Knock-Outs trading

Knock-Outs explained

Knock-outs are a limited-risk CFD trade with an expiry. They move one-for-one with the underlying IG price¹, and close automatically if your chosen knock-out level is hit. By choosing your knock-out level and your trade size, you can manage your maximum risk for each trade.

You can trade knock-outs whether you think the market will rise or fall – simply buy a bull knock-out if you think the market will rise, and a bear knock-out if you think the market will fall.

How do I trade Knock-Outs with IG?

To start trading Knock-Out provider IG, you’ll need to:

Create an IG account

Create an IG account. If you already have an account with us, you’ll find them in our CFD trading platform and mobile apps.

Choose a bull or bear Knock-Out

This is dependent on whether you think the market will rise or fall.

Pick your Knock-Out level

This will be below IG's underlying price for a bull Knock-Out, and above our underlying price for a bear Knock-Out.

Open your position

You’ll know your maximum outlay from the outset. You can choose to close your position at any time – unless it reaches the knock-out level.

How much do Knock-Outs cost?

The opening price of a Knock-Out is the difference between IG’s underlying price at which you open your position and the knock-out level you select. A small Knock-Out premium is included in our spread, which means you’ll receive it back if you close the trade without being knocked out.

Get full product details on the costs of Knock-Outs, including spreads and funding charges, by following the link below.