Ig Share Discussion Threads

[toyin] 02/8/2017 08:46

caterham

It isn't as simple as that, the spread can change every second it depends on the underlying market, take my e.g. JAY can have a spread of 8% or .6%. Make sure you know the spread and don't buy when its too wide.

P.S. It sounds like you might be putting your stops to close, market makers always hit round numbers. 599 is too close to 600.

All the best

[caterham_ollie] 02/8/2017 08:31

Thank you everybody and sorry for straying the thread away from IGG. This has happened to me twice before on stops that were no where near the lowest trade of the day. I only deal in equities, no SB or CFD's etc. I know they are going to say it was because of the spread but I will drill deeper for a better understanding thanks to your help. I'll let you know. Where can you view the opening spread after the fact?

[mip55] 02/8/2017 08:21

Let's wait and see if caterham comes back shall we? But I'd be very surprised if the firm said anything other than the spread at 8am was sufficient to trigger your stop loss

[toyin] 02/8/2017 08:07

mip55

Sometimes the spread bet firm does buy shares, e.g. I bought some JAY on a spread bet and it went straight through on Level 2, it depends on whether the said spread bet company has that stock hedged sufficiently. Usually on smaller more illiquid shares it doesn't so the computer is programmed to buy the underlying market. Now if the spread was 595-621.5 and a trade went through at 601.9 and his stop is 599 the position should not be closed because the trade did not hit 599 or lower. Caveat, depending on what quarter contract he has used will change things so that could be the answer. As I said in first post, he should call the company and ask.

All the best

[shares and stock markets] 01/8/2017 23:00

Just speak with your sb firm on the phone they will explain their T's and C's in regards to stops and when they are triggered

[mip55] 01/8/2017 22:12

Apologies that should read 621.5 for the upper spread

[mip55] 01/8/2017 22:03

Let me confess I' m confused. I understood that when I made a spread bet I was betting on the price of a share going up or down with a bookie. There is no buying or selling of shares, no paper, no trading. Now it seems that the bookie has to wait to see if some mythical trade takes place - somewhere, within the company, outside the company, somewhere in the world before they can trigger a stop loss?toyin - 01 Aug 2017 - 12:33 - 1521 of 1534 - 0Hi caterhamThere was a wide spread at 8:00.38 595-621.5 and a trade went through at 601.9. But I would definitely call your broker and ask them to look into it.I think that explains things adequately.....the bookie had a spread of 595 - 601.9 hence the stop loss was triggered. Please if you disagree with this help me out and explain where this 'trade' has to take place before the computer can use its algorithms to trigger a stop loss?

[toyin] 01/8/2017 16:55

mip55

That book was written 10 years ago things have changed, e.g. when you buy shares now you don't go down to your bank hand over some cash and come home with a paper certificate.

All the best

[mip55] 01/8/2017 16:41

Naked Trader's guide to spread betting. P64....."the 8am stop out". Useful reading.One of the quotes " ....No -one could have traded it"

[volsung] 01/8/2017 16:36

Sad, lonely and pathetic is what I call someone who allows their dog to molest sheep. I would go so far as to commend those farmers who, as a last resort, fire at stray dogs. I cannot abide it. That's all I have to say at the moment. I welcome any reasonable suggestions as to how UK Plc treats it stray dogs.

[gbh2] 01/8/2017 16:20

I'm only considering Spread Bets and I was told by a rep of IG (some years ago) that a market trade was required at or below the stop to action a close.

[toyin] 01/8/2017 16:09

mip55

I think you will find a sb stop has to be triggered by an actual trade in the underlying market same as a stop on actual purchased shares.

All the best

[shares and stock markets] 01/8/2017 16:09

Indeed and the wide spread at 8am would be enough to trigger the stop but still worth contacting the broker/spread firm for clarification and if they come back with 'sorry it's in our T's and C's' then a harsh lesson learned

[mip55] 01/8/2017 16:00

No trades need to be completed if we're talking spread betting. After all you aren't trading in the sense of buying and selling shares, simply betting against the bookies and whatever prices they have from the market.

[shares and stock markets] 01/8/2017 15:59

It also depends on what instruments you are trading - are you spreadbetting/CFD's or straight equities?

[gbh2] 01/8/2017 15:55

My understanding is that there had to have been a trade at the price.

[shares and stock markets] 01/8/2017 15:44

I've been in since 535p after I hesitated at the first collapse in price down to 450-460p - not sure where price is going but management are up to the task of countering any rule changes that seek to curb CFD trading

[mip55] 01/8/2017 15:27

The dreaded 8am stop out. The Naked Trader cites one of his own experiences where he remonstrated with his broker that he was stopped out on a trade that was never actually tradable but the response was 'that was...for about 60 seconds ...the sell price for the market' . their computer matched that price to the NT's stop loss which then sold it. A harsh lesson learned that you have to figure in a lower than normal stop to prevent untradable spreads at market open...believe me I've been victim to it too!

[gbh2] 01/8/2017 14:44

Worth challenging because there's supposed to be a trade at the price so there should have been a sell at or below 599p imo.

[caterham_ollie] 01/8/2017 12:59

Thanks toyin - that'll explain it!

[toyin] 01/8/2017 12:33

Hi caterham

There was a wide spread at 8:00.38 595-621.5 and a trade went through at 601.9. But I would definitely call your broker and ask them to look into it.

All the best

[caterham_ollie] 01/8/2017 12:17

Can anybody explain why my stop was hit at 599 at 08:00 if the low so far is 619.5? Any help is appreciated.

[cinquepercento] 01/8/2017 09:48

Manics: We could still see 600 or lower but we will have to wait a few day to see if this share can make up it's mind.

[gbh2] 01/8/2017 09:14

Looked to me like a sell or buy at a pre agreed price this morning.

[manics] 01/8/2017 08:56

Yes, and it climbs when I want to buy! I'm looking for closer to the 200SMA, which is currently a sniff under 600p, though I'd pay a few pips more than that.

Worth noting that if current price trends continue then the 50SMA is about to cross above the 200SMA signalling potential for further price appreciation in the immediate term.

GLA.