Mcg
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Posts posted by Mcg
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1 hour ago, ColinJ said:
'already demonstrated that you’ll be giving it all back and more' - I'll take that compliment; if I can afford that kind of cost that makes me a millionaire,
'why don’t you buy the underlying shares and stop paying money to borrow off your broker.' - its a very simple concept, listen carefully! its called Maths; I can buy ~5 times more of a single stock and more variety of stocks, thereby spreading my RISK - let's call that management shall we,overnight funding £costs c.0.0065% / day - not much price %age gain needed to cover that, but it is also monitored daily following on from the initial analysis of the Company fundamentals that made the stock a RISK BASED pick and HOLD, and others a day trade - ooh! let's call that management shall we!
'couldn’t care less how much you’ve made' - WRONG AGAIN, you have already stated many times that we don't know what we are doing, ours is not a winning strategy - if your measuring of success in trading is not financial gain what is?
You simply make arbitrary statements with no ability to provide substantive detail or qualify, its becoming clearer with each post that you are simply a Troll
🤦🏼♂️
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.
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34 minutes ago, ColinJ said:
'they’re under no obligation to extend leverage on stocks they don’t want to.' - correct, for anyone who wishes to open a new position from a given point, but they ARE OBLIGED to honour existing open positions: If market conditions change against IG existing business model then they change for future trades, not historical ones - that's the deal, we don't have to just accept it as a risk because it is not STATED as a risk by IG
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.
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2 hours ago, ColinJ said:
'No successful trader ever had a victim mentality' - WRONG - being successful and being a victim (in this case of disgraceful business behaviour of forced open position closure by IG) are not mutually exclusive; 'something which you’re unable to do because you’ve overleveraged on illiquid crappy small caps' - WRONG - my small cap margin is <2% of equity; 'you won’t make money with your attitude' - WRONG - >£100k trading profit this financial year: the fact that IG gave notice they they were screwing over some of their customers doesn't make it any less of a screw over; yes IG can decide what markets they wish to trade in, but what they should not do is touch open positions taken out in good business faith; we fully understand the way leverage works, so if IG don't want the risk that situations will move against them dont offer the contract in the first place; I don't recall IG ever asking me if I would like to close my CFD position because it had been open too long in their opinion - happy to take the overnight fees!
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.
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2 hours ago, ColinJ said:
'don’t know any profitable traders who hold on to spreadbets for months, it’s such a bad idea' - not necessarily - its simple Maths; my £75,000 Saga CFD position overnight cost over 3 months is a great deal for a £15,000 profit, even if it took 6 months
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.
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44 minutes ago, Sunny Days said:
Hello,
Could someone kindly explain for me,
I open a position for spot gold at price 1740 @ £10 pp BUY. No stops or limits set.
at 20:59 I log out of the platform at the position is 1720, a loss of 20 points.
what charges will I pay ?
Same scenario as above but this time a SELL 20 points in profit
Although I have been trading fro 4 years I have never left a position open over night or over a weekend.
Thank you in advance
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.
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45 minutes ago, Leodog said:
Catvs - glad you got help from community and seem satisfied with result. However, as an Ig client for 2 years can I just point out that you received absolutely no customer support from IG index and your problem is not really resolved. Only pointing this out as I am having the same problem using the debit card I use to fund my account. Just suddenly not working - no reason behind it, no indication from IG that there is a problem. Been a client of IG for 2 years and despite trying to get customer support ---- there is never any response.
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.
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On 02/04/2021 at 23:51, Getrich said:
Please do no insult me. This is about how IG treats it's clients. That fact that you keep criticising the victims of this behaviour is instructive. Like is said. You know nothing about my trading strategy, my risk management strategy or my profitability. These things are all irrelevant. IG screwed a lot of traders, some of the profitable, some not. The point is how IG behaves. Stop deflecting attention from IG's outrageous behaviour by criticising the victims.
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
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3 minutes ago, Getrich said:
Because you can screw your customers in the name of a "conscious business decision", does not mean you should screw them or that you can keep screwing them without consequences. And since you do work for IG, can you please inform this forum how many hundreds of thousands or pounds were lost by customers in the name of a "conscious business decision" by IG?
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
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1 minute ago, Getrich said:
Who are you to question my trading strategy? You know nothing about it (unless you work for IG). My trading strategy has been profitable for some considerable time. This is about outrageous behaviour by IG. It has nothing to do with the client's risk management strategy.
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
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4 minutes ago, Getrich said:
Do you work for IG? Must be if you promote this kind of treatment of customer. BYD is not Gamestop. I can understand if this is decided for risky stocks that trade over the moon, but it makes no sense to have the same principles apply to a $67B market cap company. Even Warren Buffet owns a part of BYD. Why is it not good enough for IG? What is the rational like a share like BYD that is not a small cap stock? Pretty low if you ask me. Why should the small retail investor place any trades with IG if they can and will withdraw at any point without justification. Would be much better to go to another provider. They can just cut your throat for no good reason at all. Like buying a cat from someone, then they give you warning and say if you do not kill the cat in two months we will have to come and kill it. Obviously you are not going to kill the cat. Does it make it right if they then come and kill it just because they gave you notice and because they feel they can. Does that make it morally right to treat their clients like this? If we make money they make money. For example the more money we make, the more we can buy and sell and the more money they can make. If they want to cut their risk they can increase their margins or make the spreads bigger. There are ways. If you are forced to pay 100 percent margin on BYD how much risk is left for them. Why do they choose to force people to sell sensible good shares, they must gain from doing this or why else would they. If people complain on social media and to the FCA it is a good thing as risk will be less for us and they will force companies to treat their customers with the respect they deserve. If we do not complain some customers will lose everything. One day the tide (IG) can turn against you and IG can decide to give you notice on everything you bought. People will loose a lot of money and some already did. This is not fair practice. Do not believe the lie that this was about risky shares like Gamestop! Repay the money you took or this might end like the PPI scandal for you.
