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CharlotteIG

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Blog Entries posted by CharlotteIG

  1. CharlotteIG
    After many of you mentioned that the fees and charges were confusing we created a new link on the deal ticket to improve communication of charges for Leveraged accounts. 
     


    We're still looking at ways to improve this for the future so we're open to suggestions which is you could comment below will be appreciated by our development teams. 
     
  2. CharlotteIG
    Gamestop AMC trading restrictions
    Due to the recent extreme volatility, and in order to prioritise the service we give our existing clients, we are not allowing any new positions to be opened on the US stocks GameStop and AMC Entertainment.

    These restrictions apply to all IG accounts, and will be reviewed regularly. You will still be able to close any open positions that you have in these stocks. Any orders that you have already placed on these two stocks will remain.

    In addition, if you have any spread betting or CFD positions on either stock, please be aware that the margin required to keep your positions open will increase to that listed below from 4pm (UK time) on Monday 1 February. Please ensure that you have enough money on your account to cover the margin requirement. Stock New margin AMC Entertainment Holdings Inc 100% GameStop Corp 100%  
    Margin increase
    Due to increased volatility, from 4pm (UK time) on 1 February 2021 we are increasing margin requirements for a range of stocks: Stock Tier 1 margin Palantir Technologies Inc 50% Macerich Co 100% Blackberry Ltd (CA) 100% AMC Entertainment Holdings Inc 100% GameStop Corp 100% Blackberry Ltd (US) 100% SunPower Corp 100% Gogo Inc 100% Bed Bath & Beyond Inc 100% Accelerate Diagnostics Inc 50% Ligand Pharmaceuticals Inc 100% National Beverage Corp 100% AMC Networks Inc 100% American Airlines Group Inc (All Sessions) 25% Nokia OYJ - ADR 25% Nokia OYJ (Fin) 25% Nokia OYJ (DE) 25% Nokia OYJ (SE) 25% Nokia Corporation 25% ContextLogic Inc 100% Virgin Galactic Holdings Inc (Ord) 100% Sundial Growers Inc 100% Dillard's Inc 100% Fossil Group Inc 100% iRobot Corp 100% Tootsie Roll Industries Inc 100% National CineMedia Inc 100% CEL-SCI Corporation 100% GSX Techedu Inc 100% Vir Biotechnology Inc 100% Seritage Growth Properties 100% How will I be affected? If you have any open positions on these stocks at 4pm (UK time) on Monday 1 February 2021, then the margin required to keep those positions open will change. You’ll need to have enough money in your account to cover the increase and prevent your positions from being closed out.

    Margin requirements for working orders will also be subject to the new rate.

    Changes to margin rates are the same for daily funded bets and forward bets, and for cash CFDs. For full details of how we calculate our margins, please contact us on the details below.
  3. CharlotteIG

    GameStop shares: what you need to know

    By CharlotteIG,


    Analyst article
    The surge in GameStop has caught the market’s attention, and that of financial media. A small retail stock, in an industry in long-term decline, has seen its market value rise very rapidly, as retail traders, coordinating via the website Reddit, have bought into the stock using options, forcing the hedge funds that have taken short positions in it to close out their trades, pushing the stock yet higher.

    What is a short squeeze?
    This short squeeze is a classic market move, familiar to many traders, and is something that can occur in almost any market, if the conditions are right. In this, the conditions were that short positions had been built up in a company that had seen its stock price fall nearly 95% from its 2013 high. This ‘one-way’ trade had continued regardless of the moves in broader indices, as investors took advantage of the fall in traditional retail volumes, leaving companies like GameStop with declining businesses.
    All seemed to work well, until traders on the ‘Wall Street bets’ sub-Reddit decided to start buying the stock. When the stock rises, some shorts have to cover their position by closing out and buying back the stock. This in turn drives the price higher, forcing out others, and so on. A short squeeze develops, which can, as in this case, drive the price to dizzying highs that are arguably entirely unconnected with the actual business.
    Some might suggest this is market manipulation, but the short positions in a company are public knowledge, and it is not actually illegal for ordinary investors to club together in the same stocks. Traders who short need to be aware that such squeezes can happen and should also realise that the vast majority of trades, particularly in equities, are on the long side. Most investors, whether retail or professional, buy stocks in the hope that they will go up.
    Shorting is an important part of the market and helps the activity of ‘price discovery’ to develop. It also helps liquidity and should be viewed as an underhand activity. But while share prices can ‘only’ go to zero, giving long investors a theoretical floor, they can, in theory, go as high as they like. Thus, those with short positions, can, if they do not manage their risk properly, suffer unlimited losses.
    Continued gains are not guaranteed
    While GameStop, and others that have been heavily shorted, has enjoyed a huge rally, this does not mean that continued gains are guaranteed. The future of any trade is always uncertain, and after such a huge ride there may be many investors, of all types, who still think that the shares are overvalued, and will look to short them once again. Regardless of whether an investor trades long or short, they must make sure that they have a clear risk management plan in place, with stop levels clearly defined.
    We are currently seeing increased volatility in certain stocks, including GameStop and AMC. This increases the risk of sudden, large or rapid loss and the potential for gaps, where stocks fall dramatically when the market opens.
    Please note that IG does not offer options on GameStop or AMC Entertainment, or the ability to short these stocksIt must be stressed that IG does not offer options on GameStop, with only spread bet, CFD trades or share dealing available on our platform.
    The activity in these stocks has been confined to a small part of the market, with normal price action continuing in the vast majority of stocks. It will command plenty of attention in the media, and the excitement will undoubtedly provide an attraction for many traders, but sometimes it is better to watch from afar rather than attempt to jump in to such a volatile situation.
  4. CharlotteIG
    We are honoured to be nominated for The Good Money Guide Awards, which aim to champion financial services firms that excel in innovation, product, and customer service. Voting helps others make smart decisions about who to invest with and provide valuable feedback to improve online investing, trading, and currency transfer providers.
     
