Are you with IG Markets??

[simoncar]

I see that IG markets have a guaranteed stop loss (at a small cost) that can be set a minimum 5% away from the current price. Let say I buy a stock at $10.00 and set a GSLO at $9.50. I now know that I will not lose more than 5% on this trade. Lets say that I want to sell the stock if it drops to $9.75 because I deem this to be the point that I don't want to be in the trade. Can I set an " in market" order to sell at $9.75 (standard stop loss) as well as having a guaranteed stop loss order(worst case scenario) at $9.50? IE. can you have both going at the same time on the same stock?

Cheers Simon

 

[Smurf1976]

There are two types of account. Your account is set up as either guarnateed stop loss or standard account. So I don't think you would be able to use both at once.

That's how it used to work anyway.

 

[Fab]

I just joined IG market their offer appears to be the best. Can anyone comment on it. I have limited understanding of CFDs so your comments will be welcomed

 

[Porper]

I just joined IG market their offer appears to be the best. Can anyone comment on it. I have limited understanding of CFDs so your comments will be welcomed

Fab, I am with IG Markets and they seem ok to me.

Interest is charged at 8%, done daily, if you short you get paid 2%.Big anomaly there.

The guaranteed stop loss is a must have I.m.o.

A word of warning though, interest does mount up and you need to be in stocks that are moving, not hanging around waiting for them to move.

Some people say they make good money.In almost a year using CFD'S I have only broken even, where as my normal trading account has done very well.Maybe not the norm, but I would have a sneaking suspicion that it is.

Potential to make big money is there, but a few losses in a row and it is hard to get back.Be careful.

 

[Fab]

Fab, I am with IG Markets and they seem ok to me.

Interest is charged at 8%, done daily, if you short you get paid 2%.Big anomaly there.

The guaranteed stop loss is a must have I.m.o.

A word of warning though, interest does mount up and you need to be in stocks that are moving, not hanging around waiting for them to move.

Some people say they make good money.In almost a year using CFD'S I have only broken even, where as my normal trading account has done very well.Maybe not the norm, but I would have a sneaking suspicion that it is.

Potential to make big money is there, but a few losses in a row and it is hard to get back.Be careful.

Porper,

Thanks for the advise.Why is the guaranteed stop loss mandatory as I understand they charge you for putting it even if it is not triggered and the normal stop loss would work well too

 

[x2rider]

hi Fab
The GSl can be a real saviour in the market . It can happen that a share will gap your stop loss on a really bad announcement and you are left scrambling to get out
point in fact
When AMP had it demerger in 2003 the share gapped down by 36% . If you had had an initial margin of 5% you would of lost 732% and that would wipe out most acc's
And then on the other side of the coin , If you are short and there is an announcement with a takover or something , then again you are screwed.
5% is a big gap sometimes in a cfd trade but better protection than nothing sometimes
Cheers martin

PS A good mate of mine Jeff Cartridge has just released a book on trading CFD's and there are lots of good trading plans in there as well . A lot of it is focused on protection

 

[YELNATS]

Porper,

Thanks for the advise.Why is the guaranteed stop loss mandatory as I understand they charge you for putting it even if it is not triggered and the normal stop loss would work well too

That's right. I have used IG Markets a lot over the past 6 months and on a percentage basis I am well behind, whereas for my normal trading/investing I am well in front.

I'm not blaming IG for this, but setting stop losses although a good idea, is often tricky. In most cases my losses are due to the early triggering of the stop losses, whereas a few days later the stock has more than recovered and I would have had a profitable trade. Very Frustrating. regards YN.

 

[YELNATS]

That's right. I have used IG Markets a lot over the past 6 months and on a percentage basis I am well behind, whereas for my normal trading/investing I am well in front.

I'm not blaming IG for this, but setting stop losses although a good idea, is often tricky. In most cases my losses are due to the early triggering of the stop losses, whereas a few days later the stock has more than recovered and I would have had a profitable trade. Very Frustrating. regards YN.

It seems that maybe a 5% stop loss is too tight and if you can afford it a 10 or 20% stop loss would be more practical.

 

[Fab]

Why go with IG Market and not CMC Market?

 

[MichaelD]

There are two types of account. Your account is set up as either guarnateed stop loss or standard account. So I don't think you would be able to use both at once.

That's not correct. You can always set a stop loss with IG Markets manually. However, with a GSLO account, every trade MUST have a GSLO set at the time of entry. Non GSLO accounts do not have to have a GSLO in place at entry, but they certainly can be placed at entry if you want to.

i.e. yes, you can have both types of stop loss working a position at the same time.

 

[Sir Burr]

yes, you can have both types of stop loss working a position at the same time.

Hi Michael,

I've been comparing IG Markets and Macquarie CFD and I noticed that Macquarie CFD only allow GSL on certain stocks. Could you tell me please if you can place a GSL on all IG Markets CFD's, both long and short?

Would you have a link to IG Markets list of stocks too?

