Spreadbetting - IG complaint

[Jack Hughes]

Yes I agree, I never close a position manually when a stop have failed to execute. However to his defense, the staggering amount might caused him to act in panic, wouldn't you close such a position?

Unless you just have far too much money to throw away, I wouldn't recommend using a spread bet for anything more than £10 per point on an index, and even then it's sensible to have at least a 'disaster stop' in place and the ability to hedge with another company if something goes wrong.

I think mr-put's best defence is that making a £200 per point FTSE bet, apparently with no stop, when the markets were in chaos, with virtually no margin, was obviously the action of someone who didn't know what he was doing. Particularly if he was a new client, IG must have some sort of responsibility for monitoring accounts?

 

[gle101]

Unless you just have far too much money to throw away, I wouldn't recommend using a spread bet for anything more than £10 per point on an index, and even then it's sensible to have at least a 'disaster stop' in place and the ability to hedge with another company if something goes wrong.

I think mr-put's best defence is that making a £200 per point FTSE bet, apparently with no stop, when the markets were in chaos, with virtually no margin, was obviously the action of someone who didn't know what he was doing. Particularly if he was a new client, IG must have some sort of responsibility for monitoring accounts?

Yes I agree, traders at times do not act normally, that is a fact we all know, and with a market in complete turmoil, other security protective systems must kick in to protect the inexperienced trader from total financial disaster. Especially if the position is not covered and secured by credit limit requirements.

 

[Nan]

nan - "After about 60 days or so IG writes of unpaid debts. Its written in the prospectus. Any recovery, therefore, is just a bonus for the credit department" - can you point me to where you found this info?[/QUOTE]

try this:

http://www.trade2win.com/boards/att...dbetting-api-access-ig_group_holdings_pro.pdf

 

[Nan]

nan - "After about 60 days or so IG writes of unpaid debts. Its written in the prospectus. Any recovery, therefore, is just a bonus for the credit department" - can you point me to where you found this info?

try this:

http://www.trade2win.com/boards/att...dbetting-api-access-ig_group_holdings_pro.pdf[/QUOTE]

Some Contents:

Bad and doubtful debts
The Group establishes a provision for bad and doubtful debts. Provision is made for 50 per cent of any debt
which has been outstanding for more than 30 days and for the full debt once it has been outstanding for
60 days, unless there are reasonable grounds for believing that the debt is recoverable in part or in whole, in
which case the provision is limited to the amount considered irrecoverable. In addition, any debts which are
identified prior to this as having doubtful recoverability are provided for to the extent that they are believed
irrecoverable. The determination of the recoverability or otherwise of debts requires the exercise of judgement
by the Group’s credit control staff and the Directors. Consideration is given to the previous payment history
and conduct of the client concerned, the client’s financial standing, the magnitude of the debt and any
discussion or correspondence that have taken place between the Group or its solicitors and the client. The
amount of bad and doubtful debts during the period under review has not been material.

Systems failures or delays could harm IG’s business
The Group’s operations are highly dependent on technology and advanced information systems. Its ability to
provide its clients with reliable, real-time access to its systems is fundamental to the success of the business.
Such dependency upon technology exposes IG to significant risk in the event that such technology or systems
experience any form of damage, interruption or failure. IG has disaster recovery procedures and policies in
place which are designed to allow the Group to continue trading in its core markets and a system testing

 

[mr_put]

"Please give correct day, and the time you went into the position of £200. Give time when you closed the position. I think you did the right thing closing the position, just ignoring it would have been even worse, considering the huge sums of money at stake. Were you logged out from IG,s account during the day?"

these bets were opened on 28th sep 2008: one at 16.37 automatically as a daily rollover at 5089, one at 23.25 manually at 5148.

they were both closed manually on 29th sep at 19.42 at 4654...after rolling over automatically at 16.48 at 4819 - a mere 60k loss! is there a defence in that? surely the bets shouldn't have been re-opened, manually or automatically, given my account parameters?

i was logged in via the mobile phone application during the day but i didn't have a chance to monitor my positions as i was having a completely hectic day - sods law!

 

[mr_put]

nan - as has been pointed out on here in another post, i think that's just an accounting policy relating to the treatment of debt, it doesn't reflect how they will pursue the repayment of debt.

 

[mr_put]

anyone know where i can get opening and closing prices for the real ftse 100 and IG's ftse 100 on 28th and 29th sep 2008? most regular charts on the internet only give a year's history.

 

[gle101]

"Please give correct day, and the time you went into the position of £200. Give time when you closed the position. I think you did the right thing closing the position, just ignoring it would have been even worse, considering the huge sums of money at stake. Were you logged out from IG,s account during the day?"

these bets were opened on 28th sep 2008: one at 16.37 automatically as a daily rollover at 5089, one at 23.25 manually at 5148.

they were both closed manually on 29th sep at 19.42 at 4654...after rolling over automatically at 16.48 at 4819 - a mere 60k loss! is there a defence in that? surely the bets shouldn't have been re-opened, manually or automatically, given my account parameters?

i was logged in via the mobile phone application during the day but i didn't have a chance to monitor my positions as i was having a completely hectic day - sods law!

