Can someone please explain IG's limits?

[chris-nz]

I'm a beginner, learning the mechanics of CFD trading on an IG demo account.

When I bought the South Africa 40 index above, I specified a limit at 52090. I was buying at current price (not market price) so I assumed this was a sell limit; there didn't seem much point having a buy limit if I was buying at current price.

Assuming it is a sell limit, I can't figure out what's going on here. It's now got a sell price of 52177 and a buy price of 52195 so the limit should have been triggered by now?

I've seen the same behaviour across a number of other positions too.

 

[chris-nz]

I've been watching it some more and some of my limits have triggered. I have a theory.

So if I've got a long position and the price moves above my limit but doesn't hit the exact limit, it won't trigger the limit.

However if the price drops and hits the limit on the way down it will sell.

Am I right so far?

My question is: On the way down, does it have to hit the limit exactly or will it be sold at market price if the price drops back below the limit?

Just trying to figure out if I should be using limits for automated trading or adjusting manually periodically. I like the idea of limits as a failsafe but I need the behaviour to be consistent.

 

[cynic]

View attachment 88243

I'm a beginner, learning the mechanics of CFD trading on an IG demo account.

When I bought the South Africa 40 index above, I specified a limit at 52090. I was buying at current price (not market price) so I assumed this was a sell limit; there didn't seem much point having a buy limit if I was buying at current price.

Assuming it is a sell limit, I can't figure out what's going on here. It's now got a sell price of 52177 and a buy price of 52195 so the limit should have been triggered by now?

I've seen the same behaviour across a number of other positions too.

It appears that you will need to take IG's spread into account. In the case of IG quoting 52177sell,52195 buy, limit sell orders <= 52177, or limit buy orders >=52195, would typically execute. Your sell limit of 52190 would not have executed because IG was only offering to sell at 52177.

 

[chris-nz]

Thanks for your reply cynic. Makes sense what you said, but in the example screenshot I posted the "latest" (which is the sell price) @52125 is above the limit of 52090.

So wouldn't you expect the limit to be triggered?

 

[cynic]

Thanks for your reply cynic. Makes sense what you said, but in the example screenshot I posted the "latest" (which is the sell price) @52125 is above the limit of 52090.

So wouldn't you expect the limit to be triggered?

Apologies. I misread your post. Your understanding matches mine, namely, the sell limit of 52090 should normally have executed when their sell price first achieved or breached 52090.
Over the years, I have occasionally observed a delay in the platform updating trade records during periods of high activity. On those occasions, I generally made a quick call to their helpdesk, just to confirm that the trade had actually gone through, and also to ask when I could expect the platform to reflect the updates to the affected trade/s.

 

[chris-nz]

Thanks cynic, no worries just got our wires crossed.

IG do say that they don't guarantee limits, but failing to trigger all afternoon is a bit much. However this was on the demo platform, so maybe service is less reliable. Nevertheless I'll chase it up with them (now I know that I understand the concept properly)!

 

[MarketMatters]

Thanks cynic, no worries just got our wires crossed.

IG do say that they don't guarantee limits, but failing to trigger all afternoon is a bit much. However this was on the demo platform, so maybe service is less reliable. Nevertheless I'll chase it up with them (now I know that I understand the concept properly)!

Can't say I have had issues with the stop losses though I use IG infrequently now and favour FX and index trades through Pepperstone or Vantage.

Also note that if you start looking to use them for equity trades that they employ a custodian model which uses Citibank as the trustee and you are the beneficial owner. As a result you won't find your share holdings in the usual registries - computershare and link.

 

[HelloU]

Note: IG for equities do NOT have stops available as part of your order.