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Mcg

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Everything posted by Mcg

  1. I never get why retail traders are so entitled, they can’t be bothered to read the rules. All of these requirements are FCA ones, nothing to do with the broker. When it was left to the brokers they allowed retail to trade crypto and most indices/forex on 0.5% margin. So it’s not IG that don’t want you to do it, they don’t care if you overleverage and lose as they just make the spread and hedge the exposure.
  2. 🤦🏼‍♂️ This is what I mean. It’s not spreading your risk at all, you clearly don’t understand. You have 5 times as much risk as you would have with an unleveraged portfolio. The volatility on that is going to be very high, plus you’re holding overnight and exposed to gaps and abrupt moves on earnings and other newsflow. Using the word ‘fundamentals’ to describe your risk management strategy is another red flag tbh. That’s not a sell rule to protect capital. It’s basically you saying ‘right I’ve done my analysis and the share is worth X, but the market says it’s worth Y. The market is clearly wrong so I’ll just hold forever until the market prices it where I think it should be.’ It’s amateurish and there’s no plan if things don’t progress as you think they should. A big reason you’re so p*ssed is because you’re being forced to close trades at a loss. If you had a proper risk budget and a plan you would have just closed out the positions and looked for the next trade, would be no big deal. But you’re fuming and want to blame somebody because you allowed trades to run against you and now have to crystallise a loss that you wanted to avoid.
  3. No they aren’t obliged.. they just have to give you notice of their intentions which they did. You should get a lawyer to go over the small print with you. If anything what IG are guilty of is not doing their due diligence on potential clients because they seem to have a lot of clients who think in this way. As I said, there should be some sort of training course covering all of these things off before people are allowed to open an account.
  4. Tbh my view on it is that people like you need to do some sort of financial awareness course before opening an account because you don’t understand the system. I couldn’t care less how much you’ve made because you’ve already demonstrated that you’ll be giving it all back and more, so it’s kind of irrelevant. It’s not exactly been difficult over the last year to HODL and make money.. US markets up 80%, a record year on year return. There are a lot of clowns who have made money and now they think they’re the next Warren Buffet. I’ve explained in detail already how leveraged trading works in this thread but you choose not to listen. If your position is less than 2% of equity, why don’t you buy the underlying shares and stop paying money to borrow off your broker. It would save you complaining when your broker decides they don’t want to offer margin against your shares anymore which for some reason you think they should be obliged to do in perpetuity. Its pretty clear to me that this Colin J, Stormchaser and Getpoor all have no clue what they’re doing.
  5. You’re just HODLing and hoping for the best though.. it’s not a winning strategy because you have no risk management or exit plan for your trades.
  6. Hi, it’s relatively simple to work out. You need to look at the KID document for the instrument you’re trading.. think it’s on the platform when you click on the ticker and then under market info, at the top. They work it out based at 10pm everyday and it’s based on the notional exposure. So whether you’re in profit or at a loss is irrelevant.. it would just be based on £10 x 1720 = £17200 notional. You get charged LIBOR plus a margin (usually about 2-3% per annum) and it depends on what the instrument is as to what the reference interest rate is. Tbh you could go to the effort of working it all out but I would say just do it and you’ll see how much it is, it’s not a material amount for one night and that will give you the answer. I trade FTSE and it costs you about half a point, so if you’re £10 a point the cost would be around a fiver. It would probably be about a quarter of that for yours given gold is (1700/6800) around a quarter the value of FTSE, so I’d guess at somewhere between £1 and £1.50 a night without going to the trouble of finding out which interest rates they use for it.
  7. It’s not the best.. I’ve had an account with them 10 years and it used to be a lot better. There’s two things going on.. first one is that there’s limited staff in the office with the pandemic and whatever system they have in place for dealing with it isn’t adequate. Second one is that there’s been a massive increase in the number of clients taken on with the retail trading frenzy. And these people drain time because they ask lots of daft questions, so when you have something administrative like this that you need sorting you can’t get through. Hopefully it all irons itself out once things go back to normal. As long as the platform doesn’t go down and execution is good that’s the main thing even though things like this are annoying. If you have a spread betting account I believe that you will have an assigned client manager. They will probably only contact you directly if you’re trading above a certain amount as they like to offer hospitality. But if you can find out who they are you can call them directly and that should help. Other brokers are having the same issues though, it’s not just IG where there’s been a drop off in service.
