One alternative for the delay / issue with the algorithm is to...

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    One alternative for the delay / issue with the algorithm is to short sell yourself into the market once you know your allocation via a CFD.

    I have an IG share trading account which I set up my own SPP at $5 per trade.
    Put in an application of $10K for ABB for which I have been allocated $1,800 (450 shares)
    Opened a short position for 450 shares via my IG CFD account at $4.86 this morning to lock in my profit.

    Net result will be:
    Investment 450 x $4.00 = $1,800
    Gross proceeds 450 x $4.86 = $,2,187
    Share dealing costs -$5
    CFD open/close -$14
    CFD interest (est) -$0.76 (close out 12th Oct).
    Net profit $367.24
    % return allocation 20.4%
    % return application 3.7% (95.4% p.a.)

    OK yes the price could go up between now & when the shares hit my account but I'm happy to lock in a 20%+ profit.

    As the interest charge is so low it doesn't matter if I don't close out both positions straight away when the shares hit my account.

    The above doesn't take into account the IG margin requirement of 25% of the CFD position.
    Last edited by Tarvold: 07/10/21
 
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