IG Index: Deal rejected

[Agent G]

IG Index has just rejected a deal on Encore Oil.

I decided to take a position on Encore Oil after reading that the company is likely to announce some good news on its Varadero well.

However the response I get on opening the deal is "We are not taking opening deals on a Controlled Risk basis on this market.”

WTF. Is IG Index prone to this or would I be better off using a DMA provider who would not ask questions (not sure if this is even true).

 

[ns1000]

You wouldn't be able to deal with a controlled risk stop DMA. Sounds like you can trade the stock without one with IG. Think you're making a mountain out of a molehill.

 

[Agent G]

The bottom line is IG Index aren't taking trades on this product which is annoying. I phoned ENspreads and Capital Spreads and their dealers are accepting trades on this stock. So - just a case of IG Index exercising their discretion on this one. I guess also another reason why its good to have a couple of spread betting accounts.

 

[Hoggums]

Er no. They are not taking controlled risk bets on this stock. There's a difference.

I bet you can't get a controlled risk bet on Capital Spreads or ENSpreads either.

 

[Agent G]

Okay I see what you guys are saying - but why deny someone who has a 'controlled risk' account the ability to trade this stock? I can see volatility will have something to do with it, but the reasons still remain unclear.

 

[donaldduke]

Okay I see what you guys are saying - but why deny someone who has a 'controlled risk' account the ability to trade this stock? I can see volatility will have something to do with it, but the reasons still remain unclear.

Just upgrade your account.

You can still place controlled risk bets in a regular account (where allowed)

 

[ns1000]

The problem with offering a controlled risk stop on something that volatile is that the cost of the stop would be more than anyone would willingly pay. Would you have traded it if the cost of the stop was 20%?