Thanks a lot.

 

[tar]

"Please give correct day, and the time you went into the position of £200. Give time when you closed the position. I think you did the right thing closing the position, just ignoring it would have been even worse, considering the huge sums of money at stake. Were you logged out from IG,s account during the day?"

these bets were opened on 28th sep 2008: one at 16.37 automatically as a daily rollover at 5089, one at 23.25 manually at 5148.

they were both closed manually on 29th sep at 19.42 at 4654...after rolling over automatically at 16.48 at 4819 - a mere 60k loss! is there a defence in that? surely the bets shouldn't have been re-opened, manually or automatically, given my account parameters?

i was logged in via the mobile phone application during the day but i didn't have a chance to monitor my positions as i was having a completely hectic day - sods law!

please correct your information 28th is sunday there is no rollover at 16:37 markets r closed, u mean at friday 26th ?

 

[Jack Hughes]

anyone know where i can get opening and closing prices for the real ftse 100 and IG's ftse 100 on 28th and 29th sep 2008? most regular charts on the internet only give a year's history.

I don't think that will help you much, because all spread bet providers always stress that you're not trading the real market, so their figures are the ones that matter. Having said that, one of their favourite fob-offs is to claim that the charts aren't necessarily accurate!

 

[tar]

they were both closed manually on 29th sep at 19.42 at 4654...after rolling over automatically at 16.48 at 4819 - a mere 60k loss! is there a defence in that? surely the bets shouldn't have been re-opened, manually or automatically, given my account parameters?

If this is true i think they cant charge u more than the 60 k loss ( worst case scenario ) ...

 

[tar]

nan - as has been pointed out on here in another post, i think that's just an accounting policy relating to the treatment of debt, it doesn't reflect how they will pursue the repayment of debt.

forget about it , IG rollover the Daily Ftse based on the FTSE 100 official closing print .

 

[tar]

i was logged in via the mobile phone application during the day but i didn't have a chance to monitor my positions as i was having a completely hectic day - sods law!

This is against u if they can prove it ...

 

[tar]

anyone know where i can get opening and closing prices for the real ftse 100 and IG's ftse 100 on 28th and 29th sep 2008? most regular charts on the internet only give a year's history.

http://www.prorealtime.com/en/

end of day data is for free but u have to sign up , it goes back to Jan 2008 for the Ftse

 

[tar]

your bet was on Ftse100 daily or Ftse 100 daily future ?

 

[mr_put]

"please correct your information 28th is sunday there is no rollover at 16:37 markets r closed, u mean at friday 26th ?" - yes, sorry, one of the bets was a daily rollover from fri 26th sep 2008, opened automatically on 28th, while the other i opened manually on 28th.

"I don't think that will help you much, because all spread bet providers always stress that you're not trading the real market, so their figures are the ones that matter" - IG's indexes have to open and close against a pre-defined criteria, in the case of their ftse index it is against the official quoted ftse100. but IG's prices can diverge wildly from the underlying index during the day though.

"If this is true i think they cant charge u more than the 60 k loss ( worst case scenario )" - that's what i'm thinking. it's another defensive point and i'd not seen it before in 18 months - that's exactly what i was hoping to get from this forum, along with all the abuse, new thoughts from different people, and me looking at things again from a different angle cheers guys!

 

[mr_put]

i was betting on ftse100 daily.

just because i was logged in via a mobile phone application (which other providers don't allow, and it's not allowed in the gambling industry as it's "too easy"), it doesn't mean i can monitor my bets - i have to go to the toilets to do that, and there's only so much you can blame on a vindaloo for spending hours in the toilet every day!

 

[tar]

i was betting on ftse100 daily.

just because i was logged in via a mobile phone application (which other providers don't allow, and it's not allowed in the gambling industry as it's "too easy"), it doesn't mean i can monitor my bets - i have to go to the toilets to do that, and there's only so much you can blame on a vindaloo for spending hours in the toilet every day!

this is irrelevant , u was logged in period , for the court there is no proof u wasnt monitoring your bet

 

[tar]

"I don't think that will help you much, because all spread bet providers always stress that you're not trading the real market, so their figures are the ones that matter" - IG's indexes have to open and close against a pre-defined criteria, in the case of their ftse index it is against the official quoted ftse100. but IG's prices can diverge wildly from the underlying index during the day though.

!

They will not do this , i hope they do it so we can take advantage of " out of whack " prices !

 

[tar]

i c in this chart the close for the Ftse100 @ 26th sep 2008 was 5102 not 5089 ...