    In 2019, IG won Best Forex Broker and Best Overall Broker and we would love your help again in 2020.
     
    Vote for IG here: https://goodmoneyguide.com/awards/trading/
     
    Get your votes in by Friday. 
     
    As well as this, if you think we're missing anything for your trading needs please let us know here: 
     
    Thank you so much for trading with us. 
  5. CharlotteIG
    Although the GSK share price has underperformed against its close competitors in the past year, signs are starting to improve following positive moves from an activist investor and the release of highly anticipated new products.
      GSK shares down 2% year to date Shares reached £13.48 this morning but slumped afterwards GSK retains operations in the UK and not sell off vaccine operations What is going on with GSK shares right now?
    GlaxoSmithKline shares saw a brief rally after the price dropped as markets opened in London on 27 May. This was following news that the US activist investment firm Elliott Management, which recently acquired a significant stake in GSK will not be forcing the company to sell off its vaccine and pharma departments. However, the share price slumped shortly after, indicating that the beleaguered pharma giant is not out of the woods yet.
    Speculation had been rife that the US company would also slash GSK's R&D budget and divide it up into UK-based and overseas operations. However, Elliott Management said all such plans would be scrapped following discussions with the GSK leadership and the UK Government, which reportedly sees GSK as a 'national champion'.
    The GSK share price rose to a peak of £13.48 after markets opened, before trending downwards in the morning. Markets may consider this a sign that Elliott has faith in the £68 billion company to produce better returns for shareholders in the future, following the success of recently-announced Covid-19 treatments produced by GlaxoSmithKline. Nonetheless, issues related to its under-performance this past year remain outstanding.
    Does the longer-term future look positive for the GSK share price?
    GSK's reprieve has also come as a relief to figures in government who strongly wished to see a strong GSK remain in the UK. This does not indicate how the GSK share price will perform in the longer term, though. GSK has consistently underperformed the FTSE this year, with shares falling 18% over the past 12 months, while the FTSE has grown 16% in that time.
    Meanwhile, competitors such as AstraZeneca have seen notable growth in their share price, partly due to its success with its Covid-19 vaccine. However, signs are on the horizon that GSK might be catching up.
    On Wednesday, the US FDA approved for nationwide use of GSK's new Covid-19 antibody drug, in a move that could represent billions of pounds in revenue for the company. GSK also is set to begin the phase III trial of its very own Covid-19 vaccine, something that may benefit GSK share price if things go well.
     
