IG Index huge GBPUSD slippage > > >

I appreciate what you're saying (and apologise for such a short reply to a well-thought-out blue reply) but is it really worth the hassle in the long run?
 
It was in blue because I was in an expressive mood! :cheesy: Hope you liked the touch.

Is it really worth the hassle in the long run? In my opinion the answer is 'yes' for the reason I gave in my third point - if we never complained they'd slowly start ignoring all the terms and conditions. Complaining steals back some ground and keeps the firms honest.
 
Keep us updated i think they will correct the mistake
 
OR trade non guaranteed, you pay less spread, but you could be facing slippage some time in the future
 
if this relates to the 3 huge spikes that occured at between 13:30 and 2pm then it happened across a range of firms not just IG...fxcm experienced the same on the marektscope charts.

There was also huge spikes re. my yen currency pairs from approx 1pm, nice if you were already long (on 2 out of 4 :)), if you recall there was a typhoon in Taiwan which sent everything haywire on Asia currencies...

No conspiracy here...jog on...:)
 
Being a bit of a cynic where SB companies are involved, I tend to think this 'slippage' is simply a feature of the software used. In news release situations they make bumper profits by programming the system to fill at levels that can be justified by what happened in the underlying market.
With FX there's even more scope for designer slippage because there isn't a 'real' market, as such. As market makers, I suspect that they could fill all stops almost exactly if they had to, or wanted to, without taking much of a hit.

btw, another well known SB outfit took over two hours to fill my stop the other day. Beat that!
 
stevespray said:
It was in blue because I was in an expressive mood! :cheesy: Hope you liked the touch.

Is it really worth the hassle in the long run? In my opinion the answer is 'yes' for the reason I gave in my third point - if we never complained they'd slowly start ignoring all the terms and conditions. Complaining steals back some ground and keeps the firms honest.
Click to expand...

But if a company continues to play up then everyone would leave them for a rival.
 
Oh, I didn't think they were bad. (I was under the impression it was similar in quality to IG.)
 
stevespray said:
Complaining steals back some ground and keeps the firms honest.
Click to expand...

I like the use of the word HONEST. Spreadbetting firms are fundamentally dishonest in my experience. They can make up the rules as they go along (rather like banks helping themselves to your money).

Let's face it. Spreadbetting is not trading. There are enough shenanigans in the real market, without putting up with spreadbetting nonsense...
 
Hi, sorry I'm a bit late to this thread. Steve, you didn't mention what's the size of your friend's cable trade that got slipped 120 pips? I know IG has invested very heavily in their 'automated dealing' function, and £10 trades will just get filled by the system at the first tradable price. It is likely that they 'switch off' this automated system just before figure releases and put all stop orders on manual fill.

I totally agree with you the customer should push hard.
 
quick question for the benefit new spread betters like me if they Used guaranteed stop loss then this wouldn't have happened right?
 
FormulaOneFan said:
quick question for the benefit new spread betters like me if they Used guaranteed stop loss then this wouldn't have happened right?
Click to expand...

Precisely! I think it's mental to trade figure releases without guaranteed stop. You are aiming to catch a 'big move' so the extra few ticks you pay for guaranteed stop is well worth it. See what happens when one goes in with non-G stop! I'd rather trade with no stop at all to be honest. Stops are to help people to trade with better discipline but if you have what it takes, just 'pull the trigger' when your trade has gone against you. Of course, this is provided that you keep watching your trades and do not carry positions overnight.
 
Umbrella said:
Hi, sorry I'm a bit late to this thread. Steve, you didn't mention what's the size of your friend's cable trade that got slipped 120 pips? I know IG has invested very heavily in their 'automated dealing' function, and £10 trades will just get filled by the system at the first tradable price. It is likely that they 'switch off' this automated system just before figure releases and put all stop orders on manual fill.

I totally agree with you the customer should push hard.
Click to expand...

It was less than £10 per pip. I know someone else who was effectively in the same trade and they got stopped out at the correct level. How can they apply one set of rules to one client and a different set to another? Seems unfair at best.

Compliance are now looking into the matter. I can't see that there is much for them to look into since the T&Cs appear clear on this matter. The question is how many clients have been effected? One imagines that the compliance officer would be duty bound to ask dealing to go back over any trade which may have been effected? There's a lesson their for client services - if a client phones in with a valid complaint then don't let it go to complaince when the mistake is so obvious.

Steve.
 
Umbrella said:
Precisely! I think it's mental to trade figure releases without guaranteed stop. You are aiming to catch a 'big move' so the extra few ticks you pay for guaranteed stop is well worth it. See what happens when one goes in with non-G stop! I'd rather trade with no stop at all to be honest. Stops are to help people to trade with better discipline but if you have what it takes, just 'pull the trigger' when your trade has gone against you. Of course, this is provided that you keep watching your trades and do not carry positions overnight.
Click to expand...

It would be nice if the cost of a Guaranteed Stop was an "extra few ticks". It is not that simple. G.Stops with IG are very expensive, and there are considerable restrictions where you can place a G.Stop before trade entry, and futher restrictions about moving them once in a trade. IG really do have all angles covered. They love punters who think "well its only a few extra ticks".

This has considerable implications for risk management, and makes it even harder to be consistently profitable
 
If I take a wild guess at it, I think IG's FX desk hedged with long position on Cable on the day. If they had just run client's positions without hedging, it's gross to slip 120 pips on £10 stake. So I'm guessing the scenario could be, the trader hedged long, and didn't get out of the hedge quickly enough so ended up swallowing 120 pip slippage, which he then passed onto the customer with pleasure.

The bottom line is, if there had been a gap, then fair enough, 500 pip slippage for a 500 pip gap! but if there had been no gap, there shouldn't be slippage of that kind of scale. Wouldn't you agree?
 
If they normally have a 'self-hedged' overall balance on a market going into news, they probably just need to sit back while all the orders trigger. When the spikes stop and the dust settles, they'll have far fewer positions open but will have made a bumper profit.
 
Now Jack I wonder if you have run one of these SB books before!! If not then you should def consider sending your CV over to IG:)
 
You must log in or register to reply here.

Similar threads

D
IG Index getting slippery
2 3
Replies
45
Views
8K
The Leopard
The Leopard
A
Automating IG Index
Replies
1
Views
2K
markcurtis86
M
K
city index software manipulation on slippage
2
Replies
25
Views
5K
kwickwool
K
T
City Index stop loss hit with slippage
2
Replies
26
Views
5K
ZEN archer
ZEN archer
B
IG index takes a huge loss on Japanese aquisition
Replies
10
Views
3K
Black Swan
B
Top