I dont understand this...help please

[Guest b9boy]

New to SB and trying to short a share and I get this messag:

"The maximum controlled risk stop size at one level is GBP50.00. The minimum controlled risk spacing is 1 points."

can anyone help me understand what this is telling me please?

thanks in advance

[JamesIG]

Hey and welcome to IG and the Community. 

 

This message is basically telling you that you can't have an unlimited size with a guaranteed stop all at one level. For example if you were buying £100/pt when a particular market was 35 (for example), and you wanted to use a guaranteed stop at 30, you would have to have £50 at 30 and the other £50 at 29. This would either need to be two separate deals, or if you wanted to execute it all at once you'd need to give us a call and one of our dealers would be able to execute this over the phone.

[Guest b9boy]

Thanks James for the explanation, thats helpful.

[Guest Snakeeyes]

I am also a newbie on a limited risk account and puzzled by this and what it means.

 

I am trying to short a $10 share and it tells me the max controlled risk stop is $600.

If I wish to short $8000 worth of shares  does this mean I need to enter 13 orders with 13 risk stops and lots of minimum commission?

 

The $600 number seems really low.

 

any thoughts?

 

 

 

 

 

 

 

[JamesIG]

---

wrote:

I am also a newbie on a limited risk account and puzzled by this and what it means.

 

I am trying to short a $10 share and it tells me the max controlled risk stop is $600. If I wish to short $8000 worth of shares  does this mean I need to enter 13 orders with 13 risk stops and lots of minimum commission? The $600 number seems really low.

 

any thoughts?

---

Hey  - what stock are you referring to specifically please and I can try and assist. 

[Guest Snakeeyes]

IOOF Holdings (OML)

[Guest Snakeeyes]

oops I mean IOOF holdings (IFL)

[JamesIG]

Hi  - If you are referring to IOOF Holding Ltd which is currently priced at 10.36 you're going to want to buy 781 shares. This size obviously changes as the price changes, but this should give you a notional value of A$8000. 

 

With a guaranteed stop, because they're not available in the underlying market and there isn't infinite liquidity at any one price point, we can't offer an unlimited size at any one stop. You can, on this stock, have upto 600 shares at any one stop level, with the next tranche 10 points lower. Therefore you can have 600 shares with a stop distance of 61, and the remaining 181 at a stop distance of 71. You would need to make 2 trades, or if you give us a call we can do this manually with one deal. 

 

[Guest Richie]

Hello,

Where can I find out what the The maximum controlled risk stop size at one level for an ETF? 

I have tried to place a small trade through the API with a guaranteed stop at 10% but it gets rejected and I do not know at what level to place the guaranteed stop.

Thanks in advance.