In the few downward spikes that I have seen during normal trading hours (lasting sub seconds to a few minutes) the buy price is not changed and it is only the sell price that has dropped (effectively the spread has been widened). Therefore, you would not be able to get in at the lower price and it is only your stop that is in danger.
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capitalspreads
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the novice
our quotes are based around the the actual bid offers in the market. Although the lowest actual trade in a particular stock may be at a certain price that does not mean that there was actually a bid available in the market. For example if a share is quoted at 458-460 our quote may be 457.7-460.3. With the bid supported by 5000 shares. Somebody hits the 5000 shares at 458 and the next bid is 450. Our quote will immediately reflect this and widen considerably. Of course eventually a new bid at a more reasonable price eveantually gets posted at which time our quote will narrow again. We do not stop out clients on these events as we wait to ensure that the widening is not just a one off. Of course when you look at the charts from the exchange they will show actual trades whereas we take our charts from our Bid.
brake
the difference is that the charts are taken from the bid of our quote whereas the high low on the information is taking the Low bid and the High offer. So in the March FTSE the (which has a spread of 4) the high will almost always be 4 higher on the info button than on the chart. The charts are for information perposes only and may not reflect every single tick price quoted on our platform.
we do quote the quarterly wall street if you click on indices then choose the American indices in the drop down box you will find the quarterly wall street if you scroll down the page.
the spike was caused when we switched from exchange priced information feed to our own price action feed (the dealers put the wrong value in one of the fixing boxes! ) of course we would never stop a client out on such an event. If you read the Terms and Conditions you will see that a 'Pricing Error' gives clients exactly the same protection as it gives to us in the event of incorrect prices hitting the trading platform.
sambinho
the demo account is controlled by computers and they are unable to detirmine whether a price is incorrect or not. On the live site naturally we ignore feed blips of this nature.
Steve
at the moment we are happy to accept or decline trades from our customers on the binary platform. If we feel the price is incorrect we will reject a trade. But at the moment we will not prevent clients from trading even if they are winning. BUT we are not silly in line with every bookie in the world if a client continues to win money from us in a market in which we are unable hedge we would probably look to restrict him in some way. As do IG, Finspreads, Cantors etc ... the solution to your question would no doubt be an exchange scenario (as per bet fairs financial bets) but it is difficult to get a trade on in an exchange enviroment because API links from providers are faster than you can place the trade so that you are unlikely to be filled unless the price was against you.
In reference to the above we have never stopped (in all two years of being in business) a client from trading on our spread betting platform no matter how much they win.
simon
our quotes are based around the the actual bid offers in the market. Although the lowest actual trade in a particular stock may be at a certain price that does not mean that there was actually a bid available in the market. For example if a share is quoted at 458-460 our quote may be 457.7-460.3. With the bid supported by 5000 shares. Somebody hits the 5000 shares at 458 and the next bid is 450. Our quote will immediately reflect this and widen considerably. Of course eventually a new bid at a more reasonable price eveantually gets posted at which time our quote will narrow again. We do not stop out clients on these events as we wait to ensure that the widening is not just a one off. Of course when you look at the charts from the exchange they will show actual trades whereas we take our charts from our Bid.
brake
the difference is that the charts are taken from the bid of our quote whereas the high low on the information is taking the Low bid and the High offer. So in the March FTSE the (which has a spread of 4) the high will almost always be 4 higher on the info button than on the chart. The charts are for information perposes only and may not reflect every single tick price quoted on our platform.
we do quote the quarterly wall street if you click on indices then choose the American indices in the drop down box you will find the quarterly wall street if you scroll down the page.
the spike was caused when we switched from exchange priced information feed to our own price action feed (the dealers put the wrong value in one of the fixing boxes! ) of course we would never stop a client out on such an event. If you read the Terms and Conditions you will see that a 'Pricing Error' gives clients exactly the same protection as it gives to us in the event of incorrect prices hitting the trading platform.
sambinho
the demo account is controlled by computers and they are unable to detirmine whether a price is incorrect or not. On the live site naturally we ignore feed blips of this nature.