  8. I know you aren’t profitable just from the information you’ve posted on here, it’s obvious. Victims?! No successful trader ever had a victim mentality. They react to changing markets and conditions, something which you’re unable to do because you’ve overleveraged on illiquid crappy small caps and now your broker is pulling the plug on them. You should just cash out and take the money out before you lose anymore as you won’t make money with your attitude
  9. I’ve no idea lol but I can see from this forum why there are 75% of clients losing money.. I’ve already explained to you why they haven’t screwed you but the mechanics of financial markets seems to be over your head. I wouldn’t give up the day job that funds your gambling habit if I was you lol
  10. Couldn’t care less about your trading strategy and no I don’t work for IG. Just been pointing out the nonsense that some people post on here.. because you just want to blame a broker rather than take responsibility for your own junk trades
  11. What are you bumbling on about? This has nothing to do with killing cats or whatever 😂. I explained pretty clearly why a broker might choose to do what they’ve done. At the end of the day if you trade on margin then it’s up to the broker to decide which shares to offer. It’s just part of the game. It’s not like they chop and change which shares they offer on spreadbetting, it’s a conscious business decision to withdraw from certain markets. Just either trade something less risky or buy stocks without relying on broker margin. IG are the largest spread betting provider in the UK so if they do something it’s quite likely the others will follow, or most of them probably never offered leveraged exposure to such shares to start with.
  12. All of these posts just show that there are people who have got involved with trading who just don’t understand the financial system or how spread betting actually works. All the complaints to the FCA will do is increase the likelihood that leveraged trading gets banned for retail traders because they will conclude that too many retail traders don’t understand the risks they’re taking. Which would be a shame for the rest of us When you place a spread bet with IG or any other broker you’re using leverage and they extend you margin. On the indices it’s 20:1 and on individual stocks it’s 5:1 for retail traders. The basis of your point is that you expect a broker to extend you margin in perpetuity, whenever you want it. Even if market conditions have changed or their business model is changing. Given the retail trading boom driven by Fed easy money pumping the markets, there are loads of small cap stocks going haywire and the volatility is through the roof. Market conditions are dictating that for some of these stocks, there’s not much liquidity and brokers are having difficulty in laying off the other side of the bet on exchanges. IG can’t take the other side of your trades because that would be a conflict of interest, so if they’re unable to lay the bets off then the only other option is to not allow clients to buy. This is what obviously happened with the likes of Gamestop or AMC, and on the back of that IG have decided they don’t want the hassle of people betting on illiquid stuff when the underlying market isn’t always there for them to lay off. Its a good move. Most of IG’s revenues come from long term clients placing sizeable and regular trades as they make their money on the spreads. There’s very little money made on small time retail clients making small bets and blowing accounts left right and centre. Particularly when you factor in how much employee time they have to divert towards answering daft questions from these people. Now of course the markets should be open to anyone.. accessibility is important. All of those big IG clients were newbies or small traders once... and of all of the newbie retail clients some of them will be big clients in 10 or 20 years time. But unfortunately 90% of them will never make it and will drop out. So in summary IG should offer trading to all, that makes sense in terms of their business model. But they’re under no obligation to extend leverage on stocks they don’t want to. This is just a risk you take as a trader borrowing money off your broker to trade. Either don’t use leverage and buy the underlying in which case you aren’t answerable to your broker... or trade something like the indices where ample liquidity makes a decision like this unlikely. Either way, it’s something you need to factor in and adapt to if you want to be successful at this.
  13. This 100%. Wasting your time explaining this though because these people have no interest in modifying what they do to protect their capital better
  14. Nope.. I just understand how it works and what the risks are. Most of the people on here complaining have massive holes in their trading strategies and just want to blame the broker rather than fixing their problems. It’s sad but most won’t make money until they change their approach.. there are people on here complaining about fraud, writing to the police/treasury/prime minister/tooth fairy lol. If they spent half as much time on managing downside risk or at least learning about it as they do moaning and blaming other people for their losses then they might actually make some money and keep hold of most of it when something unexpected happens.
  15. They aren’t screwing their clients though because it’s transparent and they don’t have to make a market for you on things where there’s little liquidity. It’s not like they’ve randomly closed you out, you were warned it was coming ages ago. You guys are just salty because you’ve allowed trades to move significantly against you because your risk management is off and now you don’t want to exit the trades and take the loss. Most good traders have no difficulty flattening their book and going again as from time to time things like this can happen, but there’s a lack of adaptability here. And no because as a product it’s just not set up for holding for months, particularly on volatile shares. You have to pay financing charges and the leverage is totally unsuitable for overnight holding of highly volatile stocks when a relatively small move would take you out when you’re leveraged 5:1. Spread betting is just that.. betting. Have fun with it and take advantage of the leverage intra day. Long term holds are better done by holding the underlying.. no leverage to worry about, no margin calls, no brokers changing rules. Personally I spread bet daily, but I don’t allow positions to move against me too far from my entry price, and just look for somewhere between 1:1 and 4:1 risk reward. Would have no issue with exiting any trade i take as I’m not over leveraged. If I like a stock I buy the physical shares because that’s the most appropriate way of gaining exposure and means I can chill and not have to get stressed out about stuff I can’t control all the time.
