ColinJ
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Posts posted by ColinJ
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On 16/02/2021 at 12:19, Malcolmbell1 said:
Any idea why Tremor International unavailable to open? There have been comments that they are seeking a USA listing soon?
IG removed c.1000 shares from leveraged trading at the end of March 2021 - Tremor was on the list - and began force closure of any open positions, regardless of P&L state
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On 02/04/2021 at 13:40, Mcg said:
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.
'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
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'some reason you think they should be obliged to do in perpetuity.' correct, once a position is open they ARE obliged - its called a deal/contract; there is no time limit set on a CFD trade and nothing in IG T&C that allows them to close an open position that is not margin call based
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20 hours ago, Mcg said:
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.
'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
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On 30/03/2021 at 22:29, Mcg said:
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
'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
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On 06/04/2021 at 10:40, Mcg said:
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
'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!
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18 hours 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.
Nowhere within my original post does it state that I cannot tolerate losing £7500, also, my post states that the £7500 loss is from my FUNDS, NOT P&L, the pertinent issue is that it is my decision if and when a P&L loss is crystallised, not IG's.
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Again there is nothing in my post that suggests I don't also hold actual shares, which I do, or that the loss value associated with IG's actions does not fall within the percentages you suggest; I also trade CFD's to take advantage of the leverage. What I expect is when I make a contract/deal I expect it to be honoured, I don't expect to be sh@fted because its in their business interest. If I decide to hold some trades for an extended period that is my choice and I pay accordingly.
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27 minutes ago, Mcg said:
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
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
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That is the planned action which necessitates dealing with Compliance first
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As required I have lodged a complaint with IG compliance as I believe there are a number of contractual points that undermines their actions
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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
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On 23/02/2021 at 18:05, SpreadBetter729 said:
Hello all,
Never have I been so angered by a trading platform as I was by IG’s decision to give one weeks notice of a margin increase to 100% and a month to close position on around 1000 stocks.
This will cost me and I’m sure thousands of other clients thousands of pounds and has massively decreased my trust in the platform. In my case this impacts Petrofac, a fairly well known and quite large UK company. Hardly an AMC or GME. Why on Earth are stocks like that being removed?
I understand the need for risk management on IGs side, of course I do, however this could easily be carried out by stopping the opening of new positions and an an unlimited closing time with the margin requirements kept the same as upon creation.
Instead I am being forced to close my position only a few days after I opened it!
I call for IG to reverse this decision immediately or I will be withdrawing my funds to another platform. I would call upon you to do the same, even if this does not impact upon you this time, does not mean it won’t be next time.
My faith in IG has sadly gone.
As you rightly say, based on their decision making affect on existing customer positions, faith in IG being a decent ethical organisation is shattered - I would never have thought a company who had such a good reputation and project such s customer inclusive approach could **** its loyal customers on this manner; please email their Compliance department if not already done in case of future litigation
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On 26/02/2021 at 15:34, CharlotteIG said:
Hey,
I completely understand your frustration and I will pass it onto our senior team as well as the exposure desk.
The decisions has been made but I'm so sorry for how it's impacting your trading. With exceptional client demand in the equity space, we have reviewed our 12000 leveraged markets and decided to withdraw less than 1000 small cap equities, after a review of associated returns on these markets. We will continue to support these markets for Share Dealing, where that product is available.
Sorry again for this inconvenience.
All the best
@CharlotteIGIf you are sorry for the impact, please advise immediately what action you are going to take to resolve the fact you are going to remove £000's of funds from my account through no fault of mine by forced closure? And please, Charlotte, this is not an inconvenience, this is a disgraceful unacceptable business behaviour
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1 hour ago, StormChaser said:
Maybe IG have decided that with such exceptional demand, they don't need to worry about long term clients. The exceptional mob will not be around for the long haul. As a result of what IG have done, long term clients may not be around for the long haul either.
@CharlotteIG
This is not frustration Charlotte, this is absolute anger, rage and fury; I have affected positions that are currently trading at a loss which could easily be in profit in a timescale acceptable to me - in the meantime I pay the associated costs, Saga being a prime example, yet IG are forcing me to take £000's of cash loss through no fault; IG have accepted a commercial contract on which they are now reneging at my significant cost
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On 22/02/2021 at 15:47, CharlotteIG said:
I'm going to pass all feedback onto our senior team regarding these changes.
Apologies again for the inconvenience but know these comments are getting pushed to senior teams so thank you for posting them.
All the best.
@CharlotteIG - the forced closing of positions in affected markets is completely unacceptable business behaviour; open positions should remain as is until closed by customer at whatever timescale they decide
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Closing only: Market unavailable to open
in IG Technical Support - Platform and App Help
Posted
IG removed c.1000 shares from leveraged trading at the end of March 2021 - Tremor was on the list - and began force closure of any open positions, regardless of P&L state