Did you know that by using non-guaranteed Stops with IG Markets you can reduce the deposit required for your open positions?
Let's see an example of how this works on an Australia 200 trade.
Deposit requirement when not using a non-guaranteed Stop
Say you buy 2 mini-contracts of the Australia 200, each contract has a deposit requirement of $500. So, in this example your deposit requirement would be $1000 (2 mini-contracts x $500).
Deposit requirement when using a non-guaranteed Stop
If you buy 2 mini-contracts of the Australia 200 with a non-guaranteed Stop 30 points away your deposit requirement reduces to only $300. You arrive at this figure as you have bought 2 mini-contracts x the value of a mini-contract ($5 per point) x 30 points, so, 2 x 5 x 30 = $300.
As you can see, by setting a non-guaranteed Stop you can significantly reduce your deposit and actively manage your exposure.
IG Markets has a range of Risk Management strategies that you can employ, to discover more visit our Risk Management page.
If you require further information, please don't hesitate to speak to one of our dealers on 1800 601 799.
The above comments do not constitute investment advice and IG Markets accepts no responsibility for any use that may be made of them.