stop loss on market makers stocks

[Ricky66]

Hi I have an account with IG and Iweb. Currently I use iweb to trade executing on average many  trades a month. The reason I stopped using IG was that it did not offer stop losses on these stocks which is not only bizarre but ridiculous. The primary reason I have made and continue to make good profits on trades is that I risk manage aggressively. A fundamental reason of that is to be able to get out of the market automatically if a price drops below a predetermined amount. All good traders use effective risk management to manage their risk and other platforms facilitate the use of stop losses on trades.

So my question is how do you expect anyone to use IG if you do not offer it on market makers stocks which in many cases are Aim companies. I was told that if I phoned through I could put it on a stock. Is that true?

I am interested in using it as they charge for £3 a stock for 3+ but it would only be viable if you can get out of the market ( even allowing for slippage) automatically

[CharlotteIG]

1 hour ago, Ricky66 said:

Hi I have an account with IG and Iweb. Currently I use iweb to trade executing on average many  trades a month. The reason I stopped using IG was that it did not offer stop losses on these stocks which is not only bizarre but ridiculous. The primary reason I have made and continue to make good profits on trades is that I risk manage aggressively. A fundamental reason of that is to be able to get out of the market automatically if a price drops below a predetermined amount. All good traders use effective risk management to manage their risk and other platforms facilitate the use of stop losses on trades.

So my question is how do you expect anyone to use IG if you do not offer it on market makers stocks which in many cases are Aim companies. I was told that if I phoned through I could put it on a stock. Is that true?

I am interested in using it as they charge for £3 a stock for 3+ but it would only be viable if you can get out of the market ( even allowing for slippage) automatically

Hey @Ricky66, thanks for your post. 

In the underlying market you cannot actually place a stop order for market maker stocks. I can't comment on how iWeb is offering this but with IG you can set an alert price then get a quote at the time. 

We do not offer stops/ limits for market maker stocks though. I understand it's a little inconvenient when you want to leave your position rather than having to login to close it. Apologies. 

I will pass the feedback on to developers and our Share desk about tailoring our platform to make this possible. 

 

[Ricky66]

Charlotte, thank you for your reply. Can I just clarify that you are saying that stops do not exist on market maker stocks?

I would then immagine if that is the case IWEB and XO as well as others must have a system whereby they log your stop on their system and when it is flagged up ie the price hits the stop or below then their system automatically tries to get a price and execute. I can quote an example of one trade that was a market makers trade that I had a stop loss on: This trade hit the stop. Iweb tried to get a price 3 times and could not ( due to volatility) so they phoned through to the MM and executed the trade.

It is definitely possible to do. I can only quote from my own trades. I trade approximately 100 trades a month and have never in 10 years seen my portfolio be in debt. ie I have never had less money than when I originally started. The main reason for that is risk management and stop losses for me play a major part.

If there was a way of doing what Iweb or others do I would be interested in bringing my business to you

Edited February 17, 2020 by Ricky66

[DenisP]

Hi Charlotte, 

Completely on board with Ricky66. I was looking to join a new platform and opened a demo CFD account to get a sense of your charting tools, indicators, etc before committing to IG. I am not interested in CFD's or Spread betting, but rather Share Dealing, ISA, SIPP accounts.  I was very impressed by the layout and the tools in place, but I could not believe that you did not have stop losses in place at all on the Share dealing account. I would go as far as saying that the aim for IG should be not only to introduce the basic stop loss facility but the more advance too, the trailing stop loss.

The alert price you suggest I am afraid is no where close to offer what a stop loss offers in terms of risk management on the account.

IG might be one of the top in terms of tools and charting, but offering a trading account without stop losses in place is purely suicidal for any trader and a complete lack of risk management offering tools from IG. 

Until the developers of the Share desk do not introduce this basic risk management feature I am afraid I won't be joining IG either.

Drop us a line when you have some news.

Many thanks,

Denis

 

[keyw1z]

Hi there,

I am glad this topic has been raised already.

Can one of IG administrators advise if before buying a stock there is a way for your platform user to establish if a particular stock is a market maker one or not (perhaps in the ticket)? This way at least we can prepare to manage the stock differently before buying to one which offers a stop loss. Can this functionality be made available?

Thanks