Jump to content
Sign in to follow this  

When is a gaurenteed stop not a gaurenteed stop

Recommended Posts

I took a spreadbet on Thomas cook shares prior to the weekend they went out of business. I thought I would take a gaurenteed stop to limit my downside in case they did go out of business. What I have now found is that this is not applicable if the company shares are suspended and they go out of business. Has anyone else experienced this ? I would of thought gaurenteed was gaurenteed but I guess not......... I have looked through the IG t&c but cannot find anything that suggests this is in fact true, however IG are adament this is the case as they have not traded and passed my position whilst the market was open.

Share this post


Link to post
Guest PERSON WHO TRADES

It would make sense since IG guarantees stops by taking an options position.  When shares are suspended IG cannot execute its options hedge.  IG does not guarantee the stop by using its own money.

Share this post


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
You are posting 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.

Sign in to follow this  

×
×