     Daniel Smyth | Financial Writer, London | Publication date: Thursday 27 May 2021 15:49
  6. CharlotteIG
    Investors and traders would do well to remember that there are plenty of markets to choose from – it’s not always necessary to follow the crowd.
      The recent volatility in certain stocks has sparked renewed interest in the market across all sections of the media. The names of these stocks, and others that might be viewed as possible candidates, have been emblazoned across news reports and headlines.
    Such an increase in their visibility will undoubtedly lead many to think that these are the stocks to buy right now, to the detriment of all others. It is understandable – humans will see others getting involved in all the excitement, with talk of huge wins, and will want to get involved themselves. Previous market manias like bitcoin, or tech stocks, seem dull by comparison.
    Market history teaches us that following the crowd rarely ends well. Usually, by the time something has hit the headlines the ‘obvious trade’ is over, or at least the most significant chunk of it anyway. Nobody talked about bitcoin at $1000, but at $19,000 it was everywhere. No one wanted to talk about buying stocks at the lows in 2008, or in late 2018 or March 2020 when they had endured heavy falls. But when stocks hit new records after these sell-offs there was plenty of focus on them.
    The spotlight of media attention will make it seem like the only stocks in the market worth trading are the ones making the headlines. But this isn’t true. ‘It’s not a stock market, it’s a market of stocks’, goes the old adage. Just because a company isn’t seeing its share price gyrate by tens or even hundreds of percents a day doesn’t mean it isn’t worth considering for a potential trade.
    Everyone has their own risk tolerance. Some people, for example, experienced traders, are used to big swings in prices and can stomach the changes in profit and loss that go with them. Others shy away from such extremes in volatility, which is a perfectly acceptable way to trade or invest.
    It is important to remember the time element too. Fortunes can be made and lost in the stock market, and in a variety of time frames. It isn’t necessary just to look to the end of the day. Longer-term trades, with smaller position sizes, can help promote a calmer approach, and with a greater length of time comes a different view of how much a trade might make. A day trader might look for ten or twenty points, but those looking to hold a trade for weeks or even longer will be expecting the move to cover hundreds or even thousands of points.
    In any trading strategy, the most important element is to make sure that your mistakes are survivable. Being stopped out and losing 2% of your account is no problem – being stopped out and losing 50% (or even more) is. There’s no rule that says you have to be in the hottest stocks, or that you have to look to make big money in one day.
    In trading, as in life, it is important to find what works for you. Chasing the big volatility might seem like fun, but it’s not the only way to trade.
       Chris Beauchamp | Chief Market Analyst, London | Publication date: Friday 29 January 2021 15:08
  7. CharlotteIG
    Martin Luther King Jr Day- Change to Trading Hours
    Hey everyone, opening hours on certain markets will change for Monday 20 and Tuesday 21 January 2020, as it's a US federal holiday marking the birthday of Dr Martin Luther King Jr.

    All times listed here are UK time. This information is accurate to the best of our knowledge, but it is possible that these hours could change. 
     
    All the best. 
  8. CharlotteIG
    May bank holiday trading hours
    There will be some changes to our normal opening hours over the public holidays in May. Check the table below to see how the changes could impact your trading.

     
    We have tried to make this information as accurate as possible, but it is intended for guidance only and is subject to change.
     
  9. CharlotteIG
    Memorial Day & UK Late May Bank Holiday
    There will be some changes to our normal opening hours over the UK spring bank holiday and US Memorial Day period. Check the table below, and find out how the changes could impact your trading.
    Monday 25 May
    UK equities, UK index futures, interest rate and commodity markets (except Brent Crude & Gas Oil) are closed. We’ll make an out-of-hours price on the FTSE 100. Brent Crude and Gas Oil futures close early at 6.30pm. US index futures closes early at 6pm. We’ll make an out-of-hours price on Wall Street, US 500, US Russell 2000, FANG Index and US Tech 100 from 6pm until the futures reopen at 11pm. US equities and soft commodities are closed. US energies, interest rates and metals close early at 6pm. The VIX closes early at 4.30pm.  
    Tuesday 26 May
    Livestock opens at 2.30pm and lumber at 3pm. All times listed here are UK time. These hours are accurate to the best of our knowledge, but it’s possible that they could change.
  10. CharlotteIG
    We've released our new Share dealing platform. 
    This includes the following: 
    News workspace Filter and search Better charts The deal ticket  Alerts News and analysis Account balances  
    You can find our walk through video on our website:  https://www.ig.com/uk/help-and-support/investments/share-dealing-and-isas/how-do-i-use-the-share-dealing-platform
    Give me any feedback you have and I will happily pass it onto the developers. 
  11. CharlotteIG
    Improve trading performance with our new tool
    Discover our new trade analytics tool, designed to help you evaluate and improve your trading performance. Accessed directly in the platform, it enables you to:
    ·        Gain deeper insight into your winning and losing trades
    ·        Identify and eliminate expensive trading mistakes
    ·        See your total returns, including all fees and adjustments
    ·        Monitor how much you pay in costs and charges
    We want you to keep building on your trading successes. To do that, you need data that lets you see exactly what worked well, and what didn’t. That’s why we’ll soon be adding extra features to make your trades even more transparent, as we continue to enhance the tool.
     
    Where can I find the tool?
    The new feature can be found in the  ‘live accounts’ tab in My IG and select ‘trade analytics’ on the left-hand menu.