Steve
at the moment we are happy to accept or decline trades from our customers on the binary platform. If we feel the price is incorrect we will reject a trade. But at the moment we will not prevent clients from trading even if they are winning. BUT we are not silly in line with every bookie in the world if a client continues to win money from us in a market in which we are unable hedge we would probably look to restrict him in some way. As do IG, Finspreads, Cantors etc ... the solution to your question would no doubt be an exchange scenario (as per bet fairs financial bets) but it is difficult to get a trade on in an exchange enviroment because API links from providers are faster than you can place the trade so that you are unlikely to be filled unless the price was against you.
In reference to the above we have never stopped (in all two years of being in business) a client from trading on our spread betting platform no matter how much they win.
simon
FXSCALPER2
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Hey Simon,
Why don't you allow fractional betting? It makes a big difference for compounding overtime if one can take advantage of being able to bet fractions. As things stand now, one has to wait to make enough to be able to increase one's bet. So if I bet, say, £10/pip and win, my risk management means I have to wait for enough wins in order to be able to increase my bet to £11/pip. Whereas, if you allow betting in fractions, I one can increase/decrease bet size after each and every trade. I am sure you know, over time, this makes a huge difference.
cheers.
Why don't you allow fractional betting? It makes a big difference for compounding overtime if one can take advantage of being able to bet fractions. As things stand now, one has to wait to make enough to be able to increase one's bet. So if I bet, say, £10/pip and win, my risk management means I have to wait for enough wins in order to be able to increase my bet to £11/pip. Whereas, if you allow betting in fractions, I one can increase/decrease bet size after each and every trade. I am sure you know, over time, this makes a huge difference.
cheers.
capitalspreads
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fxscalper
every company has a limit below which they will not go and with us it is £1,€1,$1 per point. (of course if you open a dollar account you can effectively trade with as low as 58p equivalent). I think there is only one company (finspreads) who offer less, but there may be others. In reality there is a limit below which it is just not worth my dealers time to be accepting trades! Because in the hassle over five 10p bets they may miss a £200 one.
£1 bets are a perfectly reasonable minimum stake (i believe) they equate to 100 shares or £17,000 of currency exposure
Simon
every company has a limit below which they will not go and with us it is £1,€1,$1 per point. (of course if you open a dollar account you can effectively trade with as low as 58p equivalent). I think there is only one company (finspreads) who offer less, but there may be others. In reality there is a limit below which it is just not worth my dealers time to be accepting trades! Because in the hassle over five 10p bets they may miss a £200 one.
£1 bets are a perfectly reasonable minimum stake (i believe) they equate to 100 shares or £17,000 of currency exposure
Simon
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FXSCALPER2
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capitalspreads said:
presumably you can't arrange it so that one can bet £1.10 but not just .10p, can you?
capitalspreads
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ummm not really no
simon
simon
mickandpete
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With all the stick you take on here Simon I would like to point out
YOU CAN TRADE 17000 Pounds of currency exposure at virtually Wholesale Interbank spreads
YOU CAN TRADE 17000 Pounds of currency exposure at virtually Wholesale Interbank spreads
spreadrisk
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"...BUT we are not silly in line with every bookie in the world if a client continues to win money from us in a market in which we are unable hedge we would probably look to restrict him in some way. As do IG, Finspreads, Cantors etc ... "
Time to move onto a fairer system, like http://www.futuresbetting.com/home.php
where you are competing against a real Market.
Time to move onto a fairer system, like http://www.futuresbetting.com/home.php
where you are competing against a real Market.
FXSCALPER2
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mickandpete said:
I trade forex and I can tell you that the spread being 2 or three pips has ZERO impact on your trading results. Why? Because the prices at different brokers are not adjusted at exactly the same time. So if you and I use exactly the same system and you enjoy a 2 pip spread while I trade with 3 pips, I bet it will make no difference. If CS have, say 1.7450 bid and CMC 1.7450, then you will do better with CS only if the prices are at 1.7450 at exactly the same time and get to your profit targets at exactly the same time. If on the other hand I go short at the price of 7451 with CMC and the price at CS is 7450 and you go short, your 1 pip advantage is gone because I gained the one pip already. This happens all the time, by the way. The tight spread stuff is mostly an illusion. With FX any way.
capitalspreads
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I must say we got a right pair this morning !!
