Jump to content

A few questions regarding IG's trading platform


Guest Wes

Recommended Posts

Hi,

I'm new to trading and there are a few things I'm having trouble understanding. Firstly, why is there a gap between the actual price of an asset and where my deal takes place. It's always on the minus side of the actual price. I just started a trade and was -$150 the instant after i click the mouse. This happens every time with varying amounts in the red and I don't understand why. Secondly, why am I forced to make a minimum stop loss? I always set a stop loss but sometimes I want to make it smaller and it won't allow me. Thirdly, If I set my stop loss to say  -$300, why do I need a minimum of sometimes upward of $40,000 in my account to cover margin when I could only possibly lose $300? Finally, and most infuriatingly, Why do my stop losses and limits trigger early? 

As I said, I'm new to trading so some of these questions might be very simple to answer but it would mean the world to me if someone could!

Kindest regards,

Wes

Link to comment

Hey, 

Thanks for your post. 

10 hours ago, Guest Wes said:

why is there a gap between the actual price of an asset and where my deal takes place.

With this one do you mind clarifying if you mean where the market is in the underlying and the price on our platform? If it is please can you let me know the market you're referring to and the contract your trading (e.g. future contract if so which month or a DFB/ Cash position). If I 've misunderstood the question please let me know. 

If you open a position you will instantly be at a loss because of the spread but the amount depends on your bet size. For example if you're trading 15 contracts on the CFD main FTSE contract which has a contract size of £10 and the spread is 0.8 then your position will instantly be opened up with a  (15 x £10 x 0.8 point spread)  £120 negative.

Any one point movement in your favour, using the example above, means you will gain 15 x £10 = £150 

10 hours ago, Guest Wes said:

Secondly, why am I forced to make a minimum stop loss? I always set a stop loss but sometimes I want to make it smaller and it won't allow me

Some accounts require you to have guaranteed stops on all positions. You will have to reach out to us via email/ live chat/ call if you want to discuss this as they can be account specific. Sometimes we have minimum stop losses and they're decided by our risk and exposure team. 

10 hours ago, Guest Wes said:

Thirdly, If I set my stop loss to say  -$300, why do I need a minimum of sometimes upward of $40,000 in my account to cover margin when I could only possibly lose $300?

We used to let clients only put down the maximum loss (for guaranteed stop losses only) However, due to regulatory changes with guaranteed stop positions, traders must have enough on their account to cover the exposure of that position not just the maximum loss. We understand this is frustrating but it's a rule we have to follow. With normal stops having the maximum loss as the margin was never the case due to normal stops potentially being subject to slippage in the market. 

10 hours ago, Guest Wes said:

Why do my stop losses and limits trigger early? 

The stop losses and limits shouldn't trigger early. If they did we as a company would have to reopen your position because that would be an error on our side. Please make sure when you're watching your positions that you're checking the correct price type. 

When a long position is closing you have to check the Bid price. 

When a short position is closing you have to check the Ask price. 

If you have the price type set to Mid you will not be able to see the correct pricing. 

 

 

 

If you can give me an example of a trade you've had recently I will be happy to break that down :)

All the best 

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
      22,988
    • Total Posts
      95,311
    • Total Members
      43,596
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Mamzy
    Joined 23/09/23 05:19
  • Posts

    • Just now, according to Glassnode data, the number of addresses holding more than 100 BTC has reached a four-month low, currently standing at 15,955.
    • Bitcoin and other major crypto experienced a dip in value on Thursday, erasing gains made earlier in the week. The decline came after the Federal Reserve signaled that interest rates would remain high for an extended period, with Bitcoin retreating 2.3% to $26.5K. Despite the bearish pressure,  the founder and CEO of Bitcoin joint mining company Xive,  Didar stated that the stagnant rate increase is positive for Bitcoin. He suggested that this could reduce the attractiveness of mainstream financial assets to institutional investors in the long term, potentially driving a new rally in Bitcoin's price. Major altcoins and exchange tokens also struggled on Thursday, with ETH changing hands at $1,585, down about 2.6% from Wednesday. Other altcoins such as BNB and BGB also experienced losses. Despite these challenges, some analysts believe that Bitcoin is likely to remain within its recent range between $25,000 and $30,000. Riyad from digital asset data platform Kaiko, noted that the market needs a catalyst to mount any serious rally.  What are your thoughts? 
    • Traditional banking systems served as the gatekeepers of financial services for long, dictating how people access loans, save, and invest in opportunities. Typically controlled by a centralized system with a single authority such as a bank or government in total charge, this centralization is limited by high fees, restricted accessibility and slow transaction speed. Dentralized finance, DeFi, got introduced as a blockchain-based financial system that removes intermediaries or central authorities, and utilizes smart contracts instead. By eliminating intermediaries, DeFi delivers core benefits like improved accessibility into the financial system for everyone having internet connection regardless of their location. DeFi is also valued for its transparency. While traditional banking system often deny customers audits on how their assets are being managed, DeFi, through the help of blockchain allows anyone access to tracking and auditing transactions, thereby raising trust. Furthermore, DeFi also offers various financial services and products like DEX, lending and borrowing, stablecoins etc, all known to proffer varied innovative solutions, while operating 24/7 in contrast to traditional finance. DeFi isn’t flawless as issues like insecurity, lack of consumer protection etc are still prevalent; however, the growth of DeFi has been impressive; since its introduction, the total value locked in DeFi protocols has grown significantly indicating that the demand for DeFi services is fast growing. DeFi seems to be redefining financial industry by offering an alternative to traditional banking systems. With the increasing adoption, can we expect to see an overhaul in the way we access financial services?        
×
×
  • Create New...
us