     
     
    Where can I discuss this tool in the community
    We did test this tool with some traders late last year meaning some clients would have seen the tool before others. If you want to chat with other traders about this feature, click on the forum below: 
     
     
  12. CharlotteIG

    Our trading hours this Christmas

    By CharlotteIG,


    Trading hour changes
    You can find changes to trading hours over the Christmas period listed below, in UK time. Please make sure that you’re familiar with the changes, as they may affect your trades. Date Changes Thursday 24 December Half day in most markets. All out-of-hours markets close at 6.15pm, forex and cryptocurrencies close at 10pm. Friday 25 December All markets closed. Saturday 26 December Normal weekend trading (8am open). Sunday 27 December Normal weekend trading. Monday 28 December UK & Irish shares closed. Most European & US shares open. Tuesday 29 December Normal trading. Wednesday 30 December Normal trading. Thursday 31 December Half day in most European markets. Forex, cryptocurrencies and out-of-hours markets close at 10pm. Friday 1 January All markets closed. Saturday 2 January Normal weekend trading (8am open). Sunday 3 January Normal weekend trading. Monday 4 January Normal trading. This information is accurate to the best of our knowledge, but it's possible that these hours could change. For full information on our most popular markets' dealing hours over Christmas, visit our Christmas opening hours page.
  14. CharlotteIG

    Podcasts from IG

    By CharlotteIG,

    Why we've started making Podcasts
    Podcasts are a great way to develop your trading knowledge and prepare for your time on the markets. You can explore different trends and events with our market deep dives as well as gain incite from our in-house experts and guests. 
     
    Where can you find them?
    Our Podcasts are now available on Spotify and Apple Podcasts. You can also find more information by following the link here.
     
    What Podcasts have we made so far?
    The IG Trading the Markets podcasts cover a range of topics on current market trends and educational material. Below you can find a list of the podcasts available so far.

     
    We have been looking at your interests and realised that you wanted more information on Cannabis.
    If you have anything you would like us to talk about, let us know by commenting so we can priorities your topics for our podcasts. 
  15. CharlotteIG

    Presidents' Day trading hours 2021

    By CharlotteIG,


    Trading hour changes
    Presidents' Day trading hours 2021
    There will be some changes to our normal opening hours on Presidents’ Day – also known as Washington’s Birthday. Certain markets will be affected on Monday 15 and Tuesday 16 February 2021. Check the table below, and find out how these changes could impact your trading. Monday 15 February US equities and soft commodities are closed

    Canadian equities are closed (Family Day)

    US index futures close early at 6pm. We will make out-of-hours prices on the Dow, S&P and Nasdaq until futures reopen at 11pm

    US energies, metals (including Spot Gold and Silver), bonds, US interest rates and Dollar Basket close early at 6pm. They reopen at 11pm

    UK energies open as normal

    The Volatility index closes early at 4:30pm. It reopens at 11pm

    London Sugar closes early at 5pm Tuesday 16 February Livestock opens at 2:30pm and lumber at 3pm All times listed here are UK time. This information is accurate to the best of our knowledge, but it is possible that these hours could change. We're here to help If you have any questions about this or need help with your account, you'll find quick answers in help and support. You can also get in touch with our team 24 hours a day from 8am Saturday to 10pm Friday (UK time).
  16. CharlotteIG
    US Reporting Season has begun, and will continue until the middle of February.

    The market data that matters:
    EPS Growth Expected (YoY)
    Revenue Growth Expected (YoY)
    Current Price-to-Earnings
    Est. FY1 Price-to-earnings
    Current Dividend Yield
    -9.2%
    -0.6%
    30.7
    22.9
    1.53%
     
     
     
     
     
