orders - minimum distance AUS 200

[PJS]

Is there any reason I could not make an order within 120 points overnight 23/06/2016.  That seems an excessive distance from the actual price of the index  and even now during market open   the minimum is still 30 points.  What's going on anyone know?

[VM]

I had a similar problem and contacted IG support and was told that it was to protect the clients. Despite explaining that limit order has nothing to do with protection. Limit is a simple way to place the order instead of staying glued to the screen to watch the price to come to the preferred level and then place the 'deal' order. It fell on deaf ears and they still are stuck to their view. Below is the response from Gio Pilides (IG Trading Services)

 

"I have spoken to my colleague Simon regarding your complaint, I believe you spoke to him earlier today. As he earlier, our indices desk have set minimum limit distances as we're looking to prevent clients from incurring large amounts of slippage in the volatile market. As Simon mentioned, if you call dealing team, they'd be glad to place an order closer to the market for you over the phone, however this is not possible through the platform"

 

My question is how can slippage problem (even if it is true) be solved by stopping clients from placing the orders with minimum distance of 90 points (sometimes 360 points) from current price for DOW 30? As long as the client gets the price better than the preferred price, how is slippage an issue? By the way other platform does not have such limits implying it is not a regulatory issue and cannot be.

 

Could some members comment on this issue?