Jump to content

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

Share this post


Link to post
Share on other sites

"Knock-outs"  ???    where , please tell me, are they ?

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites
Guest Joe

What happens with "knock outs" if you lose 50% of your margin, do you close the position??

Share this post


Link to post
Share on other sites

they look interesting - well done IG - keep this stuff coming

  • Like 1

Share this post


Link to post
Share on other sites
Guest Joe

Also - why is the knock-out expiry date not shown on deal ticket prior to placing the trade?

Share this post


Link to post
Share on other sites

is there an expiry date, or is it just the "knockout" level ?

Share this post


Link to post
Share on other sites
Guest Joe

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).

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

that dax expiry date is Aug   2019   from what I can see

Share this post


Link to post
Share on other sites
Posted (edited)

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

Share this post


Link to post
Share on other sites

excuse the playschool drawing  - arrows show where to click

Capture ok.PNG

  • Thanks 1

Share this post


Link to post
Share on other sites
Posted (edited)

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

Share this post


Link to post
Share on other sites

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...

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites

Interesting stats from the demo re margin requirement, account size and the much too big bet size (£50/point).

ko2.thumb.PNG.1d74c609340664f62f849442a2c89159.PNG

 

Share this post


Link to post
Share on other sites

Hi @JamesIG,

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

Thanks.

  • Like 1

Share this post


Link to post
Share on other sites
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

Share this post


Link to post
Share on other sites

@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

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites
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

Share this post


Link to post
Share on other sites

Surprised this hasn’t got more tranction. This is literally the solution to the esma stuff and hardly anyone is on it...? 

Odd.

  • Thanks 1

Share this post


Link to post
Share on other sites

I think the movable 2nd stop proposed feature will make a big difference to the appeal factor. My demo £1,500 profit has turned, overnight, into a £400 loss.

  • Thanks 1

Share this post


Link to post
Share on other sites
Guest Ajg

I guess the new knockouts are a way of helping retail traders... where the margins have gotten way high.

is there anything in them for the professional accounts ?

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
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
      5,109
    • Total Posts
      20,463
    • Total Members
      21,802

    Newest Member
    shaun_gribben
    Joined 08/21/2018 02:55 PM
  • Handpicked content from IG Community

    • London's house prices - EMEA brief 21 Aug
      Asian stocks generally up on hopes trade tensions may ease, with opes of a China - US trade resolution pushing up copper, often seen as a barometer for the economic outlook, dragging behind it miners such as BHP Billiton and Glencore. Venezuela have debased their currency taking off five zeros, along with increase minimum wage by 3000% in and effort to prop up their economy. Yesterday the world trade organisation confirmed that Turkey had lodged a trade dispute against the US. Gold gains as Trump's remarks weigh on the US dollar, whilst oil edges up on tighter US outlook and Iran sanctions. Finally, see what's going on with London house prices in the IGTV video featured video below.
      • 0 replies
    • Oil prices slip - EMEA brief 20 Aug
      Iran has stressed to OPEC over the weekend that no other member country should take up the slack for reduced oil exports in the face of Trump imposed US sanctions. Oil prices slip on concerns over slowing economic growth. Asia shares inch up with yuan ahead of Sino - US talks, whilst UK ministers are set to release their first ‘no deal’ Brexit documents on Thursday in an effort to prepare for a “worst possible” outcome. Persimmon results are expected tomorrow, with many in the sector looking to the release as a barometer for the wider housing sector and how a rising inflation rate will affect the market.
      • 0 replies
    • Over Exposed Traders, Global Taper Tantrum, Jackson Hole - DFX key themes
      There are a few undisputable and universal forces when it comes to the financial markets. One of those all-powerful winds is the concept of risk trends which is referred to by many names such as ‘risk on, risk off’ or referenced unknowingly when we blindly attribute market wide movement to animal spirits through technical cues, smart versus dumb money, panic to greed.

      Another of these truisms is the allocation of capital. While total wealth does grow and contract, it is apportioned to some market whether that is emerging market equities to US Treasuries to home mattresses. In a global market, there is also distribution to different regions according to what country or collective economy presents the best opportunities.

      And, from this parsing of investment preference; we can learn a lot about the market; but one of the most elemental solutions is the global market’s general bearing for sentiment (the risk trends referenced before). There are no easy, definitive measures for allocations across such a wide universe of markets, but there are various measures for specific areas and key ports for which to apply measure such that we come to a good understanding of the markets’ health.
        • Like
      • 0 replies
×