    What is the market expecting out of this earnings season?
    The markets are expecting another contraction in earnings growth for the quarter, as corporate profits continue to feel the effects of the Covid-19 recession. Entering into earnings season, market consensus was projecting a year-over-year in earnings of 9.4%, according to data compiled by financial data company FactSet. If another quarter of negative earnings growth were to materialize, it would mark the 5th out of the last 6 reporting periods in which earnings contracted, despite the S&P500 continued to push to fresh record highs.
    What are ther key themes to watch out of earnings season?
    Will guidance reaffirm lofty stock market valuations?
    With expectations that earnings ought to contract for another quarter, the key issue for market participants this reporting period will be whether companies deliver guidance that reflects the positivity currently baked into prices. In a bullish sign for market fundamentals, profit estimates began an upgrade cycle in the last quarter, as market participants factored in greater optimism about the economic outlook going into 2020. Even still, valuations remain very high across the S&P500, with the trailing price-to-earnings ratio historically elevated above 30 – a level not seen since the Dot.com boom and bust.
    What impact will fiscal stimulus and vaccines have on profits?
    The upgrading cycle for corporate profits has come as a result of two macroeconomic factors: the roll-out of multiple Covid-19 vaccines in the US, as well as the deluge of fiscal stimulus coming from US President Joe Biden’s administration. The dynamic has sparked the so-called “reflation trade”, which has seen stocks sensitive to the business cycle outperform the market. Confirmation from company’s that they see a material pick up in profits owing to the vaccine and stimulus ought to buoy markets, who are positioned for a big uptick in economic activity this year.
    Which sectors will lead and lag?
    As investors position for an uptick in the global business cycle, the performance of cyclical sectors this earnings season will be closely watched. According to FactSet, the materials sector is set to deliver closer to market-leading earnings growth for the quarter, aided by the recent recovery in global commodity prices. Previous market leaders in the health care and IT sectors, which outperformed the market last year, are also expected to deliver positive earnings. On the side of the equation, some areas of the market sensitive to economic growth are expected to show considerable falls in EPS: the industrials and energy sectors ought to perform the worst this reporting period.
    Source: FactSet How could this earnings season impact the financial markets?
    Earnings season is already delivering considerable upsize surprises for the market, as company profits recover and valuations experience an upgrade cycle. There is tremendous optimism in the markets right now, with market participants taking on risk to position for an economic recovery driven by vaccine developments and fuelled by a stimulus. Despite calls of complacency amongst investors, the trend for the S&P500 looks skewed clearly to the upside, albeit with the momentum that’s slowing down marginally. Continued positive surprises from S&P500 companies ought to support the index’s rise, as it continues to clock-up fresh record highs.
               Kyle Rodda | Market Analyst, Australia
    This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
  17. CharlotteIG

    Robinhood Grey market

    By CharlotteIG,

    Robinhood Grey market
    By taking a position on a grey market, you’re taking a position on a company’s potential market cap ahead of its initial public offering (IPO). The price of a grey market is a prediction of what the company’s total market capitalisation will be at the end of its first trading day.
    If you think the estimated value of the company is over- or under-priced, a grey market enables you to take advantage of this disparity before the shares are released publicly on the stock exchange.

    Why are traders interested in grey market stocks?
    Traders are interested in grey market stocks because it can be a way of taking advantage of movements in the company’s share price before it has actually listed.
    Also, any activity is usually taken as an indicator for the direction the stock price will take once it has listed. The pre-market price can be used to gauge the demand for the shares.
    How to trade grey market stocks.
    Grey market stocks are traded over-the-counter (OTC), which means that they are not offered by a stock exchange, but only by brokers and trading providers.
    By taking a position on a grey market stock, you’re taking a position on a company’s potential market capitalisation ahead of its IPO. If you think that the company will be worth more than the price indicated, you can buy the market. If you think that the price is an overvaluation, you can sell.

    When it comes to settling your trade, this can only be done once official trading of the share has begun. IG calculates the settlement price based on the official closing price of stock on after first day of trading, as reported by Bloomberg.
     
    We're LIVE with a grey market on the forthcoming Robinhood Grey market.
    The market Settles basis the market capitalisation of Robinhood at the official close of the primary exchange on the 1st day of unconditional trading excluding any outstanding and optional shares. All OPEN trades will be voided if there is no floatation by 31st Dec 2023.
    Float date is yet to be announced.
    Market info:
    Trading hours: Around the clock : bar 2115 Fri - 0800 Sat 
    Deposit factor: 25%
    Lot size: $10
    Min bet: £1 or $1 for CFD
    Max online size per clip: £50 (at this early stage)
     
    We are not offering working orders or non-guaranteed stops/ limits.
    CR stops are available with a stop distance of 5pts. Max size of £50 (for now) at any one level with 1 pt. spacings. CR premium has been set as 0.5pts.
     
    The market can found in the Popular Markets watchlist on Puredeal, WTP and mobile apps and the specific IPO Grey markets watchlist if available. It will not appear in the WTP search function.

