Where to get the best leverage/credit? Currently with IG.

[Archaic]

Hi,

I recently started spread betting with IG after reading upon it for a good few months. I was under the impression that I'd only have to put a small % of the margin required on the bets, but under IG if I do something like £100 a point for a stock I need to have around £6000 in margin.. which tbh is pretty much the same as just buying the stock itself.

My strategy is one of extreme caution, I go with stocks that are highly likely to go up in the short to medium term (a week to a month), and put regular stop losses.
My issue is though most of my capital is on my regular share trading accounts, and was looking to use spread betting leverage/capital to increase that. Have I got the concept wrong, or is there a way to reduce margin/get more leverage with IG? Or are there any other spread betting firms where I could go with £100 a point without having to put 6k down? It's a bit frustrating seeing a couple of my stocks go up several points, and only being able to profit like £5 a point from them because I don't really have a spare £10k to put down as margin.

 

[brewski1984]

If you're only a few months in then leverage is not your friend and neither is watching a market go up 100 points and having the feeling you've missed out on millions of bucks.

You can get higher leverage elsewhere but that's only because they want more of your money!

 

[Archaic]

If you're only a few months in then leverage is not your friend and neither is watching a market go up 100 points and having the feeling you've missed out on millions of bucks.

You can get higher leverage elsewhere but that's only because they want more of your money!

I've been stock trading for a good few years now, I know how to limit loss effectively so I'm not worried about squandering everything away. The stocks I have in mind I've heavily researched so I'm reasonably happy they'll do well in the medium term.

Which firms do higher leverage? I've read you need to upgrade your account with IG to do so, but can't see it so might just call them up and see what they say. Frustrating though as the upside on a couple of my stocks are near to where I think they'll stop, so ideally would have some form of leverage on the few I do have left.

 

[brewski1984]

I apologize for assuming you were a complete noob, I would ring IG first if I was you and then go from there.

 

[0007]

Hi,

I recently started spread betting with IG after reading upon it for a good few months. I was under the impression that I'd only have to put a small % of the margin required on the bets, but under IG if I do something like £100 a point for a stock I need to have around £6000 in margin.. which tbh is pretty much the same as just buying the stock itself.

My strategy is one of extreme caution, I go with stocks that are highly likely to go up in the short to medium term (a week to a month), and put regular stop losses.
My issue is though most of my capital is on my regular share trading accounts, and was looking to use spread betting leverage/capital to increase that. Have I got the concept wrong, or is there a way to reduce margin/get more leverage with IG? Or are there any other spread betting firms where I could go with £100 a point without having to put 6k down? It's a bit frustrating seeing a couple of my stocks go up several points, and only being able to profit like £5 a point from them because I don't really have a spare £10k to put down as margin.

You want to bet £100 a point but can't lay your hands on a spare £6k ? Perhaps I'm just old fashioned ......................

 

[Jason101]

You want to bet £100 a point but can't lay your hands on a spare £6k ? Perhaps I'm just old fashioned ......................

Lol.

I recon you if you pay for guaranteed stops you would get all the margin you want.

 

[Stargunner]

Spreadex offer credit lines.
To be frank though, you shouldn't be fully margined on a trading account.
IG will soon have stockbroking. If you move your share dealing over to them, you can use your existing shares as collateral for your derivatives.

I'm telling you all this, but you should seriously consider your use of leverage, professionals never fully leverage an account, and still go bankrupt overnight.

 

[neil324]

Wonga, pay it back in a couple of hours with that risk exposure.

 

[Archaic]

Spreadex offer credit lines.
To be frank though, you shouldn't be fully margined on a trading account.
IG will soon have stockbroking. If you move your share dealing over to them, you can use your existing shares as collateral for your derivatives.

I'm telling you all this, but you should seriously consider your use of leverage, professionals never fully leverage an account, and still go bankrupt overnight.

Signed up with spreadex, see how they go. That's actually a really good shout on IG, will see if that's doable. That should be a good £10k of margin depending.

Yeah I hear you on using too much leverage. I've done a few lower trades already, but I think I'd go for lower amounts a point, say £20 a point, and go for the mid to longer term view that I use currently in my stocks. Ones where, even if goes down in the short term I'm generally happy they'll go up in the 1-2 months range, so any short term events wouldn't make much of a difference.

Wonga, pay it back in a couple of hours with that risk exposure.

Problem with them is they give you £400 and I'd need it for 10-20 days, I'd be looking at paying £500 back. £400 is okay but I doubt it'd be enough margin to make £100+ back.

 

[neil324]

Problem with them is they give you £400 and I'd need it for 10-20 days, I'd be looking at paying £500 back. £400 is okay but I doubt it'd be enough margin to make £100+ back.

LOL, It was meant as humour.

 

[CityMasterTrader]

Hi,

I recently started spread betting with IG after reading upon it for a good few months. I was under the impression that I'd only have to put a small % of the margin required on the bets, but under IG if I do something like £100 a point for a stock I need to have around £6000 in margin.. which tbh is pretty much the same as just buying the stock itself.

My strategy is one of extreme caution, I go with stocks that are highly likely to go up in the short to medium term (a week to a month), and put regular stop losses.
My issue is though most of my capital is on my regular share trading accounts, and was looking to use spread betting leverage/capital to increase that. Have I got the concept wrong, or is there a way to reduce margin/get more leverage with IG? Or are there any other spread betting firms where I could go with £100 a point without having to put 6k down? It's a bit frustrating seeing a couple of my stocks go up several points, and only being able to profit like £5 a point from them because I don't really have a spare £10k to put down as margin.

The higher margins are usually for more illiquid stocks. Otherwise the margin goes as low as 5%.
Personally I think any less than this you're really trading dangerously as you can easily get into a margin call.