- IG move catches some clients out
- Mining royalty specialist's shares are testing resistance levels
- Next staging post could signal more gains to come
Big news in the world of trading: IG is making over 1,000 stocks 100 per cent margin from this Friday. You’d think that all clients would be told at the same time but sadly not – other clients and myself found out last Friday, and an email was only sent out to all clients at 12:38 on Monday.
One ramification of this meant that some clients had informational advantages over others. For example, anyone running a highly-leveraged account could start unwinding positions before the rest of the market, and certainly before any forced selling. Another advantage is going short some of the stocks that are popularly held. Front-running panic selling is a good strategy and in some cases your selling can even mark the merchandise down. This can have the effect of spooking people further.