually getting stopped out on the bounce. I was reminded of that when looking at the intraday GameStop chart, on the daily it looked like a one way ride but intrady price was swing 150% up AND down. Hard to control risk on that sort of market.

Most of IG's current clients would leave IG if they were ever seen to be a high risk broker.

 

.

Link to comment

I am a premium client and was not contacted. I am very angry about this and the false market that was created - i phoned last week to ask why my stocks were close only but was told completely incorrect information. These are equities  - i absolutely do not get forced closure under the spread bet wrapper with a few days notice and differential disclosure to different clients, fair enough increasing margins. There is no doubt Ig moved these markets in the last few days as a result. A reputable company would have allowed customers 6 months to close. Maintaining dealing account dealing in these stocks suggests they should have maintained spread betting for the tax benefits at 100% margin.

  • Like 1
Link to comment
20 hours ago, StormChaser said:

Charlotte: There's commentary doing the rounds on Twitter that IG is going to raise the margin on a whole range of stock SBs to 100%?  Is this true?  I have received no notice to this effect.

Here is the information you need regarding the stocks we've set to closings only on leverage: 


We constantly review the products we offer in line with client demand. We have reviewed associated returns across our 12,000 leveraged share markets and decided to withdraw around 900 small-cap shares for spread betting and CFD accounts. These markets will continue to be available for share dealing – find out how to open a share dealing account below.

The list of affected shares that will be withdrawn from spread betting and CFD accounts are listed in this PDF. Please read on for details about the process, but in summary:

1.We are increasing margins so that all positions on these shares will have a margin requirement of 100% at 3pm on Friday 26 February

2.Please close positions by Monday 29 March 2021, from which point we will start to close any remaining open positions

3.You will still be able to buy the majority of shares outright using our share dealing service

What happens next?

For a small subset of the affected markets (listed as ‘set 1’ in the PDF), margin requirements are already at 100%. For the remaining markets (listed as ‘set 2’ in the PDF), margin requirements will increase to 100% from 3pm (UK time) on Friday 26 February.

You have until Monday 29 March 2021 to close your open positions on affected markets, from which point we will start to close any positions still open. Positions will be closed as soon as practical from this point, while ensuring that all reasonable steps are taken to obtain the best results for our clients. This action is taken in accordance with Term 28(3) of the latest version of the applicable customer agreement governing your account(s) with IG.

We encourage you to review your exposure and consider how best to manage your position(s). Should you wish to maintain your existing position(s) with IG in the short term, please ensure that you have enough money on your account(s) to cover the new margin requirements.

We understand that you may need time to decide what to do, or to seek alternative exposure. Nonetheless, we urge you to close your position(s) before Monday 29 March to ensure that you have discretion over the closure.

Can I invest in these markets via share dealing?

Yes, most of them will remain available via share dealing. While you won’t be able to transfer existing leveraged position(s) from a spread betting or CFD account to an IG share dealing account, you can use an IG share dealing account to buy the majority of affected shares outright.

To add a share dealing account if you don’t already have one, log in to My IG and click ‘add account’, then ‘share dealing’ – or simply click the button below.

Link to comment
4 minutes ago, CharlotteIG said:

Here is the information you need regarding the stocks we've set to closings only on leverage: 


We constantly review the products we offer in line with client demand. We have reviewed associated returns across our 12,000 leveraged share markets and decided to withdraw around 900 small-cap shares for spread betting and CFD accounts. These markets will continue to be available for share dealing – find out how to open a share dealing account below.

The list of affected shares that will be withdrawn from spread betting and CFD accounts are listed in this PDF. Please read on for details about the process, but in summary:

1.We are increasing margins so that all positions on these shares will have a margin requirement of 100% at 3pm on Friday 26 February

2.Please close positions by Monday 29 March 2021, from which point we will start to close any remaining open positions

3.You will still be able to buy the majority of shares outright using our share dealing service

What happens next?

For a small subset of the affected markets (listed as ‘set 1’ in the PDF), margin requirements are already at 100%. For the remaining markets (listed as ‘set 2’ in the PDF), margin requirements will increase to 100% from 3pm (UK time) on Friday 26 February.

You have until Monday 29 March 2021 to close your open positions on affected markets, from which point we will start to close any positions still open. Positions will be closed as soon as practical from this point, while ensuring that all reasonable steps are taken to obtain the best results for our clients. This action is taken in accordance with Term 28(3) of the latest version of the applicable customer agreement governing your account(s) with IG.

We encourage you to review your exposure and consider how best to manage your position(s). Should you wish to maintain your existing position(s) with IG in the short term, please ensure that you have enough money on your account(s) to cover the new margin requirements.

