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10/06/21 10:53
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Hi @eddyed& @Kowal There are many reasons that can result in a stock going on closings only. It also depends on the type of account you trade in. On leverage accounts, this can be due to the company's market cap changing or other restrictions enforcing IG to offer this on share dealing only. For non-leverage accounts, it can be due to a corporate actions event, market going OTC, etc. For THG.L, this market is now only offered on share dealing accounts as we have reached our limit on how much we can hold in the market for leverage accounts. It is a business decision and this is reviewed regularly. Therefore you will be able to trade the stocks on a later stage. The best option would be to contact our helpdesk or using this platform to find the reason for the 'Closings only' status. All the best, OfentseIG -
Charting the Markets: 3 February S&P 500, Nasdaq 100 and Dow rally ahead of US non-farm payrolls. EUR/USD, GBP/USD and USD/JPY head lower after central bank volatility. And gold, oil and coffee prices drop back. Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 03 February 2023 This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to. -
Gold, oil and coffee prices drop back Commodity prices received a knock as the dollar strengthened, pushing gold and coffee back from multi-month highs while oil’s decline continued. Source: Bloomberg Chris Beauchamp | Chief Market Analyst, London | Publication date: Friday 03 February 2023 Gold drops back from $1950 Gold’s exuberance was checked on Thursday, with the price reversing from the nine-month high. Perhaps this now points towards a move lower in the short-term that may result in a higher low. For this the price will need to breach $1900, which provided support on Tuesday and earlier in January. A first destination for this would be the $1870 area, followed up by the 50-day simple moving average (SMA). Source: ProRealTime WTI slump pushes lower The price continued to decline on Thursday, falling to a three-week low. It continues to look like a lower high was made in the second half of January around $82 and the 100-day SMA. A continued decline, backed up by a falling daily MACD, suggests a move back to the January low at $73.40 and then on to the December low just above $70 is now possible. A reversal back above $79 would be needed to suggest another attempt to clear the 100-day SMA and then the $82 level is developing. Source: ProRealTime Coffee weakens after big run higher Coffee’s huge rally off the January lows suffered a severe check this week, though the price is holding above the 200-day SMA for now. This may be the lower high that sellers have been looking for, if they think that the post-December 2021 downtrend is still intact, a view supported by the declining 200-day SMA. A similar bounce in July and August then reversed course, which might provide a hope of a new decline. Additional gains would target 2160, and then to 2300+, the August 2022 peak. Source: ProRealTime
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Question
endodontist
I want to ensure that I totally understand the CFD / Spread bet way of options rather than the traditional way.
What I want to know is that if you are trading NDX daily and you pay for a call option strike price of 16270 which commands a premium of 137.
If NDX gets to 16420, then you can exercise you right, so the profit would be 16420-16270 = 150. If you have 1 contract this would be 100 "shares" = 15000, and then subtract your premium =14863 USD profit.
Why does this not show up on the account, I tried this in a demo and the figures are much less.
Questions
1) Options pricing is more complex than the example I have given, there are the Greeks which come into play. Why does IG not show how things are calculated
2) Only after you have bought / sold the option, does the option chart come up. Why cant you see this before? Again why is there no calculation to show you how the figures are derived
3) Taking the other side of the bet, selling PUTS that are far out of the money, why does it show as a negative as soon as you sell it. If it OTM you collect the premium and hope it expires worthless. eg on the demo account I sold a 16242 PUT daily NDX exp today. The current price is 16400. Well out of the money, why does it show as a negative balance.
Also again the chart has values on the Y axis that range from 0 to 30. Why am I not seeing this on the options chain ladder? How are these figures derived and calculated.
Thank you
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