Knock-outs trading

Why trade knock-outs with IG

Trade knock-outs on these markets

Why trade knock-outs?

Knock-outs are innovative CFDs that automatically close when the market hits your chosen level. Unlike traditional CFDs, your maximum loss is locked in from the start - giving you the confidence to trade with leveraged positions while maintaining strict risk control.

Key advantages:

• Predefined maximum loss - know your risk before you trade
• No slippage beyond your level - guaranteed stop-loss protection
• Simpler than traditional options - no complex pricing or time decay
• Full market exposure - profit from unlimited upside potential
• Professional trading panel - monitor all your knock out positions in one place

Perfect for traders who want the flexibility of CFDs with the peace of mind of built-in risk management.

How to trade knock-outs

Knock-outs are limited-risk CFDs that automatically close when the underlying market reaches your predetermined knock-out level. Here's how they work:

Choose your direction: Buy a bull knock-out if you expect the market to rise, or a bear knock-out if you expect it to fall.

Set your knock-out level: This acts as your automatic stop-loss. For bull knock-outs, choose a level below the current market price. For bear knock-outs, choose a level above the current market price.

Control your risk: Your maximum loss is limited to your initial margin payment, calculated as the distance between the market price and your knock-out level, plus the knock-out premium.

Trade closes automatically: If the market moves against you and hits your knock-out level, the position closes automatically with no risk of slippage beyond this point.

Costs of trading knock-outs with IG

Transparent pricing for knock out option trading with competitive spreads and no hidden fees. Our limited risk derivatives offer clear, upfront costs so you know exactly what you'll pay.

FAQs

Try these next