IG index? Any spreadbetters?

[DomBertone]

Ok just getting my head around the way the margins etc work on deals, here is an example:

deposit factor is 25%

minimum guaranteed stop distance is 30%

so does this mean £250.00 in your account would cover a maximum of a £1000.00 per point position? and if you really mucked it up you would be stopped out and have to stump up £30,000.00 (30% under your max leverage of £1000.00)?

Im sure im very wrong so please do correct me.

Oh and even though im about to google it, while i have you what is a slippage factor?

I think i may stick to normal share trading, the tax man would appreciate it anyway!

[deevlash]

DJC!

[Xeno]

No. As soon as you hit the £250 in your account, IG will margin call you!

[DomBertone]

wow, well after a good few hours reading im still not sure 100%, other than knowing my initial assumption above was very wrong!

now i have it as to play £5 a point you need to deposit £125 but how you implement the guaranteed stop distance i am still unsure.

[DomBertone]

oooooooooooooh do i just deposit 30% instead, so for £5 a point its £150.00 in the account and that enables me the option to use a guaranteed stop?

[Xeno]

It depends on the value of the underlying share. £5 a point on something like Apple is going to take some *serious* money in your account

[matsmith]

Dom, what are you betting on?

I'm not being rude, but you should not take a leveraged position without at least understanding what it is first. Tell us what you are looking at and we can be of more help to you.

[limpsfield]

DomBertone said:

Ok just getting my head around the way the margins etc work on deals, here is an example:

deposit factor is 25%

minimum guaranteed stop distance is 30%

so does this mean £250.00 in your account would cover a maximum of a £1000.00 per point position? and if you really mucked it up you would be stopped out and have to stump up £30,000.00 (30% under your max leverage of £1000.00)?

Im sure im very wrong so please do correct me.

Oh and even though im about to google it, while i have you what is a slippage factor?

I think i may stick to normal share trading, the tax man would appreciate it anyway!

If you email [e-mail] they are very helpful - I would suggest this is the more sensible option for getting the definitive answer.

[onefiatpunto]

If its stocks and shares it may worth be reading

The Naked Trader's Guide to Spread Betting: A guide to making money from shares in up or down markets

[DomBertone]

Hi people,

Just to say i have spoken to ig index and have finally got what the lingo is all about now, its so different in method to the usual buy/sell of a share dealing account it just took a bit of getting used to, thanks for the help!

Oh Mat, appreciate what you are saying, in a nutshell i am heavily invested in a particular stock and wanted to increase my exposure to it without selling my other stocks, so spreadbetting seemed the best option to do this, i just wanted to be certain that with this being such a leveraged product i knew the position i took on it would be affordable to me in a worst case scenario.

[Rickeh]

IG Index staff have been very helpful when i've spoken to them (same guy i've spoken to three times now). Still not sure if I prefer Capital Spreads though. There's much less of a choice but it's a bit more user friendly and as far as I know you get options like trailing stops automatically, whereas it seems at IG you need to upgrade your account to do this. Charting/graphs are miles better on IG though.

Anyway good luck and be careful. You can very quickly lose a lot of money spread betting.

Care to tell us what the stock is that you're wanting to get more exposure to?