ProOrder – Guaranteed Stop? (IG Limited Risk account)

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  • 07/07/2017 at 11:54 AM #40017
    imokdesign

    As a result of the new BaFin CFD law in Germany, only limeted risk accoutns (IG) with guaranteed stops are possible from July 22nd. I get an Email and they say, i have to stop ProOrder before the named date, add a guaranteed stop and then restart system. My questions: How is this in ProOrder implemented? As an additional code, or just by confirming the ProOrderstrategy. How Is the spread afected and will it have an effect on the minimum stop distance or slippage?

     

     

     

    07/07/2017 at 12:03 PM #40019
    Despair

    Is this affecting all IG customers or only the ones living n Germany?

    I live in Sweden and did not receive such an email so far.

    07/07/2017 at 12:21 PM #40021
    imokdesign

    I think it only affects Germany. Brokers react as seemingly different (as I have read and understand so far). The one bid guaranteed stops. The others have a maximum total account loss of  €0 and nobody can get into debt any more.

    07/07/2017 at 12:30 PM #40022
    Nicolas

    This is a copy/paste from another thread about this:

    In France, promotion of CFDs is now forbidden IF the risk of loss is greater than the investment and is not known before entering a position.

    As a consequence, all new IG accounts in France are limited risk accounts. With limited risk accounts, the trader needs to place a guaranteed stop when entering a position.
    A minimum distance for guaranteed stop is set by the broker. It corresponds in a way to the margin required since the accounts needs to have sufficient funds to cover the loss that would occur is the guaranteed stop was triggered.
    It for example it is set at 50 points on the Dax CFD, it is to impose a 1250 € margin.
    Once the position is Open, the trader can move his guaranteed stop to bring it closer to the price level he wished. However, it is only possible to move a guaranteed stop closer to the price level and not move it further away.

    Once the account is opened, it is possible to request to IG to migrate to what they call an “Expert” account. To approve a request, IG will ask the client by phone to confirm his trading experience, income and savings .

    Currently, ProOrder AutoTrading is not available with limited risk accounts, but I know ProRealTime is just a few weeks away from making it available.

    In Germany, the BAFIN also implemented a restriction on CFDs that will apply starting 10th of August 2017 (source: https://www.bafin.de/SharedDocs/Veroeffentlichungen/EN/Aufsichtsrecht/Verfuegung/vf_170508_allgvfg_cfd_wa_en.html?nn=7858824)

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    avatar Despair
    07/22/2017 at 8:23 PM #41374
    imokdesign

    OK, Today my account has changed to an “Limited risk account”, so they stopped all the ProOrder Strategies today (As described in a previous e-mail from IG). By activation there are some new hints (see at the screenshot). Unfortunately just in German. (If the guaranteed stop is reached, costs are incurred by a little commission, etc. …)

    Which I think is a real pity, is that no trailingstops or variables are allowed, by using ProOrder. 🙁

     

    07/23/2017 at 8:09 AM #41390
    Nicolas

    Copy/paste and translated from the french forum topic about limited risk account:

    For information purposes and for memory, here are the main features of the limited-risk accounts and which can have an impact on ProOrder:

    1. Stops followers: Stop followers are not allowed on limited-risk accounts
    2. Guaranteed Stops: All ProOrder protection stops are automatically converted to guaranteed stops. On this type of stop, the level of execution is guaranteed, even if the course evolves brutally against you. Special pricing applies (only if the stop is triggered)
    3. Attached Stops: A protective stop must be attached when opening a position or placing a purchase / sale order. In the code, the SET STOP pLOSS statement (for example) must not be in a condition (IF / ENDIF)
    4. Distances of stops: It is not possible to move a protection stop away from the position (ie SET STOP pLOSS x, where x variable requires never to increase x after the stop, but it can of course be brought closer to Condition to respect the minimum difference between the price and the new stoploss value)
    5. Hedging: Limited risk accounts do not allow you to be both long and short on the same value. Therefore, it is not possible:
      To have a strategy LONG and another SHORT if these strategies are launched on instruments with a common underlying (eg France 40 and France 40 mini)
      To set 2 limits of opposite direction on the same value
      To place a stop in the opposite direction to a position, between the position and its protective stop

    In addition :

    The minimum stop distances are greater than the so-called “expert” accounts (current normal account), the information of this distance can be found in the instrument’s manual trading information (expressed in points or percentage for actions ).

    Since the follower stop will not work, the SET STOP TRAILING instruction will be inoperative, so I advise you to use the coded trailing stop you find in the blog part of the site (many strategies already use it in the code library ).

    The stoploss can be far from the entry price, far enough, but you must take into account your margin required to place it (of course you can not lose more than the size of your money account, so be vigilant at Level of the stoploss).

    07/23/2017 at 1:23 PM #41402
    Despair

    I checked with IG in Sweden and here (so far) all is unchanged. I was told that so far only Germany and France are affected by the new rules and that they talk about it also in the UK. But it is not unlikely that other countries will follow.

    07/23/2017 at 1:25 PM #41403
    Eric

    ” use the coded trailing stop you find in the blog part of the site ”

    as i understand it the minimum distance using a guaranteed stop can change during the day depending on news and other things and can be wide/great sometimes?

    so what happens if the system try to move the custom trailing stop closer than the minimum distance?

    a) the system stops ?

    b) nothing happens the stop stays at previous level and the system try to move it on the next bar close?

    i would prefer b)

     

     

    07/23/2017 at 1:33 PM #41407
    Eric

    they try to force us to trade with brokers in countries with no regulation?

    https://www.leaprate.com/financial-services/rules-and-regulation/esma-planning-pan-european-rules-forex-cfd-trading/

     

    https://www.leaprate.com/forex/regulations/fca-delays-fx-cfd-leverage-rules-esma-decides-review-industry/

    07/23/2017 at 4:37 PM #41431
    Nicolas

    a) I don’t think so

    b) I think this is the case, but I need to confirm this case as this is also new to me! and I don’t have a limited risk account myself 🙂

    07/26/2017 at 8:54 PM #41741
    bmentink

    Hi,

    Does anyone know if this will affect Australian version of IG? ALso, regarding not being able to do trailing stops. That point is mute I feel, as a trailing stop can be implemented programatically , you don’t need to use the broker “stop”. If you program it yourself, all the broker will see is a close of position. Nicolas please confirm?

    08/04/2017 at 6:44 AM #42458
    Leo

    Hi all,

    I am in Germany and since the 22th July my system re-starts with the new Guaranteed Stops (now is more expensive to do scalping by the way) and everything go on so far.

    Today I receive an email from IG that with my Low Risk Account, I am not able to use ProOrder.

    Is anyone of you having an issue with your systems?

     

    08/04/2017 at 1:25 PM #42478
    hugh

    Hi

    Nicolas posted on 7 July 17 that:

    “Currently, ProOrder AutoTrading is not available with limited risk accounts, but I know ProRealTime is just a few weeks away from making it available.”

    Is there any update on this?

    Thanks

    08/04/2017 at 2:00 PM #42480
    Leo

    I called IG and it was not so complicated to upgraded to a normal account by replying some questions.

    hope it works to all of you

    08/04/2017 at 7:36 PM #42486
    imokdesign

    At the moment my LRAccount runs perfectly. ProOrder runs as it should …

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