Spreadbetting stop loss too wide for me?

[Hampshire321]

Hi,

I have opened a demo spreadbet account with IG with a balance of £2000 to mirror how much i would actually have in a future live account

I then wanted to risk 2% of my equity in a trade, so i  selected a bet of £10 per point (the minimum allowed) with a stop loss of 4 points away (2% of balance  = £40) . I know this is a very short stop in a volatile market but it is the only way i can stick to my risk per trade ratio.

However i then was greeted with an error saying the stop must be at least 8 points from the current market price, which would mean a 4% risk of my balance (£80)

Is there a reason for this please or am I doing something wrong?

Thanks

HL

[Hampshire321]

Apologies, title should read too wide, not wise

[OfentseIG]

2 hours ago, Hampshire321 said:

Hi,

I have opened a demo spreadbet account with IG with a balance of £2000 to mirror how much i would actually have in a future live account

I then wanted to risk 2% of my equity in a trade, so i  selected a bet of £10 per point (the minimum allowed) with a stop loss of 4 points away (2% of balance  = £40) . I know this is a very short stop in a volatile market but it is the only way i can stick to my risk per trade ratio.

However i then was greeted with an error saying the stop must be at least 8 points from the current market price, which would mean a 4% risk of my balance (£80)

Is there a reason for this please or am I doing something wrong?

Thanks

HL

Hi @Hampshire321

Thanks for reaching out. All markets will have a set minimum distance and this will be different for each product. These distances can be shown in points or percentage of the price. 

During periods of increased or expected market volatility, we may increase the minimum stop distance as compared to the initial stop distance. In such situations you will have to adhere to the new stop distance when amending your stop levels. 

Thanks, OfentseIG