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Trouble with Betting on US Stocks
in IG Trading Support - Dealing Questions
Posted
Hello Team
I am new to this platform and new to spread betting as well. So apologies if I am making some silly mistake here.
I opened up a demo account and I have £9943 of virtual currency still left. I was looking up the price of Amazon to understand how an US based stock bet works. I have a few questions:
1. I realized that that the price was showing up as 269004.0 and I cross checked against CNBC to find that the price was $2690.40. So I am assuming that the price being shown on IG is really in cents. Am I correct?
2. I tried to place a very small bet - £0.5 per point - and the margin requirement was shown as £26,886.40. When I tried to still place a deal, it told I had insufficient funds and I had to deposit £17,043 in my account to proceed. If the price of Amazon is $2690 and I am betting only £0.5 per point, I would expect the margin requirement to be 20% of $2690 and this should be covered by the £9943 virtual money still in my account. Am I missing something here?
3. When my base currency is GBP and I am dealing in US stocks, am I right in assuming that the currency conversions happen at 2 points - when I place a bet and again when I exit the bet? I am trying to understand the currency risk here.
Thanks a lot in advance.