Spread betting question please.

I'm learning as much as i can on Forex, i have looked at market activity times and entry points for long term trading. but i am confused with the IGindex spreads.

i will use USD/CHF for my example.

The stops and limits min is 20points/pips?

So if i buy at 1000 and the market moves against me and reaches 980 and i am stopped out loosing £20 @ £1 a pip?

What is confusing me is the spread, on their website it says the USD/CHF min spread of 2 and typical spread of 4

so if i buy at 1000 i will already be running at a loss but how much of a loss @ £1 per point?

infinitym4ge said:

I'm learning as much as i can on Forex, i have looked at market activity times and entry points for long term trading. but i am confused with the IGindex spreads.

i will use USD/CHF for my example.

The stops and limits min is 20points/pips?

So if i buy at 1000 and the market moves against me and reaches 980 and i am stopped out loosing £20 @ £1 a pip?

What is confusing me is the spread, on their website it says the USD/CHF min spread of 2 and typical spread of 4

so if i buy at 1000 i will already be running at a loss but how much of a loss @ £1 per point?

Click to expand...

IG Index is very easy to use - from the questions you ask I suggest you use the demo account not real money.

If you set a stop of 20 at £1 per point and the market goes against you then you lose £20 - however you can close the trade at any time. Don't have to wait to be stopped out.

Spread on USD/CHF during a normal trading day is 4. If you buy at 1000 the cost of the trade is 4 points - you are in an immediate loss situation assuming the market remains static.

If you are looking at long term trading the spreads don't really matter as presumably you looking for large gains. 4 points here and there at £1 a point is irrelevant really.

Dont trade USD/CHF with 20 point stop for long term trading it will blow you out first day. Minimum 100 maybe 200.

Good luck.

I think you get a default stop. If you want to increase this you put up more margin.