     
    This market is available to clients in the UK, Australia, and most European sites (France, Spain and Portugal excluded). It is not available for clients based in Dubai, Japan, and Singapore.
  18. CharlotteIG
    Roblox share price surges following direct listing
    Online games company Roblox has joined a long-list of companies from the last year – including the likes of Snowflake, Bumble and Unity – which have enjoyed a strong day one pop following their listing on public markets.
    Unlike those three companies however, Roblox skipped the IPO process completely, instead choosing to take the direct listing approach. Compared to an IPO, under a direct listing, a company sells its shares directly without the help of investment banks.
    Of course, that doesn’t mean there’s no oversight. On Wednesday, before trade commenced, the New York Stock Exchange set a reference point of $45.00 per share for Roblox.
    Demand for the stock went well above that reference point when its shares became tradable on the NYSE, with Roblox opening at $64.50 per share and finishing out the session at $69.50 per share.
    At Wednesday’s closing price, Roblox trades some 54% ahead of the reference price set by the NYSE.
    Putting the fun back in fundamentals: The FY21 outlook
    While it's hard to say if yesterday’s investor frenzy was justified or not, Roblox has posted and continues to expect strong growth in the coming year.
    To illustrate that point, for the year ending December 31 2020, Roblox said it had 32.6 million daily active users and boasted over 30 billion ‘hours engaged’ on the platform.
    This translated to total booking of $1.9 billion and total revenue of $924 million. As with many other companies that have listed to much fanfare, Roblox also remains loss making, recording a $253 million net loss in FY20.
    Looking ahead, Roblox’s management has forecasted continued lofty user and revenue growth for FY21.
    For the first quarter of FY21, the expectation is for daily active users (DAUs) of between 37.6-39.6 million, implying a growth rate of between 59-68% on the prior corresponding period.
    Revenue growth expectations are comparably high, with the company saying it expects Q1 revenues of between $320-335 million.
    The company does however expect daily active user growth to moderate significantly for the full-year (FY21). Here the company said it expected full-year DAUs to come in at between 34.6-36.4 million, implying a growth rate of between just 6-12%, on the prior corresponding period.
    Full-year revenue growth however is poised to remain elevated, with the company guiding for FY21 revenue of between $1,440-1,515 million, implying an impressive growth rate of between 56-64%, on the prior corresponding period.
    By comparison, non-GAAP bookings are expected to come in at between $2,000-2,125 million
    Those considered expectations are built on the assumption that a post-COVID world will hurt growth, at least to some degree. Here management said, as:
    ‘Restrictions ease, we expect the rates of growth in 2021 will be well below the rates in 2020, however, we believe we will see absolute growth in most of our core metrics for the full year.’
     
     Shane Walton | Financial Writer, Australia | Publication date: Thursday 11 March 2021 
  19. CharlotteIG
    Rolls-Royce shares (LON: RR) sunk by 10% to 83p on Friday after half-year results spooked investors over long-running problems with supply chain issues and inflation.
    The FTSE 100 engineer has struggled to gain traction after the pandemic crash in 2020 saw its shares collapse from 236p in February 2020 to just 39p by October 2020.
    And after recovering to 147p by November last year, the Ukraine war combined with tightening monetary policy has seen it surf below penny stock status since early April.

    Rolls-Royce share price: half-year results
    Despite positive momentum on its various R&D projects, earnings made for relatively bleak reading.
    Positively, the FTSE 100 operator generated revenue of £5.3 billion, a slight increase on H1 2021. However, it also made an underlying loss before tax of £111 million, primarily because of higher costs squeezing gross margin, which fell to 17.7% from 21% in the same period last year.
    In the words of CEO Warren East, Rolls is suffering from ‘post-covid indigestion.’
    By division, the picture is slightly more complicated. Its most important, civil aerospace, saw underlying revenue increase by 8% to £2.34 billion. The division makes money by manufacturing and servicing civil plane engines.
    While large engine flying hours remained at 60% of 2019 levels, they are currently up to 65%, and Rolls expects this key metric to rise to 70% by year-end and return to pre-pandemic levels around 2024. Despite the ‘theoretical risk’ posed by the expected recession, East thinks this only ‘might affect exactly which month in 2024-25 we get back to 100%.’
    Results elsewhere were mixed. The power systems division saw revenue grow by an impressive 20% to £1.37 billion. Further, order intake was £2.1 billion, up 53% compared to the prior half after enjoying record quarterly orders in Q2.
    Conversely, its defence division saw revenue fall by 9% to £1.61 billion, partly because of lower spare engine sales and delays in deal sign-offs. This performance will be especially disappointing for investors hoping for a ‘Ukraine boost’ to the bottom line.
    Source: Bloomberg Where next for Rolls-Royce shares?
    This is a complex question. Incoming CEO Tufan Erginbilic will soon be stamping his mark on the FTSE 100 stock. The reception to his appointment has been somewhat mixed; some view his accomplishments at BP as evidence of a much-needed firm hand on the tiller.
    Others question his lack of connections with Whitehall, an important consideration given Rolls’ political importance. The company has previously enjoyed the strong support of Business Secretary Kwasi Kwarteng, a potential candidate for Chancellor when a new cabinet is formed later this year.
    In the short term, Rolls-Royce is trading in line with expectations. Despite the airport chaos, it is still expecting the all-important civil aerospace division to continue to show improvement through 2022.
    However, supply chain issues remain a concern. It’s being affected by delays in semiconductor deliveries, which could worsen if geopolitical problems surrounding Taiwan deteriorate. It’s also struggling to find alternatives to Russian titanium.
    And with CPI inflation expected to exceed 13% year-end, combined with union-backed demands for significant pay rises, Rolls’ already slipping margins will present a key conundrum for its new CEO. Fortunately, Erginbilic has a track record of cost-cutting while improving performance.
    This will become increasingly important as interest rates rise. Rolls’ net debt stands at over £5 billion and is only going to become more expensive to service as fiscal policy tightens.
    Longer term, Rolls-Royce’s stuck-in-the-mud share price must be starting to frustrate investors.
    Its project to deliver small nuclear reactors appears to be moving at a snail’s pace. The FTSE 100 company now has a shortlist of six potential sites, but take-off will need to wait until a new PM is declared. And this ‘new markets’ division is seeing operating costs escalate, in this half to £48 million despite delivering negligible revenue.
    But there are visible tailwinds. The company recently announced a deal with Qantas to supply 12 Trent XWB-97 engines to power 12 A350s, capable of powering non-stop flights between the UK and Australia. Moreover, it’s developed a world-record beating electric plane, and power gearbox, which could both create significant new revenue streams.
    The challenge is to turn these disparate successes into concrete share price action, which sees Rolls Royce shares break out of their rut.
     
