IG Index delayed Open PositionH

[hostman]

Hi,

I'm a new comer to this forum and SB generally. So go easy on me if my questions seem dense

I've opened up an IG Index account, tried a few bets with varying degrees of success. I got lucky with the price of heating oil taking a plunge on the back of sharp oil declines, after the news of China decreasing its fuel subsidies hit the news yesterday.

I set a SB this afternoon, a short position on a US stock, expecting it to fall rapidly after negative news on their earnings. The market opened, this particular share instantly dropped 71 points. But my order wasn't placed until a few minutes later, at which stage the price had stopped falling and had stabilised at its -71 level. I set the sell order at (for example) 100, but by the time the position was opened the system entered the SB at 29, so I end up gaining nothing at all from the falling stock. The stock did continue to fall later in the day, so I was able to profit by a few pence and closed the position. But by my calculations I should have ended up with £7 profit (10p per point, limited risk account), instead I only end up with 20p.

Is this sort of delay normal behaviour in a very active stock or is something amiss?

 

[Crap Buddist]

Ring IG index up (still open ?) now to hear it from the horses mouth. They wont bite and if they see they have made an error, they will usually make it, you ,right.

Possibles, stop order executed at market on open. (open gapped) But give IG a ring, they will talk you through it.

 

[Crap Buddist]

oh, and have a look maybe at using a stop limit order. This is what happens, ok the market punches through support ,suggesting change of sentiment? but instead of just running with a stop order(trade executed at market) with a stop limit order when the stop level is hit you can set a limit with it ,meaning you will get filled on that short only at the limit price you set.

EG. sell stop 120 limit 155, so your order will be triggered if the market A trades through 120 AND B then retraces to your specified limit (example 155) you will be short 155 and not the stop order 120..

Pro's you get filled on value on a pullback
cons, the market dont pullback! but hey who gives a **** plenty do.....
Cons watch for market reversal (V bottoming price actioning) off stop order lows. (if Suspected/noted (depending on experience etc) pull order)


Look into different orders, pro's cons, but make sure you keep an eye on any open orders, lengths etc........

 

[ae589]

oh, and have a look maybe at using a stop limit order

I don't think it's available on IGIndex is it?

 

[Crap Buddist]

Worth giving them a ring, they should do those orders to open......

 

[£10kLoser]

Sound Fair To Me....

But by my calculations I should have ended up with £7 profit (10p per point, limited risk account), instead I only end up with 20p.

Is this sort of delay normal behaviour in a very active stock or is something amiss?

You can't expect anyone to give you last nights close price when the market 'instantly drops 71 points'.

You say IG gave you the 'minus 71' price which sounds fair to me.

The delay doesn't matter if you got the first available price. If a market gaps open, you'll never get the pre-gap price unless there's a broker I don't know about.

 

[capitalspreads]

Imagine every single client said 'oh look' xyz company came out with bad news yesterday. Lets put an order to sell at last nights close because it is bound to open 10% lower and I can guarantee a profit.

The spread bet company would go bust in one day.

You cannot sell shares at last nights close through a broker so why would you imagine a spread bet company would permit you to make a bet at that level?

On the open in the States there are some five to six hundred stocks opening at various levels. It takes any spread betting company time to process orders on this scale to avoid putting through stupid trades on ridiculous opening spreads.

Simon

 

[ofurbaldur]

Look into the real cost of the spread on markets like crude and oil - can add up quicklly

Baldur