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neueneuen last won the day on June 14
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Hello @KoketsoIG, I hope you are well. Could you kindly ask the team to add USD to available currencies to trade FTSE 100, EU Stocks 50, Germany 40, France 40, Australia 200, GBPTRY, EURTRY, CHFTRY and TRYJPY on Spread Betting accounts, please? Some of them already support other currencies apart from their native ones (FTSE 100 supports EUR in addition to native GBP, EU Stocks 50 - GBP to EUR, Germany 40 - AUD and GBP to EUR, France 40 - GBP to EUR, Australia 200 - GBP to AUD; USDTRY supports GBP in addition to native USD, Spot Gold supports USD, AUD, EUR, GBP as does US 500, US Tech 100 and Wall Street 30) so adding USD should be not much different from existing available currencies to trade them. WBR
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Why did I get stopped out?
neueneuen replied to JG46's question in IG Trading Support - Dealing Questions
P. S. This spike is not visible on CFD account graphs (which is likely deemed OTC execution even if they trade underlying themselves mostly on ASX), so I think IG (or their pricing provider if any) knows how to handle auction before market open on ASX. -
Why did I get stopped out?
neueneuen replied to JG46's question in IG Trading Support - Dealing Questions
@ryanair737, if it helps, from my limited knowledge of Australian market and brief analysis, 1. this was not 1 hour after market open - the spike you're showing on the graph happened after 10:05 exchange (Australian) time, this is right at market open; if you have Australian time set up in IG preferences, I think they have an error with backdating DST (daylight saving time) on graphs, that being said apart from the wrong timezone shift their graph is right; 2. this was Monday after weekend - so even more widened spread is to be expected; 3. ASX (primary exchange where this symbol is traded) has a peculiar way of opening the trading day https://www.asx.com.au/markets/market-resources/trading-hours-calendar/cash-market-trading-hours - Wesfarmers would have opened trading between10:08:45-10:09:15 exchange time, before that market depth (bid/ask) is auction style, no trades are being executed, price discovery is happening for market opening; as far as I can tell this day trading for this symbol opened between 10:08:45-10:09:00; 4. as far as I can tell, at market open (around 10:08:45-10:09:00) bid-ask for this symbol narrowed to normal, so one could not actually trade at the spiked price you're showing; unfortunately, it was long ago so I cannot check precisely what bid-ask was exactly prior to the first executed trade; 5. I have not been in such a situation, but I guess the very worst that could happen is the market depth during auction might trigger stops/close out (as you say) but it would get executed with normal, not spiked price; which is very much not ideal but not as bad as you describe; any worse execution would open IG to complaints of mispricing as there was no way to execute a trade at the spiked price on the underlying market; OTC execution might be problematic here; but I hope IG knows about this peculiarity of ASX exchange and does not even trigger stops/close outs before auction on market open has ended. It would be interesting to get more first-hand information (what would have happened) on point 5 directly from IG. In short, the displayed spread is not IG error, this is the way ASX exchange works, but it should not create any problems. -
@D-B, there is no such functionality directly in the API. You will receive every candle update (throttled a little if there are too many compared to TICK mode). To achieve what you want, you will have to include CONS_END field (which is set to 1 on the first event of the new candle), process all the events in the order they are received, processing pseudocode if (event.cons_end == 1) save_candle(last_event) last_event = event UTM represents the beginning of the period the candle represents, hence its not changing within the candle period. If you choose TICK mode, UTM will change with every event.
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Why did this trade close a loss?
neueneuen replied to johnbosworth's question in IG Account Support - MyIG Help
Not exactly. Your chart is showing a Mid price which is simply a calculation of middle between Bid and Ask. You can (almost) never buy or sell at Mid price because it does not exist in the market, it is simply a calculation. You long at Ask, you close a long at Bid; you short at Bid, you close a short at Ask. Your stop loss for a long position is the stop loss that will close a long, therefore should be matched against a Bid price and therefore a Bid chart, not a Mid chart. To show a Bid chart click on the Mid text near Daily text on the top left side of the graph and choose Bid. Ask minus Bid or Ask minus Mid doubled is spread. To simplify, this is essentially the commission you pay to the broker. From a commission perspective, the broker (IG) does not (should not) care whether your position goes up or down - it affects your profit and loss, not theirs (in IG case you would also pay ~0.8% for conversion of profit or loss if currencies of account and instrument don't match, but this is besides the overall point). The broker cares from risk perspective (you having enough margin) but not from profit perspective. All that being said, when you posted the question initially, it interested me and I went and checked. I could not find a price at that moment that would trigger your stop loss at the described time either. Now there are some conditions that could have triggered force closure of a position despite market price - e. g. if you did not have enough margin in the account for all positions, not just this one - but this information is not available in your post. -
@cate, June 11 is behind us, Tier 1 margin for TRY pairs has been set at 15%, not 5%. Pity.
