Best Thread Capital Spreads
abobtrader
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Hi, I've just received an e-mail saying 24 hour FX trading is up and running (cool!) and that you have a new policy regarding fills. Please can you fill me in on how the policy (see below) has changed to what it was before?
[I]From now onwards any 'New order' placed will be filled if the market trades through the order level including instances where the market gaps through the 'New Order' level on the open of the market.
In certain circumstances fills of New Order levels may differ from the requested fill level due to conditions beyond the control of London Capital Group Ltd. For example, if the relevant underlying market is open and trades through or has opened through the level of an order, commonly known as 'gapping', such orders will be executed at the London Capital Group Ltd quote based upon the first price London Capital Group Ltd are reasonably able to obtain in the underlying market. [/I]
[I]From now onwards any 'New order' placed will be filled if the market trades through the order level including instances where the market gaps through the 'New Order' level on the open of the market.
In certain circumstances fills of New Order levels may differ from the requested fill level due to conditions beyond the control of London Capital Group Ltd. For example, if the relevant underlying market is open and trades through or has opened through the level of an order, commonly known as 'gapping', such orders will be executed at the London Capital Group Ltd quote based upon the first price London Capital Group Ltd are reasonably able to obtain in the underlying market. [/I]
capitalspreads
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abobtrader
originally our fill policy was that if an order was placed after the previous days close but before todays open then it would not not be filled on a gapping and would just be left unexecuted (this did not affect any orders placed before the previous days close no matter when it was placed). The reason for this was because the FX markets were 24hr markets and any order placed by a client during the previous night would require my dealers to check each and every order to see whether it should be activated or not by looking at the graphs and time of sales to confirm the time at which levels were hit etc etc. Obviously this was massively time consuming so we just made a rule that orders placed after the previous close would only be activated if 'Our Quote' actually printed the level required.
Now that the FX is 24 hr from 00.00 Monday to 21.00 Friday this problem no longer exists and we can fill orders on the open in non FX markets, and if the price has gapped through the level of the new order we can fill at the first reasonably available price.
Unfortunately it sounds complicated but is now more in line with market practice.
Simon
originally our fill policy was that if an order was placed after the previous days close but before todays open then it would not not be filled on a gapping and would just be left unexecuted (this did not affect any orders placed before the previous days close no matter when it was placed). The reason for this was because the FX markets were 24hr markets and any order placed by a client during the previous night would require my dealers to check each and every order to see whether it should be activated or not by looking at the graphs and time of sales to confirm the time at which levels were hit etc etc. Obviously this was massively time consuming so we just made a rule that orders placed after the previous close would only be activated if 'Our Quote' actually printed the level required.
Now that the FX is 24 hr from 00.00 Monday to 21.00 Friday this problem no longer exists and we can fill orders on the open in non FX markets, and if the price has gapped through the level of the new order we can fill at the first reasonably available price.
Unfortunately it sounds complicated but is now more in line with market practice.
Simon
abobtrader
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Thanks for the quick response Simon.
FXSCALPER2
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Hello Simon,
Finspreads charged me 3 times the normal over night rate to roll over a position from Wednesday to Thrsday. When I asked, I was told that this is 'normal practice'. Is this true? (I have never bothered to check this before, which goes to show orgainsed I am
). Anyway, is it true that the interest charge is higher on Wednesdays? Apparently this charge is for the week end. eh?
Finspreads charged me 3 times the normal over night rate to roll over a position from Wednesday to Thrsday. When I asked, I was told that this is 'normal practice'. Is this true? (I have never bothered to check this before, which goes to show orgainsed I am
). Anyway, is it true that the interest charge is higher on Wednesdays? Apparently this charge is for the week end. eh?capitalspreads
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fxscalp
Not knowing the exact details in this case it is difficult to be sure of the reason but.... I think what is being done here is that in the real world FX is traded on what is called 'spot' (which means settlement two days forward) so when you trade on a wednesday you are actually settled on friday. And therefore obviously on thursday you would be settled on Monday. Meaning a charge from wed to thurs of 3 days. I was unaware that any SB companies did this but they are quite correct and this probably reflects the fact that they are also a major FX dealer (IFX). When we get larger we will also probably make this change to our platform.
Simon
Not knowing the exact details in this case it is difficult to be sure of the reason but.... I think what is being done here is that in the real world FX is traded on what is called 'spot' (which means settlement two days forward) so when you trade on a wednesday you are actually settled on friday. And therefore obviously on thursday you would be settled on Monday. Meaning a charge from wed to thurs of 3 days. I was unaware that any SB companies did this but they are quite correct and this probably reflects the fact that they are also a major FX dealer (IFX). When we get larger we will also probably make this change to our platform.
Simon
FXSCALPER2
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capitalspreads said:
Thanks Simon. get fractional man so we can trade with you.
capitalspreads
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understandably sometimes things do not go as we would wish. For some reason that we are still investigating we had an outage at 20.20 which lasted for approx 15 mins. Obviously all our clients suddenly want to call us at the same time which meant that there was some delay to answering each call. We did our best to be understanding to clients who lost out as a result and fortunately we still had the audit trail of clients trading activity.