fxscalper does it yet again..... I must say if I came out and said that the spread made no difference in FX, I would be swamped in the rush of scorn.... what you completely fail to point out is that "yes you got in at such and such price" BUT BUT BUT when you want to get out again then you will have pay the spread quoted by the company with whom you have opened your trade. So when you get in at a 1 pip better price (on occasion) you will immediately have lost that advantage when you try to trade out on the wider spread. In the long run the width of the spread (combined with dealing costs etc) is absulutely crutial to your profitability.
there is a general point here ... there is no such thing as an FX exchange so each provider is giving his own prices. Sometimes CS will have a good bid/offer and sometimes someone else will. BUT if you have tight prices the chance are that you will much more frequently get a good price offered to trade on.
spreadrisk .... please read the threads before you comment... we were talking about binary bets ... as I have commented many times we have never restricted a clients trading on the spread betting side NO MATTER how much they win. Frankly the restrictions on the site recommended by your good-self combined with the overall costs involved (extra margin required, commissions dressed up as spread, high minimum stakes etc etc) mean that although we did lose a couple of clients to them in the beginning they have come back to us once more. When you actually look at the rate sheet ..... the charge is per lot and you get charged going into the bet and then coming out again...(i.e on entry and exit)...for most of their products this makes the 'spread' that they are charging wider than ours .(especially in currencies).. although (to be fair) on a few they are marginally tighter .......... AND you are subject to the liquidity available in the market (if the futures spread widens so will the price offered to you) whereas our spreads in most products remains the same no matter what. The only way this could possibly be cheaper would be if you traded in absulutely huge size and even then the saving is small. But each to their own .. no doubt they have their advantages as well, and the platform appears to be very professional.
mick and pete
actually I rather like commenting on this thread ... most of the comments are informed or express serious questions etc... and at least I get the chance to get away from running the biz all day long.
cheers guys
simon
fxscalper does it yet again..... I must say if I came out and said that the spread made no difference in FX, I would be swamped in the rush of scorn.... what you completely fail to point out is that "yes you got in at such and such price" BUT BUT BUT when you want to get out again then you will have pay the spread quoted by the company with whom you have opened your trade. So when you get in at a 1 pip better price (on occasion) you will immediately have lost that advantage when you try to trade out on the wider spread. In the long run the width of the spread (combined with dealing costs etc) is absulutely crutial to your profitability.
there is a general point here ... there is no such thing as an FX exchange so each provider is giving his own prices. Sometimes CS will have a good bid/offer and sometimes someone else will. BUT if you have tight prices the chance are that you will much more frequently get a good price offered to trade on.
spreadrisk .... please read the threads before you comment... we were talking about binary bets ... as I have commented many times we have never restricted a clients trading on the spread betting side NO MATTER how much they win. Frankly the restrictions on the site recommended by your good-self combined with the overall costs involved (extra margin required, commissions dressed up as spread, high minimum stakes etc etc) mean that although we did lose a couple of clients to them in the beginning they have come back to us once more. When you actually look at the rate sheet ..... the charge is per lot and you get charged going into the bet and then coming out again...(i.e on entry and exit)...for most of their products this makes the 'spread' that they are charging wider than ours .(especially in currencies).. although (to be fair) on a few they are marginally tighter .......... AND you are subject to the liquidity available in the market (if the futures spread widens so will the price offered to you) whereas our spreads in most products remains the same no matter what. The only way this could possibly be cheaper would be if you traded in absulutely huge size and even then the saving is small. But each to their own .. no doubt they have their advantages as well, and the platform appears to be very professional.
mick and pete
actually I rather like commenting on this thread ... most of the comments are informed or express serious questions etc... and at least I get the chance to get away from running the biz all day long.
cheers guys
simon
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capitalspreads
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mustafa
all in good time......yes we will be offering currency binaries etc.. but not until we are completely happy with our pricing models.
Simon
all in good time......yes we will be offering currency binaries etc.. but not until we are completely happy with our pricing models.
Simon
FXSCALPER2
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capitalspreads said:I must say we got a right pair this morning !!
fxscalper does it yet again..... I must say if I came out and said that the spread made no difference in FX, I would be swamped in the rush of scorn.... what you completely fail to point out is that "yes you got in at such and such price" BUT BUT BUT when you want to get out again then you will have pay the spread quoted by the company with whom you have opened your trade. So when you get in at a 1 pip better price (on occasion) you will immediately have lost that advantage when you try to trade out on the wider spread. In the long run the width of the spread (combined with dealing costs etc) is absulutely crutial to your profitability.
