IG Markets massive slippage on slow moving DAX

[Splitlink]

Not to defend them, but I have been trading with them for three years or so and I find them a very serious company.

As previously said, I believe this situation happened because of the news coming out of the rocket launch by Israel.

It is unfortunate that it happened to you but it is a risk we all have to bear in mind these days. With the proliferation of HFT, the machines get turn off automatically when this kind of volatility appears. As most of the trading is done by machines these days, it leads to an instant collapse of liquidity. There are no bids anymore therefore it is impossible to close any positions. Flash crashes are becoming more often and even entire exchanges (Nasdaq few days ago) get shut off.

It is nothing to do with IG or any other broker, it is just a simple operational matter.

The best you can do is to use guaranteed stops, the comission is relatively cheap compare with the disaster it can occurs in a situation like this. You just have to calculate it as a cost of business. And let's face it, trading is not getting any easier due to machines, geopolitical issues and central bank liquidity injections.

Second best is buying a binary option (or a normal option) against your position. If you get the time right you can ensure at least part of your loss for little money. But the prices of these options are not the best most of the times, so make sure you make your calculations well in advance. It might be cheaper to choose directly option 1.

I am sorry this happened to you. I hope you can recover from it.

In an earlier post I mentioned that I was stopped by another SB co. My trade was at 0934 which was the rocket panic. OP's was over an hour later, at 1050, which was a fairly quiet period. I don't understand the reason but it must be another one.

 

[cablemonster]

you could just man up and trade DAx futures and stop pi55ing about with a bucketshop. too spicy for you then trade the eurostoxx, she moves slow

 

[fibbinstarchi]

All SB companies are underhand bookies in disguise - I have yet to meet any serious trader who does not trade the real market - most don't even bother with SB at all

 

[Pferd]

The reason with all these problems is basically the same. Illiquidity in the system which leads to no bids and therefore flash crashes or mini flash crashes as in this case.

After the original news, there were a series of two or three more news which moved the market, the last one with the confirmation that was only a test made by Israel.

You probably got caught in one of those.

 

[ffsear]

Google "IG markets are cheats"

Google "America didn't land on the moon"

 

[yellowfloyd]

I and a friend of mine have been day trading the DAX for a few years now and we have been using IG Markets exclusively for over a year. Tonight he experienced massive slippage on a trade that moved slowly through his stop. According to the tick chart it was around 20 seconds later that IG managed to execute his stop order for a 16 point slippage.... yep that is right you heard it... 16 point slippage. 20 seconds equates to over 700 ticks on the tick chart, where 300 of them was very near his stop. This is also after he tried to get off the trade while it was in profit, but IG didn't let him off because it moved to much... apparently 3 points too much.

This is enough of a reason for us to never ever use IG Markets again, and to actively convince people to never use them... because when you get serious and more money is on the line... funny business starts to happen. IG Markets cannot be trusted.

This is just wrong.

His telephone conversions haven't gone too well... they hold their line that it is acceptable that it can take 20 seconds to exit a trade that is moving slowly through your stop. (...for maximum profit for IG markets)

I take it you’re spread-betting?

I don’t spread bet any more. Most start with spreads, before moving onto CFDs or futures. Reason being that SB is a synthetic market. They’re the ‘bookie’. If you look for something DMA (direct market access), you’ll have much more control. Not to say slippage can’t happen, but you’re dealing with the real market rather than a market maker (who inevitably skews things in his favour). I don’t think this is unique to IG, it’s just the way SB firms have to work to make money.

Most new-ish traders are attracted by the tax-free returns and tight (or non-existant) spreads. But it’s really a false economy – neither of these things matter if it’s harder to make money.

IMHO, look for a DMA trading solution. Hope it helps.

 

[Splitlink]

CFD's are not synthetic?

A better question would have been

Are CFD's trustworthy?

If so

Why are CFD's different prices with different brokers?

 

[WR1]

I can't be bothered to look, but if I remember correctly, that site was started by some idiot who was trading at full margin and then some - it's called Russian Roulette, you may get away with playing it once or twice, but it will always end badly if played for long enough.

agreed - he was a bit of a blonker
but its worth a look for ANYONE considering trading with IG
especially as an ex employee has stated how IG operates

 

[WR1]

Google "America didn't land on the moon"

what a stupid thing to say
does IG advertise here?

show abit of moral responsibly to your fellow traders
your are an impartial moderator after all


and America did nt land on the Moon did they?
who knows ?

 

[ffsear]

The hell are you talking about? Morel responsibility? I'm entitled to an opinion!

My point was you can Google the side of any argument. Its not helpful to the OP. Let people discuss their personal experiences rather then give someone else's biased view!

Also, try googleing the difference between "your" and "you're"

 

[cablemonster]

google 'grassy knoll' and 'magic bullet'

 

[yellowfloyd]

what a stupid thing to say
does IG advertise here?

show abit of moral responsibly to your fellow traders
your are an impartial moderator after all


and America did nt land on the Moon did they?
who knows ?

Mate,

It looks like you have dealt with all the brokers.
So, in your point which one is good?
also, I want to know have you ever won anything? - just curious - don't answer if you think its a bit personal.
As far I found out you're only blaming brokers. If you don't like trading what are doing here. As we need broker anyway.

 

[tar]

CFD's are not synthetic?

A better question would have been

Are CFD's trustworthy?

If so

Why are CFD's different prices with different brokers?

Some CFDs are DMA especially shares CFDs check IG markets they do provide this option , for example : you can trade level 2 DMA with just a 5% margin for Vodafone CFD ...

 

[WR1]

The hell are you talking about? Morel responsibility? I'm entitled to an opinion!

My point was you can Google the side of any argument. Its not helpful to the OP. Let people discuss their personal experiences rather then give someone else's biased view!

Also, try goggling the difference between "your" and "you're"

try googling "Blonkers"

you guys are wasted as traders - you should become comedians, as alot seem to have plenty of spare time on there hands to write your acts

due diligence is always very important
but with all sites on the internet, should always take with a pinch of salt
including this site

IG only has around 8% of winners
and contrary to the usual nonsense put out by charlatans the average is NOT only 5% are winners
its 40% are winners

so something might be wrong at IG


(miss spelling intended - this time)

 

[yellowfloyd]

CFD's are not synthetic?

A better question would have been

Are CFD's trustworthy?

If so

Why are CFD's different prices with different brokers?

Good question. Sometimes people refer to CFDs as being synthetic because certain providers’ prices and execution are OTC (over the counter). Any brokers which do this will set their own prices and they will try to match the underlying market as close as they can. This is why prices can vary!

If you are looking to trade CFDs, I would suggest looking for a broker which offer DMA CFDs (direct market access). As the name suggests, these brokers will give you direct access to the market which means your trades will be executed directly onto the exchange (London Stock Exchange/Chi-X/BATS etc). With DMA, you will get the best possible pricing and the real underlying market prices.

Hope this helps