Day Trading & Forex Forum

fibonacci

I feel like I have been scammed, but I would like the view of other senior traders and guys who have experience of markets.
I traded with IG INDEX on friday going long on the FTSE 100 March at 6181.. with a stop at 6151, the market closed at 6177 at 5:30 on friday. On monday Morning the opening was 6166 and low was 6163 and so far the high has been 6223.

I have been told I was stopped out on friday at 8:10(after the exchange was closed) according to inhouse quoting by IG INDEX as they quote a price 24 hours a day. They say that the low was 6151 right where my stop was and they do this on the basis of other markets that are trading at that time and the fluctuations taking place at that point. IS this a scam on their part ? they have inhouse information as to where all the stops and positions are held by their clients and can make a market in order to stop them out. Please comment????

Slapshot

In short the answer is NO, this is not a scam.

Be careful when trading the FSTE or other European markets because the price movements of the US markets will affect them accordingly throughout the US session >9.15pm UK time.

When trading with spread betting companies you're not trading the underlying index, you're trading IG's version of that market.

I suggest you do some research on the spread betting companies, their activities and other traders experiences of them. Lots of information can be found on this forum.

hope this helps

JTrader

I agree. If you are holding overnight beyond the close, you have to be prepared for such incidences.
Fib, i agree with you that this system has the potential to be abused by the SB - stop-hunting etc. But if you trade despite this, you are vulnerable to the potential abuse.
The alternative to trading real FTSE futures contracts, and continuing with the SB route is to only day trade (not hold open positions beyond the session close) or look at futuresbetting.com

Splitlink

It happened to me years ago with IG. I protested and got a call back explaining everything but I had been stopped and that was that.

Lots of horrible things can happen in the dead of night. I prefer to be out unless I already have a profit buffer.

Split

A Dashing Blade

Would have thought (just a guess) that they would benchmark the FTSE after hours with the Dow or (more probably) the S&P, 20.17 London time on Friday was the low of the S&P.

Hoggums

The problem here is that you failed to research properly how SB markets work. If the DJI plummets by 200 points and then recovers to previous levels - the FTSE cash quote will fall sharply also even though the market has closed.

When creating your strategy to trade the FTSE cash you need to take this into account - you can't rely on yahoo data for instance to formulate a plan.

__________________
Hoggums

-----------------------------------------------------------------------------
Outside of a dog, a book is a man's best friend,
inside of a dog, it's too dark to read. -- G Marx.

shadowninja

Ditto. I've seen enough positions vaguely in profit with a stop below b/e get stopped out to not open a position in the evening.

__________________


The markets can stay solvent longer than you can stay irrational.


Check out my blog if you're new to trading or skip the advice and obtain fame and riches beyond your wildest dreams the easy way but you might end up a bit like this.

2George

I echo everything that has been said. The electronic market needs a different type of stop involving more risk.
George