     Charles Archer | Financial Writer, London | 
  20. CharlotteIG

    Shape IG's future

    By CharlotteIG,


    Product updates
    We've added this blog so community members can have their say on projects we're looking to add in the future. Your vote will help us determine what our project teams work on to shape the future of IG.  
    Please have a look at all of the ideas below before voting. If you have time we would also appreciate you leaving any feedback positive or negative about the ideas, in the comment section. 
    1. Live Streamed Calendar Events
    • Access to live streams of important economic and market announcements – accessed via the economic calendar
    • IG will provide streams from major central bank announcements, major company earnings calls and other important company events (e.g. product announcements)
    • You’ll be able to set reminders and alerts from these from the economic calendar, and then watch them in a window while interacting with the rest of the platform


     
    2. Personalised Notifications
    • A service that provides you with personalised push notifications based on your trading activity and interaction with IG. These will cover:
    • Trade analytics insights
    • Recommendations for IG Academy courses based on your recent activity
    • What other notifications would you like here?
    • This feature builds on current automatic personalised notifications about major movements in the markets you’re most interested in
    • How would you like these to be delivered?

     
    3. Personalised workspace 
    What is it?
    The personalised workspace will give you the option for IG to pre-populate your workspace and watchlists depending on your interests. We’ll base this on the assets and products you’re interested in
    What kind of things can I use it for?
    • The personalised workspace will help you to:
    • Stay on top of the markets you’ve interacted most with
    • Reduce workspace clutter by deprioritising things you haven’t looked at for a while
    What else would you like from a personalised workspace?

     
    4. IG Academy walkthroughs
    What is it?
    • Currently IG Academy courses are self contained – and use text and diagrams to explain theoretical trading concepts
    • IG Academy Walkthroughs will demonstrate how practical concepts work using our platform

     
    5. Ask IG ... 
    What is it?
    • A range of IG services, accessible through voice channels. You’ll be able to access Ask IG through your preferred smart speaker (e.g. Google Home, Alexa), through the voice function or your phone (e.g. Siri) or through the IG app
    What kind of things can I use it for?
    • You’ll be able to use IG to:
    • Answer questions about your account and open positions
    • Ask questions about the wider markets
    What else would you like to use Ask IG for?

     
    As mentioned earlier in the post, if you have any feedback on any of these or if you want to tell us answers to any of the bolded questions please do so in the comment sections. This post will be open until 28th February 2020, 23:59, and the information we get from it is being incorporated when deciding on our next project. 
    Thanks everyone for getting involved! 
     
  21. CharlotteIG

    The week ahead

    By CharlotteIG,

    Chris Beauchamp’s insight
    A shortened week for the US due to the Independence Day holiday sees non-farm payrolls published a day early coinciding with the trade balance and weekly jobless claims figures.
    Other key events of note include PMIs from China and first quarter figures from Sainsbury’s.
     
    Economic reports

     
    Company announcements

     
    Dividends
    Upcoming
    FTSE 100: Coca-Cola HBC, Homeserve, National Grid
    FTSE 250: Murray Int’l, ICG, Airtel, Workspace, Primary Health Properties
    Dividends are applied after the close of the previous day’s session for each market. So, for example, the FTSE 100 goes ex-dividend on a Thursday, but the adjustment is applied at the close of the previous day e.g. Wednesday. The table below shows the days in which the adjustment is applied, not the ex-dividend days.
     
