IG advises traders to monitor positions closely amid ongoing volatility

Maria Nikolova

IG recommends to its clients to ensure that they are comfortable with the size of their positions heading into the weekend.

Online trading major IG has posted a notice on its blog, advising traders on appropriate action given the ongoing market volatility.

Due to ongoing volatility, there is significant risk that markets may gap when they re-open on Sunday night, the broker warns. Traders should ensure that they are comfortable with the size of their positions heading into the weekend, and also be aware that circuit-breakers may be applied over the coming days.

IG recommends to traders to do the following:

  • Monitor your positions closely at all times;
  • Ensure you are comfortable with the size of your positions, and the effect that any market gap may have on them;
  • Ensure you have sufficient funds on your account to cover your positions in the event of a significant market move.

Regarding circuit-breakers, IG explains that, at times of high volatility, regulated central exchanges may suspend trading on one side of the underlying market. This happened to the Dow Jones Industrial Average this week, for instance. IG follows suit whenever a circuit-breaker occurs.

Circuit-breakers are designed to restrict trading in order to avert market crashes or spikes. The restrictions are called ‘up limits’ or ‘down limits’, depending on the direction that the market has moved. As trading is suspended in the underlying market, it will impact how a client trades with IG.

  • An up limit is the maximum amount that the price of a stock index or commodity futures contract will be allowed to increase in a single trading session. If hit, it means that buying will be suspended in the underlying market.
  • A down limit sets the maximum amount that the price of a stock index or commodity futures contract will be allowed to decrease in a single trading session. If breached, it means that selling will be suspended in the underlying market.

At IG, when a down limit has occurred, traders will only be able to buy – whether to open or close a position – through phone dealing. In such a case the price may be significantly lower when the market re-opens.

Read this next

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Bybit expands into Europe amid regulatory scrutiny

Dubai-based cryptocurrency exchange Bybit is expanding its operations in Europe after encountering regulatory challenges in Hong Kong.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

<