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Question
Guest Geremy
Hi Guys,
First post here, sorry if this is all just incorrect, but before I lodge a proper support ticket I just wanted to see if anyone from IG or the community could explain this to me.
I went long on the Volatility index 2 days ago, as it was at a low price and I was anticipating losses on the S&P 500.
When I was writing my trading plan I could not find anywhere on the IG website where is categorically stated that this Index was the VIX. So I rang IG to confirm and they emailed me in writing that it was "The VIX".
When I bought the price withing the next day I was down about $1000 USD which did not match my calculations.
I then noticed the difference in price between the IG product and other charts and index price data.
I rang and chatted to IG enquiring why the prices were different.
After discussing with someone on the phone we came to the conclusion it was because the data from IG is "Live" and what I was looking at was delayed by 15min. Ok awesome, problem solved. Use IG data.
Then yesterday I went Long again for similar money at an even lower price.
I have watched in anticipation as the S&P has fallen over 1% today and was expecting my Position to be just over 10k.
When it only breached 5k at 15 points I was very confused.
What I have now discovered is that the pricing mismatch on the live quote, while different by 15 minutes from the index price data available on the internet, was grossly different from the underlying index price.
I have gone back and done a comparison of the prices when I purchased and the prices as they are currently.
IG's price is currently UNDER-QUOTING the index price by approx 1%. Not fantastic in my opinion, but explainable by different data sources and aggregation points.
IG's price when I bought the stocks, were OVER-QUOTING by 14.8% and 19.8% respectively.
I have attached screenshots of all the pricing and my calculations. I'm simply not sure how I have missed out on my first large windfall with IG.
Sorry the calculations are a screenshot, I could not upload an Excel File.
Thanks
Geremy
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