Simon,
Of course it would make a difference. IF you were the only one around. IF the choice is between 2 pips WITH YOU OR 3 pips WITH YOU, clealry I would go for 2 pips WITH YOU. But that is not the choice. If I enter short at 1.7451 and exit at 1.74 (when CMC are quoting 7397/7400) then I make 51 pips. If the trader who uses CS enters at 1.7450 and exits at 1.74 (when CS are quoting 7398/7400) he makes 50 pips (he can even be worse off!). This is just an example, of course. It may be worse or better for either, which is exactly my point. This would become obvious to anyone who just opens your platform and CMC's (or Oanda's, or FXCM'S, etc) and have a look for a while. I hope you are not going to deny that.
I like CS and it has very friendly staff (maybe the best). I trade with CMC because I can bet £132021.50 if I want toand I have to always bet in multiples of £1 with you. This is a big disadvantage for anyone who understands the power of comounding. However if the day ever comes when all brokers quote the same priceat the same time, then I will go with the tightest spread because IT IS A HUGE ADVANTAGE. I hope that clarifies what I am saying. Believe me Simon, I am not as dumb as you think.
capitalspreads
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fxscalper
yes the only way everyone would agree on the price all the time would be if FX was traded on an individual exchange like the FTSE future or an individual stock. But at this time that is v. unlikely as the liquidity in the cash market swamps that on the futures exchanges.
Of course, different price feeds give varying prices as the banks and brokers backing them up may have a slightly differing opinion as to the real price. The problem with all this is that, like CMC in cable we have a 3 pip price (and IG and Fins etc), if CMC's bid is 1 pip better than CS then ipso facto their offer must be 1 pip worse. So depending on whether at that moment in time you were a buyer or seller you would curse/or praise either CMC or CS for their price! Such is life !
mombasa
thks for the comment v. good of you to say so (ps...cheques in the post !)
cheers guys
simon
yes the only way everyone would agree on the price all the time would be if FX was traded on an individual exchange like the FTSE future or an individual stock. But at this time that is v. unlikely as the liquidity in the cash market swamps that on the futures exchanges.
Of course, different price feeds give varying prices as the banks and brokers backing them up may have a slightly differing opinion as to the real price. The problem with all this is that, like CMC in cable we have a 3 pip price (and IG and Fins etc), if CMC's bid is 1 pip better than CS then ipso facto their offer must be 1 pip worse. So depending on whether at that moment in time you were a buyer or seller you would curse/or praise either CMC or CS for their price! Such is life !
mombasa
thks for the comment v. good of you to say so (ps...cheques in the post !)
cheers guys
simon
FXSCALPER2
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capitalspreads said:fxscalper
yes the only way everyone would agree on the price all the time would be if FX was traded on an individual exchange like the FTSE future or an individual stock. But at this time that is v. unlikely as the liquidity in the cash market swamps that on the futures exchanges.
Of course, different price feeds give varying prices as the banks and brokers backing them up may have a slightly differing opinion as to the real price. The problem with all this is that, like CMC in cable we have a 3 pip price (and IG and Fins etc), if CMC's bid is 1 pip better than CS then ipso facto their offer must be 1 pip worse. So depending on whether at that moment in time you were a buyer or seller you would curse/or praise either CMC or CS for their price! Such is life !
That is all I was saying Simon
capitalspreads
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chopper
sorry ... we have asked for some idea from our IT developers as to how this could be done. The first noise I got was the same sound you get from a car mechanic when you ask whats wrong with your car and how much it will cost to mend it !! That kind of indrawn breath just before a large number is mentioned !!
We are continuing to add functionality but this one is (i must admit ) a little way down the line.
Simon
sorry ... we have asked for some idea from our IT developers as to how this could be done. The first noise I got was the same sound you get from a car mechanic when you ask whats wrong with your car and how much it will cost to mend it !! That kind of indrawn breath just before a large number is mentioned !!
We are continuing to add functionality but this one is (i must admit ) a little way down the line.
Simon