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.
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1 hour ago, Getrich said:
I do not loose money, I trade sensible. But if you buy something from a shop, they agree to sell it to you and then they come and knock on your door and force you to sell it even if it is not a good time to sell, If you do not sell the product you bought from them then they just take the product that you bought from them away. How is this right in any capitalist society. Maybe it would be allowed in a socialist society where people do not have any rights. But customers should not accept this behaviour in a free and fair society. Forcing people to sell something that you willingly sold is not acceptable and should not be tolerated. Why did people get money back from PPI claims? Because big institutions unfairly tried to make money out of their customers. This is not about my trading and if I win or loose money. This is about fairness and treating your customers with the respect they deserve. If we just accept big institutions like IG not treating us fairly once, it will happen again and again and one day it will affect each one of us. Keep complaining about this on social media, Ombudsman etc. If enough people complain through all these methods something will get done and it will protect all of us in the future. Do not accept being stepped on, stand up and fight for your rights. I do not believe that the person posting against me is a customer as they would understand what this is all about. Not about losing money but about right and wrong.
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.
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44 minutes ago, Stonk said:
If an open position is at a loss, then that's its value. By closing it, IG are equally likely to have saved you from further losses.
You can't argue that future news flow would return it to profitability. Any expectation of that, and its likelihood, are already built into the price. It might happen, but it also might not, and the current price is at precisely the level that reflects that balance of possibilities.
You did not lose £7500 the moment IG closed the position. You had already lost it.
Bottom line, if you cannot tolerate losing £7500, then you should not let your positions reach a P&L of -£7500, because that's exactly what losing £7500 is.
This 100%. Wasting your time explaining this though because these people have no interest in modifying what they do to protect their capital better
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9 minutes ago, StormChaser said:
FFS, are they paying you? You sound like an IG lapdog.
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.
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34 minutes ago, StormChaser said:
They can set their timelines (after they totally f--k over their clients). They cannot alter the timelines for newsflow on which we based on trades. You don't know profitable traders who hold on to spread bets for months? Do you know profitable traders, in the bagger category? If you limit your risk to 1-2% you probably limit your upside to 1-2%. At what frequency? Nothing more than threading water. Tell me how YOU make money, rather than telling me what my issues are?
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.
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58 minutes ago, StormChaser said:
This would be like Paddy Power taking a football bet and closing you out at half time because you are one-nil down.
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
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4 minutes ago, ColinJ said:
There is nothing in my post that suggests the loss value related to one trade - in fact it was a number of positions closed by IG that were currently in a loss state but could easily return to profit within a timescale acceptable to me; one such example being SAGA, regarded by me as a pandemic recovery stock
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
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8 minutes ago, StormChaser said:
This is not correct. Stocks on AIM for example, or pharmas, can have huge volatility between news/reports and a figure like 7k is easily possible even on a modest account. That does not mean the above poster is a loser, just that he is (or was ...) probably waiting for some news or results to drive the stock forward. As for just "meme" stocks, they withdrew about 900 products.
What IG have actually said is that they have lots of new clients and need to refocus their resources. So effectively, they have withdrawn products types often used by long time clients in favor of new clients. That is completely irrational. Now they are going to lose long time clients. And ... when things get back to "normal" they'll be losing a lot of those new clients also.
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.
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2 hours ago, ColinJ said:
So following the decision at the end of February 2021 by IG to exit certain share CFD markets of their choice I have today, through no fault of mine, lost c.£7500.00 from my funds through forced position closures
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
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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
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7 hours ago, Stonk said:
Anything is possible, given that this seems to be a typical thought process of many US "investors". There seems to be no shortage of willing Ponzi participants for the real day-traders to extract money from.
"... my new hobby is day-trading ... last week I bought some AMC ... I'm ready to hold and take it to the moon ..." So, the exact opposite of day-trading, then.
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
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Found a video of Combi lol
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1 hour ago, combi said:
Spread betting is designed for short period?,
This is a huge lie,, I was buying and selling AMC since 2014,, then I decided not to sell just hold.,
However there are contracted positions, some until May, some until September and so on.,
My positions are contracted as DFB, deffo not short period.,
Frustration?, Not really.,
This is not about to be frustrated because something is not going as I wish.,
This is about IG forcing us to close our positions before the contracted date.,
And here, They forcing me/ us into financial loss.,
I am willing to leave my positions open until last dealing date and if until then share price doesnt move up, Ok, my fault.,
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
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18 minutes ago, combi said:
Who said I am not happy with stock?, I am and thats why I was buying in and opened many position.,
IG allowed me to do that, now they want to close my positions.
I would prefer my positions to be open until Last Dealing date 06/04/2029 and if share price is not moving up or above my average, fair enough I did take that risk and I am happy to accept the loss.,
But there was never mentioned Risk that IG can force close my positions, just because they make decision., Doing this, They causing me financial loss, and thats why they should compensate not only loss but also all commissions I paid over the years to keep my positions.,
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.
Really poor IG rules for modest accounts
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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.