IG market manipulators

fptrader

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Hands up those that think IG manipultes the market in the last minute of a binary when its not possible to trade.

I have seen so many times when the market has sat for 19 mins making steady moves only to see some wild moves in the last minute. Too many times for it to be coincidence.
It seems to be more pronounced on the hourly boundary when theres probably more at stake and almost always true at Midday when lots of other bets are expiring.

Also see wild moves in the underlying 2-3 mins before the close. This has the result in stopping people out of their positions and lots of turnover for IG. turnover == profit.

I asked the question to the binaries chief who said that they don,t but qualified that by saying he wouldn,t admit it if they did. but did say that the result of a binary could make a huge difference as to whether IG made a profit on a market.

I figure it as this. I estimate 200K bet at least per 20 min binary. If the up-down ratio of bets is skewed to say 80/20 it would be in IGs interest to make sure it finished down. How much would it cost to do it ? I reckon you could move the market a couple of points or more by selling 100-200 futures contracts. They could even make a profit on those contracts as well if the buy them back carefully.

If I,m right then a strategy would be to buy below 20 (sell above 80) 2 mins before expiry. BUT my backtesting shows this to be unprofitable - a paradox. Mabe I should ask that piper bloke he has all the answers.
 
IG wouldn't (if they have any sense) skew their book like you suggest...

How do they have a choice - theoretically everyone could bet up. How would their book not be skewed then ? The buy sell quote algorithm is based on the underlying price and to a very small extent on the weight of money in either direction. IGs book could be hedged in the underlying market but I suspect not. They make their money on the spread and statisticly there will be as much money on up as down most of the time. I.m taking into account the weighting provided by the traded price

So inevitably there will be markets that dont have this - dont care if it closes up or down (from IG viewpoint) but equally there will be those where it does make a big difference to IG. So they move the market the way they want. As in my previous calculation it doesn,t cost much to move the market a few points. I moved FSTE 11 points myself in days gone by. Just watch the 20 minute binaries for 3 hours in the morning. And the turnarounds with 1-2 mins left are amazing.
 
I,m sure most people know what you,re talking about but could you enlighten me

Basically what you'd suggest IG were doing. They'd buy (or sell) a stock to move the ticker a bit and bust out punters (who were "trading" on very thin margins)

If you want to read about bucket shops (and/or just want a bloody good book) get reminiscences of a stock operator by livermore...
 
They don't take bets if it gets significantly skewed...

Of course they take bets. Have you ever seen them close a market ?. No.
and I,m not talking delays manuals etc. IG may be a lot of things but they dont close the binary markets.


I,ve seen City Index close a market though.
 
Surely if they skewed it one way - then the reward to risk of things going the other way becomes very favourable and you can trade it for a potential large reward for very little risk.


It works both ways....
 
Of course they take bets. Have you ever seen them close a market ?. No.
and I,m not talking delays manuals etc. IG may be a lot of things but they dont close the binary markets.


I,ve seen City Index close a market though.

Ring up IG and ask to put a million pounds a point on an out of the money binary then, see what they say :LOL:
 
Surely if they skewed it one way - then the reward to risk of things going the other way becomes very favourable and you can trade it for a potential large reward for very little risk.


It works both ways....

What a great idea please let me know the result of this strategy. I,ll tell you it doesnt work. The manipulation is a little more sophisticated than I,ve suggested previously , but never the less manipulation. Rather than trade that way my backtesting based on 600 samples indicates that 94 on a buy / 6 on a sell is the best exit number rather than wait until expiry or just before and risk getting shafted.
 
Ring up IG and ask to put a million pounds a point on an out of the money binary then, see what they say :LOL:

I note that you are a veteran member here and also a T2W adviser whatever that means, however without meaning to be disrespectful the posts you have made in this thread have just been plain stupid.

Don,t you even know that binaries can,t be traded on the phone?

Secondly IG will always accept a bet up to your ageed deposit level. End of.
 
I,m sure most people know what you,re talking about but could you enlighten me

What follows is an extract from Reminiscences of a stock operator, when he says 'old days' he is refering to the 1800s! (ie the 19th century)


"In the old days whenever a bucket shop found itself loaded with too many bulls on a certain stock it was a common practice to get some broker to wash down the price of that particular stock far enough to wipe out all the customers that were long of it. This seldom cost the bucket shop more than a couple of points on a few hundred shares, and they made thousands of dollars.
That was what the Cosmopolitan did to get me and Henry Williams and the other Sugar shorts. Their brokers in New York ran up the price to 108. Of course it fell right back, but Henry and a lot of others were wiped out. Whenever there was an unexplained sharp drop which was followed by instant recovery, the newspapers in those days used to call it a bucket-shop drive."

A hundred and fifty years later and the bucket shops are probably still up to their same old tricks:

"Wall Street never changes.The pockets change, the suckers change, the stocks change, but Wall Street never changes because human nature never changes .. !!"
 
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I note that you are a veteran member here and also a T2W adviser whatever that means, however without meaning to be disrespectful the posts you have made in this thread have just been plain stupid.

Don,t you even know that binaries can,t be traded on the phone?

Secondly IG will always accept a bet up to your ageed deposit level. End of.

I know people who've had bets for as little as a hundred quid a point on binaries rejected...

Would be common sense on IG's part really!

By the way I suspect two hundred grand staked on a typical hourly binary is out by a factor of ten, and IG's typical exposure is probably only a couple of grand - but I'll be happy to stand corrected on this.
 
They cant do it at the dow ,it is a risky thing to do they will be stupid if they did it , maybe they do it sometimes at the Ftse only at midday when the ftse not moving that much , maybe . Anyway binarybetting is a win/win game for them if somebody here made huge profits there is many punters lost alot at binaries dont forget that they make money by spread 2 .
 
When he said 'as little as 100 quid a point' he was being slightly facetious as you said any bet would be accepted as long as you can cover it :)

Sarcasm is a bit pointless over the internet, you're both using it and it's hard to catch!
 
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