IG index? Any spreadbetters?
IG index? Any spreadbetters?
Author
Discussion

DomBertone

Original Poster:

121 posts

194 months

Tuesday 25th January 2011
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Ok just getting my head around the way the margins etc work on deals, here is an example:

deposit factor is 25%

minimum guaranteed stop distance is 30%

so does this mean £250.00 in your account would cover a maximum of a £1000.00 per point position? and if you really mucked it up you would be stopped out and have to stump up £30,000.00 (30% under your max leverage of £1000.00)?

Im sure im very wrong so please do correct me.

Oh and even though im about to google it, while i have you what is a slippage factor?

I think i may stick to normal share trading, the tax man would appreciate it anyway!

deevlash

10,442 posts

267 months

Tuesday 25th January 2011
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shout DJC!

Xeno

304 posts

211 months

Tuesday 25th January 2011
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No. As soon as you hit the £250 in your account, IG will margin call you! smile

DomBertone

Original Poster:

121 posts

194 months

Wednesday 26th January 2011
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wow, well after a good few hours reading im still not sure 100%, other than knowing my initial assumption above was very wrong!

now i have it as to play £5 a point you need to deposit £125 but how you implement the guaranteed stop distance i am still unsure.

DomBertone

Original Poster:

121 posts

194 months

Wednesday 26th January 2011
quotequote all
oooooooooooooh do i just deposit 30% instead, so for £5 a point its £150.00 in the account and that enables me the option to use a guaranteed stop?

Xeno

304 posts

211 months

Wednesday 26th January 2011
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It depends on the value of the underlying share. £5 a point on something like Apple is going to take some *serious* money in your account smile

matsmith

1,166 posts

239 months

Thursday 27th January 2011
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Dom, what are you betting on?

I'm not being rude, but you should not take a leveraged position without at least understanding what it is first. Tell us what you are looking at and we can be of more help to you.

limpsfield

6,677 posts

283 months

Thursday 27th January 2011
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DomBertone said:
Ok just getting my head around the way the margins etc work on deals, here is an example:

deposit factor is 25%

minimum guaranteed stop distance is 30%

so does this mean £250.00 in your account would cover a maximum of a £1000.00 per point position? and if you really mucked it up you would be stopped out and have to stump up £30,000.00 (30% under your max leverage of £1000.00)?

Im sure im very wrong so please do correct me.

Oh and even though im about to google it, while i have you what is a slippage factor?

I think i may stick to normal share trading, the tax man would appreciate it anyway!
If you email helpdesk@igindex.co.uk they are very helpful - I would suggest this is the more sensible option for getting the definitive answer.

onefiatpunto

364 posts

204 months

Thursday 27th January 2011
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If its stocks and shares it may worth be reading

The Naked Trader's Guide to Spread Betting: A guide to making money from shares in up or down markets

DomBertone

Original Poster:

121 posts

194 months

Thursday 27th January 2011
quotequote all
Hi people,

Just to say i have spoken to ig index and have finally got what the lingo is all about now, its so different in method to the usual buy/sell of a share dealing account it just took a bit of getting used to, thanks for the help!

Oh Mat, appreciate what you are saying, in a nutshell i am heavily invested in a particular stock and wanted to increase my exposure to it without selling my other stocks, so spreadbetting seemed the best option to do this, i just wanted to be certain that with this being such a leveraged product i knew the position i took on it would be affordable to me in a worst case scenario.

Rickeh

246 posts

245 months

Tuesday 25th September 2012
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IG Index staff have been very helpful when i've spoken to them (same guy i've spoken to three times now). Still not sure if I prefer Capital Spreads though. There's much less of a choice but it's a bit more user friendly and as far as I know you get options like trailing stops automatically, whereas it seems at IG you need to upgrade your account to do this. Charting/graphs are miles better on IG though.

Anyway good luck and be careful. You can very quickly lose a lot of money spread betting.

Care to tell us what the stock is that you're wanting to get more exposure to? tongue out