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OTC leveraged products, including CFDs, are complex investments, which come with a high risk of losing money rapidly due to leverage. 80% of retail client account lose money when trading OTC leveraged products, including CFDs, with this investment provider. OTC leveraged products, including CFDs, are complex investments, which come with a high risk of losing money rapidly due to leverage. 80% of retail client account lose money when trading OTC leveraged products, including CFDs, with this investment provider.

Knock-outs trading

Capped risk; unlimited profit potential. Trade global markets with knock-outs - whether you're bullish or bearish.

How do knock-outs work?

Knock-outs are a limited-risk product with an expiry. They move one-for-one with the underlying 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 – buying a bull knock-out means you think the market will rise, and a bear knock-out trade means you think it will fall. You can close your position at any time before expiry - unless the knock-out level is reached, in which case the position will be automatically closed.

MVID-861-EN Knock-Outs video-20200706-MV-v2
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      Why trade knock-outs?

      Higher leverage

      Set your knock-out level and trade size to control your risk taken

      Simple pricing

      The knock-out price moves one-for-one with IG’s underlying price1

      Lower risk

      Your total margin is equal to your total risk

      Knock-outs vs CBBCs

      Compared with the traditional CBBC (CBBC), the bull-bear option provided by the IG CFD account has the following differences and advantages.

      Knock-outs

      CBBC

      Trading hour

      24-hour trading (based on IG underlying market)

      Spot trading session (9:15am to 4:30pm, including market closure)

      Underlying markets

      Global indices, FX, Commodities, Global shares, Cryptocurrencies

      Hang Seng Index, Hong Kong shares, US indices

      Spread

      Hong Kong HS50 spread is as low as 5 points

      Usually around 10 points for Hang Seng Index

      Call price/knock-out level

      Set your own knock-out level. Hong Kong HS50 knock-out level as low as 20 pips from current market price

      No trading gap and settle on the exact level placed by traders

      Hang Seng Index strike price is usually around 700 pips from current market price and it is set by issuers

      Might not be able to settle on the call price

      Settlement

      T+0

      T+2

      Price sensitivity

      Delta 1

      Dependent on the issuer

      HS 50 knock outs

      1. After logging in, click on 'knock-outs' under the 'markets' tab

      On iOS (iPhone, iPad)

      2. Select the underlying market you'd like to trade

      3. Choose between a 'bull' or 'bear' contract based on your directional bias

      4. Click on 'trade bull' or 'trade bear' (depending on the chosen direction) to open the deal ticket

      5. Indicate a knock-out level and position size of your trade

      6. Input your preferred stop distance and limit distance (optional). Click on the 'place deal' button to open the trade

      1. After logging in, under the 'markets' tab, click on the search icon on the top right-hand side of the screen

      On Android

      2. Click on knock-outs and select the asset class and then the underlying market you would like to trade

      3. Select either the 'bull' or 'bear' market from two options, depending on your directional bias

      4. Click on either the 'trade bull' or 'trade bear' button, or switch to the 'new deal' tab to open a ticket

      5. Indicate a knock-out level and determine your position size

      6. Input your preferred stop loss and/or limit distance (optional). Upon confirming all fields, click on the 'place deal' button

      Set up your knock-outs on mobile

      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 cost of knock-outs, including spreads and funding charges, by following the link below.

      On which markets can I trade knock-outs?

      IG offers this product across a range of popular markets, available 24 hours a day, including:

      Major forex pairs

      Global stock indices

      Commodities

      Shares

      Open an account now

      Fast execution on a huge range of markets

      Enjoy flexible access to more than 17,000 global markets, with reliable execution

      Deal seamlessly, wherever you are

      Trade on the move with our natively designed, award-winning trading app

      Feel secure with a trusted provider

      With 45 years of experience, we’re proud to offer a truly market-leading service

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      Learn more about leveraged trading and how we can help you to manage your risk

      Discover our transparent fee structure – including spreads, commissions and margins

      Get some tips on how to get started trading CFDs

      1 This is not the case when the knock-out premium changes. If the knock-out premium changes, the price of the knock-out will move by the amount the premium changes.