  16. But they told you they were going to do it weeks ago so gave you plenty of time to make alternative arrangements. I don’t know any profitable traders who hold on to spreadbets for months, it’s such a bad idea and is one of the reasons why over 75% are losing money hand over fist
  17. What id say to that is it sounds like you’re looking to invest in things for the long term rather than bet on their price moves. So purchasing the stocks would be preferable to spread betting where you just have an agreement with a broker and don’t actually own anything. I’m sure some of these stocks have huge vol so using leverage might not be appropriate. All I’m saying is when stuff like this happens it’s **** annoying, I get that, but often it can be mitigated by doing something different
  18. In my opinion anyone who loses more than a few percent of their account on a trade is a losing trader on their way to blowing up. The stats show there are many of them. If someone is drawing down 7k on a modest account they’re simply doing it wrong.. they need to change what they’re doing if they want to be profitable long term. If risk was controlled right then the fact that the broker is pulling certain shares, whilst I can sympathise that it is annoying, it’s not a deal breaker because you just move on to trading a different stock. It’s only annoying so many people because there are lots of losing traders with no exit strategy, no stop losses, who are essentially just HODLing and risking a large chunk of their account, and they’re then being forced to crystallise the losses that they’d already accrued anyway. Leveraged trading products aren’t really designed for holding for months on end either as cost of carry is too much. Im not saying this to be a d1ck, it’s just that we’ve all been there and it doesn’t work. Have to adapt to win.
  19. Don’t take this the wrong way but unless you have a 7 figure account you shouldn’t be losing that amount of money on one trade.. need to keep risk to 1-2% of capital. They’re also only exiting the meme stocks aren’t they.. not large caps or anything where there’s liquidity. It’s always a risk that market conditions can change.. IG being unable to lay off trades on these shares is one such change in conditions. They gave like a months notice they were doing it and the losses have already occurred, they occur daily when it moves against you not just when the trades are exited. It would require a change in strategy to achieve long term profitability IMHO
  20. Your main problem is your strategy.. the risk reward is fine as it looks like 2:1. But the gap between your stop is limit is tiny, it’s 0.12%. That means your stop is about 0.04% from your entry and limit is 0.08% from entry. You’re going to struggle to get any consistency with that.. market can move up and down and touch the stop too easily, it needs to be wider. By the same token, you can easily get big winners than 0.08% so you need to widen both. I’d look at something like average true range and see what’s the expected size of the moves then determine profit targets from that and set stops in proportion to that and in appropriate areas. Even if there was no spread it would be a struggle. But as you’ve found out it makes a difference.. the spread is more noticeable the tighter your trading range is
  21. It’s basically been a speculative frenzy.. too many people see trading as some sort of get rich quick scheme with no risk involved. It’s worse in the US as their general standard of financial education seems woeful but it’s caught on over here too, as you can see by some of the more popular threads. Call buying is slowing down now so maybe the frenzy is losing momentum and these retail investors are about to take a hit. IG is probably doing them all a favour by stopping them overleveraging on over priced junk
  22. Well yeah of course it is. Because you incur the financing costs on a DFB so you’re leaking about 3% per annum on the notional value straight away. And it encourages you to use leverage on a stock with high volatility.. it’s capable of going up ten fold or falling 90%. That sort of drawdown wipes you out if you’re using leverage. Plus as well you have counter party risks which you don’t have when you own the physical asset, something which you seem to be refusing to acknowledge even exist. Why not just buy the stock and forget about it if it’s a long term hold and avoid all these issues. Spread betting is for taking a punt on short term direction
  23. I can certainly see why you’d be frustrated, it’s always annoying if something stops you doing something and you miss out on opportunities. But that said, spread betting is designed for short term holding of positions. It’s basically the wrong instrument to use for holding over a long period of time. You’d be better off just buying the stock using a share dealing platform. Would also say that if using leverage on a long term hold is what attracts you to spread bet on it, that sounds like it won’t end well. The stock price has seen some massive declines so anyone overleveraged on it would be crushed. Generally with spreadbetting if you can’t exit your positions and move on to the next one you’re doing it wrong.
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