Risk Management
IG Markets' Guaranteed Stops offer the best possible protection against an adverse market move, letting you trade CFDs without assuming a potentially open-ended liability.
You can also use our Guaranteed Stops to put an absolute limit on your liability in the event of a violent market movement, without restricting your profit potential. When you place a Guaranteed Stop you set a maximum/minimum exit price for your trade. Your position will be closed at exactly your selected level should the market move against you, even if there is a very sharp overnight move
There is a one-off extra charge, in effect an insurance premium, for this Limited Risk protection. In most cases this is just 0.3% of the underlying transaction value. Limited Risk protection is not available on all shares and the size of the position on which we may be able to offer this facility may be limited. We will be happy to advise you of the facilities available for any particular share.
The margin requirement for a Limited Risk trade is equal to the amount which would be lost if your Guaranteed Stop were triggered, plus 10% to cover any interest or dividend adjustments.
We also offer a full range of non-guaranteed orders to open and close CFD positions. These are available free of charge on most transactions.
Remember that even with Limited Risk protection, trading CFDs carries a high level of risk to your capital, which may not be suitable for everyone. Please ensure you fully understand the risks involved.