Thanks SB

 

[Kauri]

Hi Michael,

I've been comparing IG Markets and Macquarie CFD and I noticed that Macquarie CFD only allow GSL on certain stocks. Could you tell me please if you can place a GSL on all IG Markets CFD's, both long and short?

Would you have a link to IG Markets list of stocks too?

Thanks SB

SB
This link should take you to IG pages detailing shares available etc worldwide. Aussie shares start on page 72. Includes margin rate... Limited risk premium if available (GSL rate).. and if shortable.
The GSL must be a min of 5% from market price at time of setting, and can be adjusted free of further charges. ( Some providers charge each time it is moved).

http://www.marketdatasystems.com/content/files/share_lists.pdf#page=72

 

[Sir Burr]

SB
This link should take you to IG pages detailing shares available etc]

Thanks Kauri!

 

[pchivers]

Something that has always confused me because noone else seems to have picked up on it is this:

If you are required to place a GSL a *minimum* 5% away from the current price, and you had an initial margin of 5% (say), doesn't this mean that you would have lost a *minimum* of 100% of that position?

And you have to *pay* for this privilege?!?
And this type of GSL is regarded as a plus?!?

I think I can see why CFD providers like GSLs.

Yikes

 

[Sir Burr]

Something that has always confused me because noone else seems to have picked up on it is this:

If you are required to place a GSL a *minimum* 5% away from the current price, and you had an initial margin of 5% (say), doesn't this mean that you would have lost a *minimum* of 100% of that position?

And you have to *pay* for this privilege?!?
And this type of GSL is regarded as a plus?!?

I think I can see why CFD providers like GSLs.

Yikes

Hi pchivers,

Good point! Personally I can't understand why the 5% to 35% margin rate is seen as the total trade value.

Arn't you placing a 100% trade (not 5% to 35%), am I missing something?

SB

 

[MichaelD]

If you are required to place a GSL a *minimum* 5% away from the current price, and you had an initial margin of 5% (say), doesn't this mean that you would have lost a *minimum* of 100% of that position?

Only if you use the total amount of the margin available to you (which is a great way to rapidly destroy your capital).

i.e. You have $20,000, so you use this to buy $400,000 of BHP with CFDs at 5% margin.

 

[brendan87]

Hi everyone.
I've been looking at opening an account with IG markets because like some others here, felt that they offered the best value. And from my experience - also pretty good service (well, compared to Commsec anyway) with really quick response to emails and follow ups. When I spoke to them today - I actually asked them about the 5% minimum GSL and whether you could put in a closer non-garunteed stop loss and he said no. Reason being that there is the probability that you will get stopped out at your closer non-garunteed stop and then again at your GSL (hence giving you a short position). He said if I wanted closer stops I'd have to get a Standard Account and risk not putting on a GSL. Hope this information is useful.

 

[>Apocalypto<]

I am using Ig Markets at the moment.

I am very happy with them and their interface is simple and it does not freeze or crash. (not yet anyway!) but i have given up using there tick charts.

I did open a account with CMC but i was not impressed with them at all there so called wonder system market maker is slow and it takes so long to open!

Also there prices where way off the market price, I had a position open on PPT and there price was 20 cents off what sanford had I was very unhappy.

They maybe better in some minds but I do not think that. Also they offer 10$ in & out for trdes under 10 000 aus but if you work it out they are charging u more to trade under 10 000 not impressed with their cheapest brokerage call!

What would cost me 6 dollers at IG costs 10 at CMC, but to their defence 3% vs 5% does help.

And cmc charge 30 per month for asx data but ig charge nothing!

Untill i find a better service or see the asx ETO cfd's, I am happy to stay at IG

I am looking at PacificTrader now as another option.

 

[exgeo]

Like several of the other posters in this thread, I've had a stab at CFDs and also spread betting (which looks and feels basically the same from a user point of view). Like the other posters, I've made money on my conventional stock trading account (12x my money over a 7 year period) but rapidly went backwards with CFDs. The difference I guess is that using CFDs with a stop-loss in place means that you not only have to be correct at the point of entering and exiting the trade (a la normal share-trading), you have to be correct AT EVERY MOMENT ALONG THE WAY TOO! If your stop-loos is touched even for one millisecond, you're wiped out for that trade. Very annoying when you watch the tick-by-tick chart immediately spring back up above your stop-loss price, once your stop-loss has already been triggered. I'm sure others here could identify with this. I lost 40k in 12 months on CFDs, but luckily for me made a lot more on conventional trading, so at least I could use the capital losses for a positive purpose. Perhaps I could turn that around and say I went to CFD school, learned that there's no way to make money from them, and the school-fees were 40k. I think you'd be better off buying the IG Markets stock than opening an account- you're more likely to get rich that way!

 

[>Apocalypto<]

For any one with or thinking of joining IG markets.

IG markets have now brought in a new condition in regards to the ASX data feed to keep your feed free of charge you need to place four trades per month over ASX stocks.

If you dont make the four trades there is a fee of 37 dollars.

They dont have a minimum parcel size (contract size).

So you can go long or short over four companies with a contract size of 1 share per contract.

Even if you lose it adds up much less to $37.