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Stop Guaranteed Pts away issue


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  • CKN changed the title to Stop Guaranteed Pts away issue
6 hours ago, CKN said:

Stop Guaranteed Pty away issue ... How to solve this problem ?

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Due to the volatility of the markets our guaranteed stop distance has increased. Our risk and hedging desk determine what is appropriate for the stop distance. 

When placing a guaranteed stop, if it is hit and the markets slip IG take on that additional loss. We cannot close clients out at five and take on the loss at these volatile times. 

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Guest Gambling

Dont' forget when you trade with a company like IG you are betting against the company as well as the market. If you work out the probabilities then the company equates to something like the "00" on the roulette table or the "casino/house". It ensures they make a profit on their business. You must always consider whether using a company like IG or Betway or any other betting company is the right way to invest in the market.

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24 minutes ago, Guest Gambling said:

Dont' forget when you trade with a company like IG you are betting against the company as well as the market. If you work out the probabilities then the company equates to something like the "00" on the roulette table or the "casino/house". It ensures they make a profit on their business. You must always consider whether using a company like IG or Betway or any other betting company is the right way to invest in the market.

Our business model doesn't work in this way. We hedge the same way as clients which is why when the underlying market is limit up/down we're not pricing and restrict trades because we have to hedge client exposure. 

The reason we have to amend guaranteed stops is because we do hedge, for this example say most clients are long. We would have to hedge long into the market. If a client had a guaranteed stop and there's slippage IG have to take on that loss. Which is why we have to amend the minimum guaranteed stop losses in line with our risk teams assessment of the market. 

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