On Monday there was a rally by most of the Footsie constituents. Of the few laggards I selected Allied Unichem (AUN) as a possibility and, as I can't be watching in the afternoon, I left a limit order to buy at 754 (Market) with a Market Stop at 749. When this was triggered the SB quote was 757.8. This was disappointing , as I was hoping to be in profit by the close, which was not the case.
At the start of the Tuesday trading the spread was a colossal 45 points. In other words, a spike had formed and there was no way that the SB company was going to let anyone take advantage of it. The selling price was around 756, below my buy of 758.7, and the buy was over 790. Anyone foolish enough to buy at that level would lose a lot within the first hour's trading. There came a short period, when I could have sold for 761, but I was hoping for more than that. However, the price dropped quickly, afterwards, and I was stopped at 750.
This has proved to me that Finspread will not allow spikes to be traded.
I am experienced in spreadbetting and this is just a trade that went wrong- not to worry, my loss was 8 points. I just thought that it would serve as information to anyone else interested, but I would welcome any observations, at the same time.
One point springs to mind. If I had used "their quote" to enter the market at 754. in instead of "market" I could, probably, have saved myself from a loss, perhaps even have made a couple of points profit, although it would not have been easy, the price was swinging 5 points at a time.
Also, perhaps I should have been wary of entering a trade with a company in merger talks with BOOT. However, as someone told me once, "If you are not in, you don't win".
Split
At the start of the Tuesday trading the spread was a colossal 45 points. In other words, a spike had formed and there was no way that the SB company was going to let anyone take advantage of it. The selling price was around 756, below my buy of 758.7, and the buy was over 790. Anyone foolish enough to buy at that level would lose a lot within the first hour's trading. There came a short period, when I could have sold for 761, but I was hoping for more than that. However, the price dropped quickly, afterwards, and I was stopped at 750.
This has proved to me that Finspread will not allow spikes to be traded.
I am experienced in spreadbetting and this is just a trade that went wrong- not to worry, my loss was 8 points. I just thought that it would serve as information to anyone else interested, but I would welcome any observations, at the same time.
One point springs to mind. If I had used "their quote" to enter the market at 754. in instead of "market" I could, probably, have saved myself from a loss, perhaps even have made a couple of points profit, although it would not have been easy, the price was swinging 5 points at a time.
Also, perhaps I should have been wary of entering a trade with a company in merger talks with BOOT. However, as someone told me once, "If you are not in, you don't win".
Split
