IG Index Slippage?

[JamieM]

Hey Guys,

Me again, I've been attempting to trade with IG Index and have noticed their weird stop loss execution. If the stop loss is triggered with a small jump over they leave the loss ride until the next tick in favour, This has happened to 25~33% of my trades.

This data is an exact replica of the data IG index provide to the trading platform, You can clearly see from the screenshot provided as such.

The duration from Stop loss to execution is 2.1 seconds. If IG Index are so fast, why are they so slow at executing the stops?

Why are companies allowed to execute stops like this and not apply the same rules to limits? (I've never come out for more then my limit), Is this legal?

 

[anley]

A stop is a market order, a limit is not therefore the vast majority of limit orders (probably 99%+, unless on the open) will be filled at the limit price.

You must understand the difference otherwise you're really going to struggle.

The reason you're probably getting slippage is your stop is where the majority of stops are so there's an order imbalance, ie 500 lots to sell on stop versus 100 lots to buy.

 

[JamieM]

A stop is a market order, a limit is not therefore the vast majority of limit orders (probably 99%+, unless on the open) will be filled at the limit price.

You must understand the difference otherwise you're really going to struggle.

The reason you're probably getting slippage is your stop is where the majority of stops are so there's an order imbalance, ie 500 lots to sell on stop versus 100 lots to buy.

Why are they different?

If I was to enter without a stop or limit and manually add orders, I could get slippage on their entry execution, what's the difference here?

 

[anley]

Jamie

I'd stop trading if I were you as you don't even understand the different orders and how they work.

Go open a dummy account (an apt word in your case) and practice with all the different orders, do this for a minimum of 2 weeks. Also search Google and the spread bet sites for more detailed information on all the orders, how to use them, why to use them, how they really work, their advantages and disadvantages etc.

Trading is hard enough to make money in when you do know what you;re doing, but impossible if you don't understand the very basics.

Don't have a go at me, just being cruel to be kind

 

[JamieM]

Jamie

I'd stop trading if I were you as you don't even understand the different orders and how they work.

Go open a dummy account (an apt word in your case) and practice with all the different orders, do this for a minimum of 2 weeks. Also search Google and the spread bet sites for more detailed information on all the orders, how to use them, why to use them, how they really work, their advantages and disadvantages etc.

Trading is hard enough to make money in when you do know what you;re doing, but impossible if you don't understand the very basics.

Don't have a go at me, just being cruel to be kind

How about you stop adopting the condescending tone, You mention going to a "Dummy account" for two weeks, as if that will explain the difference... I know about Stop order, Limit orders. However That wasn't the question. If I had a limit at 6000, and the price Jumps from 5995 to 6005 in ONE tick, They would fill me at 6000, however the price wouldn't exist, yet if I had a stop loss in the exact same situation they would fill me at 6005, 5 points more, Why is the acceptable.

If your feeling upto the challange maybe you could explain the difference or the reason behind this.

 

[anley]

You're dealing against a market maker and hence as long as he makes a legal market and within the rules, he can do what he wants. So limit orders get filled at the limit level and stops at the current market price.

Plus, you're assuming that IG is reporting all the ticks, chances are they won't be, so the feed you see will therefore be indicative only.

If all this is upsetting you then forget about spread betting, go trade FTSE futures where the market is far more transparent with a proper T&S. Plus, you'll have a shot at buying the bid and selling the offer, a massive advantage over spread betting.

 

[Hotch]

BWAHAHAHAHAHAHA!

Maybe I can explain it to you, but I'm sure I'll fail.

The price CAN'T jump from 5995 to 6005 if your order is in at 6000, because you're willing to sell at 6000, and obviously someone is willing to buy at 6000 if they're willing to buy at 6005, so there's a tick.

However on your stop, you want to sell at 5875 or whatever, if nobody is willing to buy there, then you can't bloody sell there can you? So you get slipped and sell at whatever anyone is willing to buy at.

 

[JamieM]

BWAHAHAHAHAHAHA!

Maybe I can explain it to you, but I'm sure I'll fail.

The price CAN'T jump from 5995 to 6005 if your order is in at 6000, because you're willing to sell at 6000, and obviously someone is willing to buy at 6000 if they're willing to buy at 6005, so there's a tick.

However on your stop, you want to sell at 5875 or whatever, if nobody is willing to buy there, then you can't bloody sell there can you? So you get slipped and sell at whatever anyone is willing to buy at.

We are talking about Spread betting here based on their quotes right?

 

[JamieM]

You're dealing against a market maker and hence as long as he makes a legal market and within the rules, he can do what he wants.

Thank you, That's what I wanted to know.