Jump to content

New: Knock-outs


Recommended Posts

Hi, 

It's great to see this new way to trade (bet on) the markets with reduced margin (akin to pre-ESMA leverage restrictions). I'm sure many will find this a useful feature, however, as an intraday trader, my stops are significantly closer to my entry price than the knock-out levels available. Take EUR/USD for example; a typical stop for me would be 10-15 points, whereas the closest knock-out level available is over 120 points away. So I wouldn't be able to take advantage of them without taking on unacceptable risk with a considerably negative risk-reward ratio.

Are there any plans for closer knock-out levels suitable for intraday positions? Ideally in increments of 1 instead of 10, or even user-defined levels. 

  • Like 1
  • Great! 2
Link to post
  • Replies 131
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

Popular Posts

Hi,  It's great to see this new way to trade (bet on) the markets with reduced margin (akin to pre-ESMA leverage restrictions). I'm sure many will find this a useful feature, however, as an intra

It’s certainly a bit of getting used to on these knock outs! It’s a new product and altho I know and can get my head around regular options this new knock out does take a little getting used to!! Keep

Great question @Trader126 I wanted to add that we are looking at introducing a non guaranteed stop option over and above the KO (kick out which is guaranteed) level. In other words, this means yo

Posted Images

FTSE 100 Bull KO 

market moves a point you make or lose a point. So basically what we had before...right? 

Looks like knockout level is basically a guaranteed stop. On that’s FTSE one above min stop level is 80 points away, which on a 7700 market means you getting about 103:1 if I’ve done the math correctly. Which is a margin percentage of 0.97 (basically 100:1 or 1% deposit margin). 

You HAVE to have a guaranteed stop tho which you have to pay for, but given the leverage pay out it seems pretty darn good in this post ESMA world.

  • Thanks 1
Link to post

So the expiry on the Dax is 10 days (look at top left of chart next to chart name). And being a fixed stop the deal ticket will be rejected if you choose too large a bet size for your account size (margin already set).

The info popup after place a trade requires speed reading though if you click on it it will stay up.

Link to post

Yeah, was just looking at your pic, what did you click to bring that up? a year seems somewhat excessive. It also says the min size is 1 but it is 0.5 though that is on demo. 

Forgot to mention the with the Dow at £0.5 min bet size the KO was 270 points. 

 

Edited by Caseynotes
Link to post

The expiry seems to be just under 12 months for all of them (I've not checked them all). Overnight funding applies though, so you wouldn't want to hold one for that long. 

Edited by Trader126
  • Like 1
Link to post

wonder if the 'expiry'  (which should probably be put in these " as it's more "expiry") is just a requirement for this to be an option? or a spread bet I don't know. Like the DFB's which have expiry dates of 2029...

Link to post

Hi all - I'm glad you're finding your way around the new product. This went live yesterday on spread betting accounts yesterday around 3pm UK time. This is currently only available to UK spread bet clients. You can find more info reguarding these products here > https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/market-details/what-are-knock-outs 

On 8/9/2018 at 1:08 PM, Guest Joe said:

Yes -  there is an expiry date, and this is not indicated on the deal ticket prior to placing the trade (at least i could'nt see it anywhere).

As shown above expiry dates are shown on the deal ticket here. These are presented in a MONTH-YEAR format so Aug-19 will be 1st August 2019 (not August 19th). You can find out more information via the 'info' section (as discussed above) along with settlement criteria if you hold until the point of expiry as quoted in the deal ticket. 

2018-08-09 14_12_31-IG Trading Platform _ Spread Betting.png

Any comments, questions, or feedback notes warmly received. 

Best
James

  • Like 1
Link to post
2 hours ago, Trader126 said:

.... as an intraday trader, my stops are significantly closer to my entry price than the knock-out levels available. Take EUR/USD for example; a typical stop for me would be 10-15 points, whereas the closest knock-out level available is over 120 points away. So I wouldn't be able to take advantage of them without taking on unacceptable risk with a considerably negative risk-reward ratio.

Are there any plans for closer knock-out levels suitable for intraday positions? Ideally in increments of 1 instead of 10, or even user-defined levels. 

3 minutes ago, Trader126 said:

Are there any plans for closer knock-out levels with smaller increments, suitable for intraday positions? 

Great question @Trader126

I wanted to add that we are looking at introducing a non guaranteed stop option over and above the KO (kick out which is guaranteed) level. In other words, this means you could have a position with a guaranteed KO, and also the option to add a regular stop before the KO. If the market moves against you the regular stop will look to close the position at the best available price, whilst you also have the assurance the KO level will guarantee your downside risk.

There is no set delivery date but we will keep the Community updated. 

  • Thanks 1
  • Great! 1
Link to post

@JamesIG, that is good to know, thank you. That would enable far greater control of risk and would be ideal for intraday trading (provided there are no minimum stop distances beyond what you already have on spread bets). I look forward to hearing any updates on a delivery date in the future. ?

  • Great! 1
Link to post
9 minutes ago, elle said:

done a couple of "demo" trades   - went ok after I worked out how to close them !

Just like normal no? Or have you not used this new platform yet? Should just go to positions > close and then you get a green confirm. Did it below where I had two positions originally and closed one to test in demo.

 2116364987_closedemo.thumb.png.80762a3d8c8675cfd504f0643c7facaa.png

 

  • Like 1
Link to post

Interesting question Ajg, presumably there is the tax benefits of an options type instrument on a spread betting platform instead of the CFD platform. And having an adjustable stop feature (proposed) on an options intrument. A professional account wouldn't have the negative equity protection.

Link to post

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • General Statistics

    • Total Topics
      14,987
    • Total Posts
      72,769
    • Total Members
      61,049
    • Most Online
      5,137
      14/01/21 09:51

    Newest Member
    Patelmo786
    Joined 21/04/21 06:03
  • Posts

    • Econ Cal Time Cur. Imp. Event Actual Forecast Previous   Wednesday, April 21, 2021 02:30   AUD   Retail Sales (MoM)   1.4% 1.0% -0.8%   07:00   GBP   CPI (MoM) (Mar)   0.3% 0.1%   07:00   GBP   CPI (YoY) (Mar)   0.8% 0.4%   07:00   GBP   PPI Input (MoM) (Mar)   0.6% 0.6%   09:00   ZAR   Core CPI (MoM) (Mar)   0.7% 0.6%   09:00   ZAR   CPI (MoM) (Mar)   0.7% 0.7%   09:05   GBP   MPC Member Ramsden Speaks           10:40   EUR   German 10-Year Bund Auction     -0.360%   11:30   GBP   BoE Gov Bailey Speaks           13:30   CAD   Core CPI (YoY) (Mar)     1.2%   13:30   CAD   Core CPI (MoM) (Mar)     0.3%   13:30   CAD   CPI (MoM) (Mar)   0.6% 0.5%   15:00   CAD   BoC Monetary Policy Report           15:00   CAD   BoC Rate Statement           15:00   CAD   BoC Interest Rate Decision   0.25% 0.25%   15:30   USD   Crude Oil Inventories   -2.975M -5.889M   15:30   USD   Cushing Crude Oil Inventories     0.346M   16:00   CAD   BOC Press Conference        
×
×
  • Create New...