IG Index/Binary Bet Rejections

Hi Mark

I think their decision would be based on monetary terms. However, while it was a great week for me, I guess that for some higher stake operators the level of my profit would not be exceptional.
I'm still managing to make my "normal" level of profit this week as manual acceptance is not being applied to the majority of my orders.

By the way, are you trading the binaries?
I remember your interest in them about a year ago.
I've turned professional so to speak!

The majority of my bets are of a short duration . . . usually minutes rather than hours or days.

Glad you managed to do it full time now - I was trading the 5 min binaries about a year ago but I had a part time contract in my job then so lots of time. I'm working on a full time contract since Jan this year so cant really trade at the moment - but if I can reduce to 4 day week I will be back in there again

IG have started delaying me closing range bets just prior to the Dow close.
Strange, as I wasn't that successful in this area.
I've now ceased betting into the close and so IG have inadvertently prevented me from incurring losses!!!

I know a little bit about binary bets and how they work, as i've been the other side of the bet before. These companies have the opportunity change the volatility, and if they feel the volatility at the time was incorrect giving a weak price, they will reject the price, then change the volatility, which will obviously skew the price against you.

Conditions are becoming increasingly difficult with IG.
Some of my orders for as little as £2/pt are now subject to delay!
Unbelievable. IG made £10m+ from binaries in its last financial year.
Scrooge comes to mind!

I would happily have recommended IG previously as I think its practices are, on the whole, fair.
However, now I would have reservations.
IG binaries have certain features built in to the quote which are sufficient for them to consistently profit by. The obvious example is the spread. I accept this and other "features" as the cost of trading.
What I think is unfair is the following feature of IG's manual order execution.
Where an order is delayed and the price moves away from the order; the order will likely be accepted at the original price and not the better price. Price improvement is not applied.
For example, order placed for binary to finish up at 73. Target profit 27pts.
Order delayed. Price falls to 66 to finish up. Order accepted at 73.
Conversely, where the price moves towards the binary goal the order is rejected with "price is no longer valid". I.e. order placed for binary to finish up at 73. Order delayed. Price moves to 80. Order rejected as price no longer valid.
This, in my book is plain unfair.

Either IG should reject the order in both instances with "price is no longer valid" or accept the order; in the first scenario at a price of 66 and the second at 80.

Comments anyone?

You say they are executing orders manually! - When I was trading last year they seemed to go through so quickly that they cant have been manual and Im sure I got 'price improvement' on a number of times. Do you think things have changed?

I been doing binaries since 2003.

Your order either gets filled instantly

Or if there is a delay then

If the delay is longer than 30 seconds chances are your order has gone to a human dealer, this is quite rare.

If the delay is between 5 seconds and 30 seconds it most likely the computer server holding your order, checking the price and possibly rejecting and then requoting the price/volaility of the binary.

I think orders are more likely to get delayed if the spread bet firms order book for that binary is relatively empty. An active book already has punter order flow priced in.

Also if you are very profitable at binaries your cards will be marked and your orders will have a much higher chance of being delayed compared to when you first started binaries.