Knock-outs trading
Knock-outs let you trade with a built-in limit on how much you can lose.
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Why trade knock-outs with IG
Limited risk
Lock in your maximum loss in advance.
Flexible margin
Your total margin is equal to your total risk multiplied by 1.1¹.
Get a refund
We’ll refund your premium if the trade isn't knocked out.
Trade knock-outs on these markets
What is knock-outs trading?
Knock-out trading involves setting a knock-out level when you open a trade. This is the price at which the trade will automatically close if the market moves against you.
Why trade knock-outs?
Knock-out CFDs let you set a predefined risk level, so that you know your maximum loss upfront. They offer built-in protection against excessive losses while allowing leveraged trading. Plus, there’s no risk of slippage beyond your knock-out level, giving you more control.
How to trade knock-outs
You’ll need to choose whether you’re buying or selling. You can then select the specific knock-out level at which your position will be closed out if the market goes against your prediction.
Costs of trading knock-outs with IG
Spread costs and fees
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This is the main cost of trading.
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It’s built into the buy and sell prices.
Knock-out premium
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A fee if your position is knocked out.
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This covers IG’s guaranteed protection.
Overnight funding
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Overnight fees may apply.
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It depends on how long the position is held.
FX conversion fee
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Fees apply when trading in different currencies.
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Automatically applied at current rates.
Trade knock-outs on these platforms
- IG Online platform
- IG Mobile app
Choose our online platform for a seamless and lightning-fast trading experience.
FAQs
What's the difference between knock outs and a guaranteed stop?
A knock-out is a trade with built-in risk management, the trade automatically closes if the price hits your knock-out level, and the cost is included in the spread. A guaranteed stop is an add-on to a regular trade that ensures it closes at your chosen price, even in volatile markets, but you pay an extra fee if it’s triggered.
Can I adjust my knock-out level after opening a trade?
No, the knock-out level is fixed at the time you open the trade and cannot be adjusted later.
Are knock-outs suitable for beginners?
Yes, knock-outs can be a good choice for beginners because of their simplicity, built-in risk management and transparent costs.
Try these next
1 Margin requirement computation to comply with regulations.
Contact
New clients
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accountopening@ig.com.sg
Existing clients
+65 6390 5118
helpdesk@ig.com.sg
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Disclaimers:
- All forms of investments carry risks and trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits, so please ensure that you fully understand, and are aware of, the risks and costs involved. Refer to the Risk Disclosure Statement and Risk Fact Sheet.
- IG Asia Pte Ltd (Co.Reg.No. 200510021K) is regulated by the Monetary Authority of Singapore and holds a capital markets services licence for dealing in capital markets products that are over-the-counter derivatives contracts and is an exempt financial adviser.
- IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. You should consider your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
- The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
- This advertisement has not been reviewed by the Monetary Authority of Singapore.
