IGindex taking me to Bankruptcy

meanreversion said:
I think there's a line between traders who have lost money through poor or ill-disciplined trading and those who've been genuinely f-cked over by their brokers.

It's all too easy to blame the broker for losing trades. That's not to say that they don't do it, of course, but I suspect that it's a crutch to point the finger elsewhere.

For those people who've suffered big slippage - how do you know you wouldn't have been treated the same way elsewhere? You don't. However, my guess would be that if your broker is a market maker (as opposed to DMA), then over time they will extract money from you in this way.

But hey - spreadbetting is tax free - it's not all bad! And if you trade with IG enough they'll take you to Wimbledon.
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I absolutely 100% agree with what you're saying and I also think it's part of the business and comes with the territory but I also refuse to entertain anyone who argues against the belief that ALL SB FIRMS take part in some dodgy practice in regards to slipping, bad fills, stop running etc.

I can't think of one for profit (or even charitable lol) organisation that won't tweak in it's favour. From retail (pricing) to services (rip offs) it's the way of the world and SB is no different.
 
scose-no-doubt said:
I absolutely 100% agree with what you're saying and I also think it's part of the business and comes with the territory but I also refuse to entertain anyone who argues against the belief that ALL SB FIRMS take part in some dodgy practice in regards to slipping, bad fills, stop running etc.
I can't think of one for profit (or even charitable lol) organisation that won't tweak in it's favour. From retail (pricing) to services (rip offs) it's the way of the world and SB is no different.
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Eh? Who does? Can't see anyone on the thread arguing versus that me old China, but so what? It's just not cricket? Pfffttt!!

tarantino-line-o-rama-20090819041803501.jpg
 
Oh maybe I got a bit hot below the collar. I'm tired today. Argument retracted.
I hypothesize that IG makes a mark up on slippage it suffers itself.
 
scose-no-doubt said:
Oh maybe I got a bit hot below the collar. I'm tired today. Argument retracted.
I hypothesize that IG makes a mark up on slippage it suffers itself.
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The SB firms are not NDD/DMA...(which you could argue is an over-rated concept anyhow) They are what they are. Wanna play forex with 'em? Go for it, but only swing and or position with them..when you have; a proven record, know what you're doing and need to use them for tax reasons.
 
scose-no-doubt said:
so gammajammer who is an institutional market maker talks about stop running and MR who has said that he worked in IB FX says it happens but people who say IG do it still get ridiculed by black swan and his cronies lol.

So if IG doesn't stop run etc, I am therefore supposed to accept that:

a) IG doesn't hedge it's positions
or
b) IG's hedges are always profitable (net)
or
c) IG essentially absorbs institutional stop running on it's hedges/market positions which for it's clients

F*ck off.
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To answer these questions:
a)IG does hedge some positions. If you are regular winning client then IG will hedge or sometimes even force you as a client to "work" your order in the underlying market. As a spread betting company you would expect them to take the other side of every deal but over the years IG have become wise to the fact that some clients do make money from the majority of their trades, and these are the ones they hedge. Most client lose money most of the time hence IG's bottom line profit being so high.
b)IGs hedges are not always profitable. Sometimes they may hedge a little to bring themselves back inside of their limits. For example, if they are seeing lots of clients buying the FT100 they will be taken shorter and shorter and eventually they will need to physically buy some FT futures to bring their position back inside the limit. This is how it works.
c)Not sure what you mean, but some stops will simply be taken on the book of IG. Think about it...If IG are seeing buyers all day of the FT, the FTSE will likely be going down and these clients will have stops which will be hit. So IGs short position will simply be taken longer as the stops get hit. This is how they make money. It is a fact that most clients do lose money (as hard as it is to admit!).

Blackswan - are you an employee of IG or simply a wally who make ridiculous comments every now and then??!
 
vizatelli said:
To answer these questions:
a)IG does hedge some positions. If you are regular winning client then IG will hedge or sometimes even force you as a client to "work" your order in the underlying market. As a spread betting company you would expect them to take the other side of every deal but over the years IG have become wise to the fact that some clients do make money from the majority of their trades, and these are the ones they hedge. Most client lose money most of the time hence IG's bottom line profit being so high.
b)IGs hedges are not always profitable. Sometimes they may hedge a little to bring themselves back inside of their limits. For example, if they are seeing lots of clients buying the FT100 they will be taken shorter and shorter and eventually they will need to physically buy some FT futures to bring their position back inside the limit. This is how it works.
c)Not sure what you mean, but some stops will simply be taken on the book of IG. Think about it...If IG are seeing buyers all day of the FT, the FTSE will likely be going down and these clients will have stops which will be hit. So IGs short position will simply be taken longer as the stops get hit. This is how they make money. It is a fact that most clients do lose money (as hard as it is to admit!).

Blackswan - are you an employee of IG or simply a wally who make ridiculous comments every now and then??!
Click to expand...

how do you know all this?
 
vizatelli said:
To answer these questions:
a)IG does hedge some positions. If you are regular winning client then IG will hedge or sometimes even force you as a client to "work" your order in the underlying market. As a spread betting company you would expect them to take the other side of every deal but over the years IG have become wise to the fact that some clients do make money from the majority of their trades, and these are the ones they hedge. Most client lose money most of the time hence IG's bottom line profit being so high.
b)IGs hedges are not always profitable. Sometimes they may hedge a little to bring themselves back inside of their limits. For example, if they are seeing lots of clients buying the FT100 they will be taken shorter and shorter and eventually they will need to physically buy some FT futures to bring their position back inside the limit. This is how it works.
c)Not sure what you mean, but some stops will simply be taken on the book of IG. Think about it...If IG are seeing buyers all day of the FT, the FTSE will likely be going down and these clients will have stops which will be hit. So IGs short position will simply be taken longer as the stops get hit. This is how they make money. It is a fact that most clients do lose money (as hard as it is to admit!).
Click to expand...

:sleep:
 
bigboy said:
I wasn't referring to that post but the one where he mentioned about complaining to the FSA and some clients position in Desire Petroleum...remember. Its gone.
Click to expand...

So, have IG "bankrupted you" yet?
 
vizatelli said:
To answer these questions:
a)IG does hedge some positions. If you are regular winning client then IG will hedge or sometimes even force you as a client to "work" your order in the underlying market. As a spread betting company you would expect them to take the other side of every deal but over the years IG have become wise to the fact that some clients do make money from the majority of their trades, and these are the ones they hedge. Most client lose money most of the time hence IG's bottom line profit being so high.
b)IGs hedges are not always profitable. Sometimes they may hedge a little to bring themselves back inside of their limits. For example, if they are seeing lots of clients buying the FT100 they will be taken shorter and shorter and eventually they will need to physically buy some FT futures to bring their position back inside the limit. This is how it works.
c)Not sure what you mean, but some stops will simply be taken on the book of IG. Think about it...If IG are seeing buyers all day of the FT, the FTSE will likely be going down and these clients will have stops which will be hit. So IGs short position will simply be taken longer as the stops get hit. This is how they make money. It is a fact that most clients do lose money (as hard as it is to admit!).

Blackswan - are you an employee of IG or simply a wally who make ridiculous comments every now and then??!
Click to expand...

All seems reasonable to me.
 
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