We understand that you may need time to decide what to do, or to seek alternative exposure. Nonetheless, we urge you to close your position(s) before Monday 29 March to ensure that you have discretion over the closure.

Can I invest in these markets via share dealing?

Yes, most of them will remain available via share dealing. While you won’t be able to transfer existing leveraged position(s) from a spread betting or CFD account to an IG share dealing account, you can use an IG share dealing account to buy the majority of affected shares outright.

To add a share dealing account if you don’t already have one, log in to My IG and click ‘add account’, then ‘share dealing’ – or simply click the button below.

So in reality what will happen is that IG will catch your clients out because many will not have the funds available to meet the 100% margin required by 26th February.

They will then go on margin call and be forced to close on Friday or Monday rather than having until March 29th.  This is likely to force some clients to have to liquidate and accept losses on positions which might have pending newsflow which would make them come good.

Whether or not this is within IGs terms or not, it is going to make IG look very bad.  If there are 900 stocks there are likely to be many hundreds, if not thousands, of affected clients.

It would be difficult to justify maintaining a relationship with IG following this action.

  • Like 3
Link to comment

As I already said to my account manager, if I'm forced out of any positions I'm leaving. It doesn't matter if the decision comes from the CEO or not, this is my personal choice. I want to be doing business with a company that has my interests at heart too, not just theirs. To ask me to close out my positions while I still have the money in my account doesn't make any sense at all. If IG doesn't have the money to hedge just issue senior notes or a common offering to raise funds. It's very easy to come up with funds. At least leave us the choice to transform the CFD to a common stock, this choice is not available to me. Why ? You should give us more time than just 30 days, at least 6 months to close our positions. 30 days will force many of us to close trades at very unfavorable prices, booking losses. 

Link to comment
1 hour ago, StormChaser said:

So in reality what will happen is that IG will catch your clients out because many will not have the funds available to meet the 100% margin required by 26th February.

They will then go on margin call and be forced to close on Friday or Monday rather than having until March 29th.  This is likely to force some clients to have to liquidate and accept losses on positions which might have pending newsflow which would make them come good.

Whether or not this is within IGs terms or not, it is going to make IG look very bad.  If there are 900 stocks there are likely to be many hundreds, if not thousands, of affected clients.

It would be difficult to justify maintaining a relationship with IG following this action.

 

47 minutes ago, Joo said:

As I already said to my account manager, if I'm forced out of any positions I'm leaving. It doesn't matter if the decision comes from the CEO or not, this is my personal choice. I want to be doing business with a company that has my interests at heart too, not just theirs. To ask me to close out my positions while I still have the money in my account doesn't make any sense at all. If IG doesn't have the money to hedge just issue senior notes or a common offering to raise funds. It's very easy to come up with funds. At least leave us the choice to transform the CFD to a common stock, this choice is not available to me. Why ? You should give us more time than just 30 days, at least 6 months to close our positions. 30 days will force many of us to close trades at very unfavorable prices, booking losses. 

I'm going to pass all feedback onto our senior team regarding these changes.

Apologies again for the inconvenience but know these comments are getting pushed to senior teams so thank you for posting them. 

All the best. 

Link to comment
Guest Magnolia

Why would anyone want to open a position in a market that is still available if IG might decide to terminate that market with no notice in the future? It isn't just small caps that are affected, Hikma is a FTSE100 company - why is that on the list?  and there are several FTSE250s that I've spotted e.g. Hiscox, Hochschild

Link to comment

I've already had to close a number of positions which were significantly up today, but which I expected more to come - mainly commodity related ETF's. This has hurt my trust in IG and the damage is already done as far as I'm concerned as i've now been forced to make a decision in preparation for Friday.

  • Like 2
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • General Statistics

    • Total Topics
      21,310
    • Total Posts
      90,974
    • Total Members
      41,442
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    TeeKay
    Joined 09/02/23 08:23
  • Posts