    To find the full index dividend adjustments for this week please go to:  
     
     
     
  22. CharlotteIG
    Trade ByteDance (TikTok) ahead of its IPO, with the IG grey market
    By taking a position on a grey market, you’re taking a position on a company’s potential market cap ahead of its initial public offering (IPO). The price of a grey market is a prediction of what the company’s total market capitalisation will be at the end of its first trading day.
    If you think the estimated value of the company is over- or under-priced, a grey market enables you to take advantage of this disparity before the shares are released publicly on the stock exchange.

    Why are traders interested in grey market stocks?
    Traders are interested in grey market stocks because it can be a way of taking advantage of movements in the company’s share price before it has actually listed.
    Also, any activity is usually taken as an indicator for the direction the stock price will take once it has listed. The pre-market price can be used to gauge the demand for the shares.
    How to trade grey market stocks.
    Grey market stocks are traded over-the-counter (OTC), which means that they are not offered by a stock exchange, but only by brokers and trading providers.
    By taking a position on a grey market stock, you’re taking a position on a company’s potential market capitalisation ahead of its IPO. If you think that the company will be worth more than the price indicated, you can buy the market. If you think that the price is an overvaluation, you can sell.

    When it comes to settling your trade, this can only be done once official trading of the share has begun. IG calculates the settlement price based on the official closing price of stock on after first day of trading, as reported by Bloomberg.
     
    Where to find the grey market on the platform 
    You can find this grey market on the platform by selecting Popular Markets> ByteDance (TikTok) IPO Market Cap (US$Bn)

     
    Let me know if you have any questions about this!  
  23. CharlotteIG
    We're offering weekly equity options on the platform for some stocks over earning season. Meaning you don't have to call us if you want to trade certain equity options. This week it's Apple, Boeing and Facebook. We're also offering Tesla but that will stay on the platform going forward whereas the weekly options will change depending on which week of earnings season we're in. 
     
    What is an Equity option?
    Equity options are a form of derivative used exclusively to trade shares as the underlying asset.
    In essence, equity options work in an extremely similar way to other options, such as forex or commodities. They offer the trader the right, but not the obligation, to purchase (or sell) a set amount of shares at a certain level (referred to as the ‘strike price’) before it expires. To buy an option, traders will pay a premium.
    When are these available to trade?
    These equity options will be available in the main session (14:30 - 21:00 UK time). 
    Where to find them?
    You can find them under 'Weekly US Equity options' on the left list on your web platform. 

     
    Earning season information for this month: 

  24. CharlotteIG
    We're offering weekly equity options on the platform for some stocks over earning season. Meaning you don't have to call us if you want to trade certain equity options. This week it's Baidu Inc. We're also offering Tesla but that will stay on the platform going forward whereas the weekly options will change depending on which week of earnings season we're in. 
     
    What is an Equity option?
    Equity options are a form of derivative used exclusively to trade shares as the underlying asset.
    In essence, equity options work in an extremely similar way to other options, such as forex or commodities. They offer the trader the right, but not the obligation, to purchase (or sell) a set amount of shares at a certain level (referred to as the ‘strike price’) before it expires. To buy an option, traders will pay a premium.
    When are these available to trade?
    These equity options will be available in the main session (14:30 - 21:00 UK time). 
    Where to find them?
    You can find them under 'Weekly US Equity options' on the left list on your web platform. 

     
    Earning season information for this month: 

  25. CharlotteIG
    We're offering weekly equity options on the platform for some stocks over earning season. Meaning you don't have to call us if you want to trade certain equity options. This week it's Beyond Meat Inc. We're also offering Tesla but that will stay on the platform going forward whereas the weekly options will change depending on which week of earnings season we're in. 
     
    What is an Equity option?
    Equity options are a form of derivative used exclusively to trade shares as the underlying asset.
    In essence, equity options work in an extremely similar way to other options, such as forex or commodities. They offer the trader the right, but not the obligation, to purchase (or sell) a set amount of shares at a certain level (referred to as the ‘strike price’) before it expires. To buy an option, traders will pay a premium.
    When are these available to trade?
    These equity options will be available in the main session (14:30 - 21:00 UK time). 
    Where to find them?
    You can find them under 'Weekly US Equity options' on the left list on your web platform. 

     
    Earning season information for this month: 

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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.

The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.

CFD accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd and share dealing and stocks and shares ISA accounts provided by IG Trading and Investments Ltd. IG is a trading name of IG Markets Ltd (a company registered in England and Wales under number 04008957), IG Index Ltd (a company registered in England and Wales under number 01190902) and IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Index Ltd (Register number 114059) and IG Trading and Investments Ltd (Register number 944492) are authorised and regulated by the Financial Conduct Authority.

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