What is derived pricing?

IG Bank is always looking for ways in which we can improve our clients’ experience. In order to improve our free price offering and to reflect the most up to date prices for all US, UK, European and Australian shares, rather than providing free delayed pricing, IG Bank has introduced live 'derived pricing,' at no cost to clients. Clients who subscribe to paid non-derived live prices will be unaffected.

Derived prices change in real time. They are created by IG by adjusting the real-time prices feeds from the exchange in a way that makes the price non-reverse-engineerable (as required by the exchange).1 Derived prices may come from one or more exchanges.

It’s important to note this doesn’t affect the execution of your orders. Execution is always against the underlying exchange price, the change is only to the price displayed on your platform so you may even get a better price than the price you click on. This includes stops and limits that are only ever triggered by non-derived prices.

Why are you introducing derived pricing?

We’ve brought this in to simplify and improve the pricing that’s available to you for free. Now rather than seeing delayed prices, you can:

  • View watchlist updates live
  • See live pricing without needing to fill in forms
  • Enjoy live data on charts

How does this affect my positions?

The displayed P&L of all your open positions will be against derived prices. However, because we base execution on the more beneficial exchange price, your realised profit and loss may be marginally better than what you see displayed on the platform. Margin and P&L for the purpose of margin calls will still be calculated basis non-derived live prices, as they are now.

Can I still access raw exchange data?

You can still choose to see an underived, real-time raw data feed on our CFD platform if you wish to pay data redistribution fees.

Visit 'Data Feeds' in the My Account section of the platform for more information.


1 For example, our ASX equity derived prices are created using ASX Real-Time Information.

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