Jump to content

Untradeable forwards? VHYG


Recommended Posts

I am relatively new to spread betting, but finding it interesting to get to grips with. The strategy I'm using involves going long on selected index ETFs, on a long-term basis.  In order to avoid high overnight fees I'm using the longest-dated forward positions I can buy (Sept 24 at the moment).  I tried to purchase a position on VHYG (Vanguard FTSE All-World High Dividend Yield ETF) and got a pop-up saying I couldn't open a new position on that ETF, only close old ones. And sure enough if you dig into the Info section there's a tag "Non-leveraged only". My two questions are:

1. Why is this 'non-leveraged only'? It doesn't seem to be applied to many ETFs and there seems to be nothing obvious which links them. As if to make me more confused VHYL (the income units of the same ETF) can apparently be bought on leverage.

2. Why are forwards even listed on IG for an ETF which can't be leveraged? (Perhaps the answer is that VHYG was bettable until very recently and now needs to be listed to allow people to close positions?)

Any grizzled veterans able to help me out?

Matt

Link to comment

Dear @matt_sb_101,

Thank you for your post and welcome to the IG community! We're thrilled to have you here:).

1. Just a heads up, a stock or ETF can be offered on a leveraged account but may be removed if there are changes in the requirements or broker margin. This is because the costs would need to be transferred to the client if the broker margin is high. Another reason for removal could be if a stock no longer meets our minimum market cap requirements.

2. Absolutely! As mentioned earlier, a stock or ETF can be offered on a leveraged account but may be removed if there are changes in the requirements or broker margin. If that happens, the stock would still be allowed to close existing positions, but new positions would not be opened.

Thanks,

KoketsoIG

Please rate us on Trustpilot: IG Trustpilot 

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
  • image.png

  • Posts

    • With the CryptoSpace evolving everydayy, a plethora of ways also trump up for users to earn and have fun alongside. Some of these events are my favourites. I have participated in a couple of them and the potential to earn therefrom is immense.  Just recently, I came across an event on Bitget for its users to earn passively as well as an opportunity to spin the wheel to win an all expense tour to Santorini island. The criteria for participating in this is relatively simple, you just need to make a net deposit of over 100 USDT and maintain the amount for a day. Depositing greater sums like $500 USDT, 1000 USDT and 1 BTC can further your chances of winning. The more tasks completed, the more spins a participant may have. The event is exclusively restricted to users from the; United Kingdom, Canada, Australia/DACH, French, Italian, Netherlands, Sweden and Poland region. The total prize pool is $50,000 based on FCFS serve basis. This sounds too good to look away from.
    • Still the silence is deafening in here. When will this happen?  it have moved most my Trading Capital to another broker who does support Trading veiw Does the deal with Tastytrade have something to do with this lack of progress?  
    • Well to me I feel that the  crypto market values transparency and reliable services. And Bitget has embraced this approach, attracting a large following,gaining up to 1.4million twitter followers,. Recent data shows significant growth in trading volume, solidifying its position in the market.  The exchanges  focus on user protection and satisfaction has fostered a loyal community. As the platform continues to evolve, its value may continue to grow. What are your thoughts on the importance of value in crypto, and what do you see as Bitget's future potential?
×
×
  • Create New...
us