Perpoint Order not Working

• 05/18/2020 at 2:31 PM #132151
  dan.smith14

  Hi everyone,

  I have PRT through IG and I’m backtesting a strategy on a demo spread betting account. I’m using the following code to enter the market, but regardless of the order quantity, the system always purchases that number of shares. Is there something I’m missing?

  Buy Order

  IF (c1 AND c2) THEN BUY 10 PERPOINT AT MARKET ENDIF

  1 2 3

  IF (c1 AND c2) THEN BUY 10 PERPOINT AT MARKET ENDIF

   

   

  

  dan.smith14

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  05/18/2020 at 5:00 PM #132179
  GraHal

  So do you want to buy 10 shares or more or less??

  

  GraHal

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  05/19/2020 at 9:35 AM #132249
  dan.smith14

  I’m trying to place a spread bet at £10 per point.

  

  dan.smith14

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  05/19/2020 at 10:06 AM #132251
  GraHal

  dan.smith14 wrote:

  but regardless of the order quantity, the system always purchases that number of shares. Is there something I’m missing?

  Does order quantity = that number  = lot size??

  It is not clear what you are saying or what is happening that you don’t want to happen?? 🙂

  

  GraHal

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  05/19/2020 at 2:56 PM #132284
  dan.smith14

  Sorry, I’ll explain with an example:

  Let’s say I want to invest in the FTSE 100 index which currently stands at 6000:

  When I log into my demo IG spread betting account, I can use either their own platform to execute my trades or use PRT.

  If I use the IG platform, I manually place a spread bet of £10 per point (point size = 1) and enter at 6000. My trade has a notional value of £60,000 and with a 5% margin, my exposure is £3000. The FTSE rises to 6005 and I exit my position with £50 profit.

  If I use PRT, I execute the code “BUY 10 PERPOINT AT MARKET” hoping for the same criteria as above but the system purchases 10 x 6000. My trade has a real value of £60,000 with £60,000 exposure.

  I have tried with LOTS, SHARES, and CONTRACTS but the result is the same.

  

  dan.smith14

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  05/19/2020 at 4:17 PM #132295
  GraHal

  dan.smith14 wrote:

  My trade has a notional value of £60,000 and with a 5% margin, my exposure is £3000.

  Your exposure is £60K as you are responsible for the full hit.  (but FTSE is unlikely to go to zero! )

  Margin @ 5% = £3K is only your initial margin exposure (your leveraged deposit).

   

  

  GraHal

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  05/20/2020 at 9:46 AM #132370
  dan.smith14

  Yes, that’s correct. With a spread bet, in theory you are responsible for the notional value but with the correct stops in place, it would never go so far, and the initial margin may also rise depending on price fluctuations, resulting in a margin call. However, the benefit of trading on margin is not needing an initial capital deposited to cover the 100%, in this example, £60,000.

  I have been spread betting, and investing using other instruments, for several years, just not with PRT, hence my issue of coding spread betting in the system.

   

  

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  05/20/2020 at 10:02 AM #132374
  GraHal

  dan.smith14 wrote:

  My trade has a real value of £60,000 with £60,000 exposure.

  I am still not clear what is your problem … I guess it must be above?  Even so you do not need the £60k to make the trade … so what is the problem?

  I put a £1 per point trade on the DJI and so exposure is £24,400 but I only need 5% margin to make the trade.

  Who / when / what is it that prevents you making a £10 per point trade on FTSE that requires more than 5% margin?

  Screen shots of what prevents you would be very useful?

  

  GraHal

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