[IG has shown it's true colours and is restricting BUYING of AMC and GME]

The bulk of the problem lies with hedge funds who take out impossibly large short positions they know they can’t cover if **** goes down. They then try to leverage companies into nothing (shitter) but at the end of the day positions have to be covered and the market suffers. 

[IG has shown it's true colours and is restricting BUYING of AMC and GME]

I understand it’s down to clearing house refusing the brokers essentially. 
 

forgive me for not potentially understanding this but how does it work that you can short a stock and make billions and clearing houses have no issue in covering that. i.e in the case of hedge funds. I understand that not all platforms use clearing houses and go through DTC directly. 

If I can sell then there is someone who is buying, the clearing house still forwarding the collateral? 

[IG has shown it's true colours and is restricting BUYING of AMC and GME]

Ok thanks I understand, but you can see how people who don’t understand how brokers work will read into it as a market manipulation. 
 

all things being equal (they never are). It is market manipulation to some degree. Essentially you’re forced to hold or sell your stock which will have a negative impact on the price and has direct impact on the market. 

[IG has shown it's true colours and is restricting BUYING of AMC and GME]

20 minutes ago, Caseynotes said:

Actually PhilPhilPhil is making some important points, I was sitting at the trading desk in Jan 2015 when the bottom fell out of the swissy, FXCM went bust and so very nearly did IG, big lessons learnt by traders and brokers alike.

I don't want to trade with a broker who doesn't close the book when things get very hairy and their very business is at risk. 

I didn't care that some crypto guys couldn't catch the lift on a particular day during the bitcoin bubble in 2017 when IG temporarily closed the book and it's the same for punters desperate to get on GME on Friday.

I would rather the broker stays solvent for all the other clients in all the other markets than takes excessive risk on any one particular asset.

If the broker can't get prices from the liquidity providers via the clearing firms then you get slippage, if there is a serious possibility that the amount of slippage could wipe out accounts and bankrupt the broker then the broker needs to close the book and that's what they are going to do no matter what and the FCA will support not censor them.

 

 

I think PhillPhill went about it the wrong slightly. Your explanation makes more sense and was not as aggressive.

I think he’s right in that a lot of people don’t know what they are talking about but why not explain. Putting all complex financial instruments aside like CFDs and Options Futures, spread betting. 
 

Could you explain why they restrict only purchase of particular stocks and not sales if it’s a clearing house issue/liquidity. 

[Margin requirements changed without warning!!!!]

I’m no conspiracy theorist but what the hell? I have positions that I now have to close as I do not want to pay 100%. I also have some GME shares and couldn’t do anything yesterday until toward the end of the trading day on NYSE the system was shocking. I mean I really like IG but what is this bs