A few questions regarding IG's trading platform

[Guest Wes]

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

[CharlotteIG]

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