What are Bungee Bets?
This is one of the latest product innovations from IG Index. The way it works is that you select a stop loss level for the day and should the market breach that level your total loss is frozen but you aren’t stopped out! (unlike an ordinary stop loss order where should the market hit the stop loss level you are out) And should the market later recover you can sell at a profit or a reduced loss – and of course you have to pay a hefty premium for the privilege. The last time I check IG Index offered Bungee Bets on commodities, forex pairs and indices. Further information on Bungee Bets and their workings are available here.
