IG Markets CFD transaction - Aussie Stock Forums

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  1. #1

    Question IG Markets CFD transaction

    Hi all,
    I did 2 rough papertrades on IG Markets' PureDeal demo platform and can't fully understand how they arrived at the "Controlled Risk Premium." Thought I'd get a faster answer here.

    BUY WorleyParsons Ltd
    Closed 21/01/2010 $24.26
    Opened 20/01/2010 $24.71
    Size 647
    P/L -291.15
    Comm. -31.69
    CR Prem. -47.96
    Total -370.8

    SELL Fortescue Metals Group Ltd
    Closed 21/01/2010 $5.02
    Opened 20/01/2010 $5.16
    Size 3100
    P/L 434
    Comm. -31.56
    CR Prem. -111.97
    Total 290.47

    Commission is 0.1% and Guaranteed Stop Loss (used for both WOR and FMG) is 0.3%.

    I have no queries with the buy WOR transaction, although I don't see where the interest component is. With the sell FMG, I don't understand where the -111.97 controlled risk premium came from. It's just over 2X the 0.3% I was expecting? Again, the interest is not indicated (there were other fields in the transactions page that I've left out here, but only because they were blank).

    Thanks for any help. Totally new to CFDs.

  2. #2
    skc's Avatar
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    Default Re: IG Markets CFD transaction

    Control risk premium is different for each stock. Higher volatility = higher premium. Somewhere on their website there's that information.

    For interest paid click My account > P&L breakdown and it gives you the P&L for the trade. Much better than the transaction view which do the interest daily. The P&L view sums it up for you.

  3. #3

    Default Re: IG Markets CFD transaction

    Ah, thanks for that. I found the document you were referring to at point 5 of igmarkets.com.au/cfd/cd-shares.html,
    but it says the risk premium is still 0.3% for FMG.

    Also, the details I posted were in fact taken from the P/L breakdown page, not the transaction page and the interest charged details weren't on there (fields were blank). There's nothing additional to what I'd posted. Strange.

  4. #4

    Default Re: IG Markets CFD transaction

    If you need prompt answers in the furture and don't have acces to a comp remember you can always just give the guys at IG a call. I have found them to be helpful and understanding.

    Nice to here that youve decided to paper trade before jumping in.

    Be sure to check out all the info in the begginer forum.

    GL + HP

  5. #5

    Default Re: IG Markets CFD transaction

    Hi Speculator,

    It's not urgent. Just dislike hanging on the phone. Seems easier to intermittently compose and then send off an enquiry to the forum than making the time (who knows how long) around my work schedule to call them. The last email enquiry I sent them has not been answered yet, but it's only been a day. Replies come within hours here, so thought it's worth a try.
    Thanks for the suggestion.
    There's too much at risk with CFDs not to papertrade

  6. #6

    Default Re: IG Markets CFD transaction

    IG Markets is actually very good with their emails- usually get a reply on the 2nd day. The CR premiums can change *daily*, they said, and at the time I bought FMG, it was in fact 0.7%. Another thing to check before buying.

    Regarding the absence of info on the interests charged/paid, it seems to be a problem with the demo platform that they've now fixed. It wasn't affecting the live platforms.

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