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Short selling, what am I missing?
neueneuen replied to amonk's topic in New Client Trading Questions
@amonk, if you're trying to short on an ISA account, this is contrary to ISA rules and is restricted everywhere. The motivation is kind of that ISA is intended as cash-only account and shorting implies loan (when you short, the counterparty loans you the shares which you sell). The only way to somewhat of short on an ISA is through long on an inverse ETF (https://www.investopedia.com/terms/i/inverse-etf.asp), but this is more complex than simple shorting, and I'm not sure if any are available at IG (I haven't checked). -
Dividend Calenday
neueneuen replied to RayA's question in IG Technical Support - Platform and App Help
@RayA is this what you're looking for? https://community.ig.com/blogs/blog/1-ig-community-blog/1-dividend-adjustments/ -
neueneuen started following First time FX trade
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@cate, fully agree. Not even from the best client experience standpoint (which I, as a client, want, but I appreciate businesses sometimes have misaligned incentives with their clients despite what Principles from the FCA Handbook might tell us) but from a profit for IG standpoint. If they're doing things right (and if they're not, they have bigger problems than a few FOREX pairs), they get X% of profit per volume traded and per volume overnighted, so maximizing volume their clients trade should be beneficial for them. Increasing margin requirements 25%/7.5%=3.33 times means there would likely be 3.33 times less volume, hence 3.33 times less profit for IG no matter the client profit or losses. Especially in the case of TRY pairs, where minimum trade is so high (~£50k min margin requirement for EUR/TRY after margin requirement changes) that most would not even be able to make a trade at all with new margin requirements as they don't have enough deposit. As far as I can tell, market conditions for TRY have not changed in any way to make this margin requirement change necessary. During the elections it was more understandable. Unless their goal is to stop clients from trading these pairs. As I said, this does not make any sense to me at all.
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@cate, as far as I've been told, morning May 24 IG liquidity provider notified them about some market discovery along the lines of "the market is pricing in future Turkish central bank rate decline hence we need to increase the margin requirement and this is why swap was so low for overnight May 23-24". Swap bid was applied that day at 6.8% annualized (and swap was applied at around 10:30 am BST which is ~2 hours later than usual at IG and 14.5 hours later than the end of the trading day when overnight is supposed to be calculated - swap bid shown on the platform was lowered right before 10:30 am which is not how overnight should work) for USD/TRY which is roughly 7.35 times less than the CB rate and several times less than short term swap rate that day. As far as I understand, there is no relation to June 11 margin changes. As far as I understand, IG does not know whether the margin returns to the previous values and when. This does not make any sense to me.
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When I started reading this thread, I was going to respond that IG has already provided the new margin requirement in the announcement email. Then I looked closer at the email, which says, I quote, > We’ve just completed a general margin review on our non-equity markets to bring them in line with current market conditions. The affected asset classes are forex, indices, commodities, bonds/rates, exchange-traded funds (ETFs). The links are to old (current) margin requirements! It does not make any sense within the context of the paragraph. This is kind of disingenuous as a separate issue. So I second (third) the question in this thread: why traders are not given the new margin requirements?
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First time FX trade
neueneuen replied to ducatiman998's question in IG Trading Support - Dealing Questions
@alpen is right overall, but I think demo account requirements differ from live account, hence him being wrong on some details (or maybe he's simply in a different market than me where they're different). Minimum bet for EUR/TRY is £0.5 and the current Tier 1 margin requirement is 25% (was 7.5% not long ago and no one knows if it goes back to 7.5% anytime soon). Therefore, the minimum margin (aka deposited money) required would be around £51500 to open the minimum (quite large) trade. USD/TRY is slightly better, minimum bet is £0.2, so the minimum (still quite large) trade would require around £16150 margin. If it helps, you can open smaller trades on a CFD account, where EUR/TRY Mini exists, but of course this would have different tax implications than spread betting. Also, @ducatiman998 make sure you understand FOREX swaps (holding position overnight) before you go anywhere near TRY. TRY swaps are extremely expensive (and if you're trying to earn the swap by shorting, the swap bid/ask spread is very high and volatile and your credit might be much lower than you anticipate) and if this is really your first FOREX trade, you're in for a very rude awakening once you see them applied. Just wanted to flag this for you - Turkish lira is probably not the best pair to start trading FOREX with. -
Hey @KoketsoIG, I hope you are well. Same problem most of the last week and this week, TRY is being overnighted at around 20-25% when IG estimated rate is 52.99% and Turkish CB rate is 50%. But the worst was overnight today, May 9. EUR/TRY swap bid was showing in the morning at 200+ which is very low as it is. Just before applying the swap it changed to showing even lower 189.06 which is ~19.8% annualized which is outrageously low. 19.8% vs 52.99%/50% - this is 2.68 times lower. What is going on? It's been more than a month since you've asked the desk. This is an ongoing issue that keeps affecting customers. Why is there no answer yet?
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Hey @KoketsoIG, I hope you are well. Same problem today. GBP/TRY (and as far as I can see, other TRY pairs had similar situation today) swap was applied off swap bid=157.92 which is ~14.2% annualized when IG estimates funding rates in TRY as 52.99% (see below) and Turkish CB rate is 50%. That's ~3-3.5 times less than expected. Could you kindly investigate, please? WBR