[Please explain why my limit didn't trigger]

Ah, of course. Thank you.

Russ

[Please explain why my limit didn't trigger]

Hi,

See attached screenshot. I opened a BUY position on the GBP/EUR market, £0.5/pt. The stop was set to the minimum of 8pts away. The limit was set to 1pt away.

Opening: 11625.2

Limit: 11626.2

The price rose to almost 11627 but my limit wasn't activated and the position did not close.

The spread was stable at 3 for the duration of the open position.

Thanks,

Russ

[Why is the margin the same for trades with normal and guaranteed stops?]

ok, thanks for the detailed explanation.

Russ

 

[Why is the margin the same for trades with normal and guaranteed stops?]

ok, understood. Thank you.

I guess the natural next question is... why? What's the rationale? The trade has a guaranteed stop. As I understand it, that means I can't owe IG more than that. So why am I required to have a margin that is many times more than I could ever lose? The margin will never be used. Am I missing something?

Russ

[Why is the margin the same for trades with normal and guaranteed stops?]

Hi,

For example, a spread bet on the GBP/USD market, £1/point, with a stop at -£50, the margin is about £300 regardless of whether the stop is normal or guaranteed. When the stop is guaranteed, I don't understand why the margin needs to be so much higher than the potential loss. Could someone explain please?

Thanks,

Russ