    • Texas Instruments Inc., Elliott Wave Technical Analysis Texas Instruments Inc., (TXN:NASDAQ): Daily Chart, 9 February 23 TXN Stock Market Analysis: Moving as expected from the previous update. We are looking for further downside into wave {c} of 2 as the move up that broke the top of wave 1 was a clear three wave move and therefore could not be impulsive. TXN Elliott Wave Count: Wave {c} of 2. TXN Technical Indicators: broke below the 20EMA. TXN Trading Strategy: Looking for a break of wave (b) before considering shorts. TradingLounge Analyst: Alessio Barretta Source : Tradinglounge.com get trial here! Texas Instruments Inc., TXN: 4-hour Chart, 9 February 23 Texas Instruments Inc., Elliott Wave Technical Analysis TXN Stock Market Analysis: It looks like we are in wave (iii) already as we are breaking through the moving averages.  TXN Elliott Wave count: Wave (iii) of {c}. TXN Technical Indicators: RSI momentum is lower than it was in wave (b). TXN Trading Strategy: Looking for at least a pullback in wave (iv) to consider shorts.
    • Gold on the rise, as Brent crude and natural gas show signs of impending weakness Ongoing trends look likely to continue, with gold grinding higher as Brent crude and natural gas show signs of potential impending weakness. Source: Bloomberg      Joshua Mahony | Senior Market Analyst, London | Publication date: Thursday 09 February 2023  Gold grinds higher after collapse into trendline support Gold ended last week with a bang as price collapsed into a fresh four-week low. However, despite growing calls for a reversal across a number of asset classes, this week has seen equity markets and the dollar turn back in the direction of their prevailing trend. Given the close correlation between the dollar and gold, this signals the potential for another move higher for precious metals if money does not flow into the dollar. For gold, the current grind higher looks likely to continue, with a break back below the recent low of $1861 required to create a fresh bearish outlook. Source: ProRealTime Brent crude rebound takes price back up towards descending trendline Brent crude has spent much of the week regaining lost ground following a bearish turn that saw $10 sliced off the price in the space of a fortnight. The wider trend does remain bearish, with the descending trendline and Fibonacci resistance levels bringing the potential for another bearish turn before long. With price currently at the 61.8% retracement ($85.20), there is a good chance we see the bears come into play before long. Watch for a move through 80 on the stochastic to signal a bearish turn from a momentum perspective. To the upside, we would need to see a push up through the $89.01 resistance level to bring confidence of a more protracted bullish rebound. Source: ProRealTime Natural gas turns lower from Fibonacci resistance Natural gas has turned lower once again after a rebound in the early part of the week. This is a market that has been a consistent performer for the bears, with the relatively balmy European winter ensuring that storage levels remain well topped up throughout the drawdown period of the year. While we did see a push into the 76.4% Fibonacci level on Tuesday, price has been reversing lower in line with the wider bearish trend. With a very consistent bearish trend still in play, we would need to see a push up through the $2.789 swing-high to bring about a more positive outlook. Until then, further downside looks likely. Source: ProRealTime
    • ASX 200 afternoon report: 9th of February 2023 Find out all the latest information on the ASX 200 market. Updated as of 9th February, 3.00 pm AEDT.   Source: Bloomberg   Indices ASX Coal Dividend S&P/ASX 200 Interest rate  Tony Sycamore | Market Analyst, Australia | Publication date: Thursday 09 February 2023  The ASX 200 trades 43 points (-0.57%) lower at 7487 at 3.00 pm Sydney time. The ASX 200 has slumped today, taking its lead from a fall on Wall Street, as Fed Speakers hit the wires to beat the hawkish drums and remind markets that higher rates will be required for longer to bring down inflation. IT sector The tech sector experienced losses today, led by Google. Google fell 7.44% after its new AI intelligence chatbot Bard underwhelmed Sezzle fell 8.53% ZIP fell 5.91% Megaport fell 5.65% as it elected not to pay a dividend Novonix fell 4.72% to $1.72. AGL fell 11% after reporting a loss of $ 1.1 billion for the first half of the year. It also slashed guidance and its interim dividend to 8c per share. Elsewhere, Real Estate heavyweight Mirvac slumped 5% to $2.28 as wet weather, interest rate hikes, and labour shortages limited its first-half earnings. Financial sector The pressure of this week’s RBA rate hike and intensification in the fight for new deposits has hada negative effect on all banks apart from ANZ. ANZ has added 0.23% to $23.85 after its upbeat trading update NAB fell 0.8% to $31.80 Westpac fell 0.36% to $23.82 CBA fell 0.4% to $109.89. Mining sector The 40% fall in the price of coal out of Newcastle since the start of the year continues to weigh on the coal miners. Whitehaven coal fell 5.62% to $8.06 New Hope fell 4.9% to $5.81 Yancoal fell 4.62% to $5.87 Coronado Coal fell 4.65% Fortescue Metals added 0.89% to $22.68 BHP added 0.02% to $48.13 Rio Tinto fell 0.4% to $123.65. Technical analysis We view the ASX 200 as being stretched to the upside and overbought after five straight weeks of gains. For the Elliott Wave followers, there is a five-wave advance from the October 6411 low to this week’s 7567.7 high. All of which warn that a pullback is looming. A break of support at 7460/50 (coming from recent lows) would indicate that a medium-term high is in place and that a corrective pullback is underway. We continue to favour trimming longs ahead of the bull market 7632 high and looking to either buy a sustained break of the 7632 high or a pullback into the 7200/7000 support area. ASX 200 daily chart     Source: TradingView. The figures stated are as of February 9th, 2023. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.
×
×
  • Create New...