In reality our clients made a great deal of money out of it because they were heavily short and were unable to take their profits until we reopened. Clients normally have a habit of trying to take profits too quickly and in thais case the situation favoured them.
That being said this was not how we wish our platforn to perform and we are looking at what caused the problems so that we can solve them.
simon
In reality our clients made a great deal of money out of it because they were heavily short and were unable to take their profits until we reopened. Clients normally have a habit of trying to take profits too quickly and in thais case the situation favoured them.
That being said this was not how we wish our platforn to perform and we are looking at what caused the problems so that we can solve them.
simon
jezza888
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capitalspreads said:
Just out of interest Simon,
Do you look in more details into where people take/exit positions, esp. any one or two more than another or are these pointers just based on a whole? I realise you have many clients but do any accounts stand out, for better or worse, which get special notice? Not being suspicious, just merely curious....
Jezza
capitalspreads
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jezza
we do occassionally take a look at bigger clients to see what they do, because one guy trading in £200 a point in the dow takes out 40 trading in £4 (our average stake size) . But unless a client is a massive winner/loser we do not take much notice. All we are concerned with is our overall risk levels.
The problem is as soon as we identify a good winner and start to go with him it is almost the kiss of death and the opposite as well, a big loser suddenly cannot move without making money. It really is amazing the variation in P/L swings on individual clients.
simon
we do occassionally take a look at bigger clients to see what they do, because one guy trading in £200 a point in the dow takes out 40 trading in £4 (our average stake size) . But unless a client is a massive winner/loser we do not take much notice. All we are concerned with is our overall risk levels.
The problem is as soon as we identify a good winner and start to go with him it is almost the kiss of death and the opposite as well, a big loser suddenly cannot move without making money. It really is amazing the variation in P/L swings on individual clients.
simon
capitalspreads
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Viseria...
hhhmmmmm............... let me see I have a client, who through lots of analysis or because he is just very good, makes a great deal of money from Capital Spreads every day ..week after week etc etc...(We have a policy of not closing clients just because they are winning) .......... I am sure that my investors would be pleased to know that I did absolutely nothing at all about it !!!
Most people would say that a trade covering a client position was called a 'Hedge' not a prop trade. You cannot have it both ways. I personally would say that not doing anything was a 'Prop' trade as we are then betting that the client is goint to get it wrong or that another client will trade the other way soon.
And anyway why on earth would I want to lose a client who gives us a good 'heads up' on a market? If you had a friend who consistently made money would you not want to make the same trades as him?
Simon
hhhmmmmm............... let me see I have a client, who through lots of analysis or because he is just very good, makes a great deal of money from Capital Spreads every day ..week after week etc etc...(We have a policy of not closing clients just because they are winning) .......... I am sure that my investors would be pleased to know that I did absolutely nothing at all about it !!!
Most people would say that a trade covering a client position was called a 'Hedge' not a prop trade. You cannot have it both ways. I personally would say that not doing anything was a 'Prop' trade as we are then betting that the client is goint to get it wrong or that another client will trade the other way soon.
And anyway why on earth would I want to lose a client who gives us a good 'heads up' on a market? If you had a friend who consistently made money would you not want to make the same trades as him?
Simon
capitalspreads
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visaria
our hedging policy has been commented on extensively in this thread ... we do not go around hegding all our client trades ....we take over 4000 a day ..we would soon waste all our money in broking charges . We wait till our clients positions reach a certain level and then we hedge all risk above that level. (these levels are pre-determined and non flexible).
In products such as UK equities we increasingly find that clients effectively create an index equivalent and we use our computer models to hedge in the most efficient manner.
Simon
our hedging policy has been commented on extensively in this thread ... we do not go around hegding all our client trades ....we take over 4000 a day ..we would soon waste all our money in broking charges . We wait till our clients positions reach a certain level and then we hedge all risk above that level. (these levels are pre-determined and non flexible).
In products such as UK equities we increasingly find that clients effectively create an index equivalent and we use our computer models to hedge in the most efficient manner.
Simon
c6ackp
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Dax Future - Spread
Hi Simon
Quick question - why is the spread on CS's DAX future (June) so wide?
It's 6 times the actual market spread (3 points - actual spread is 0.5).
Is this because this index is not heavily traded by your customers, or some other reason?
Thanks in advance,
c6
Hi Simon
Quick question - why is the spread on CS's DAX future (June) so wide?
It's 6 times the actual market spread (3 points - actual spread is 0.5).
Is this because this index is not heavily traded by your customers, or some other reason?
Thanks in advance,
c6
Simon,
I want to develop a FX model possibly using the FIX API. I know capital forex and capital forex pro offer FIX Api access. what are the approximate accout size minimums of these services. and would I be able to have a demo account for testing before deploying capital for a proper account ?
thanks
I want to develop a FX model possibly using the FIX API. I know capital forex and capital forex pro offer FIX Api access. what are the approximate accout size minimums of these services. and would I be able to have a demo account for testing before deploying capital for a proper account ?
thanks
