Best Thread Capital Spreads
capitalspreads
Experienced member
- Messages
- 1,452
- Likes
- 79
answer as many as possible
Jaykay3
the dow was down twice today not because the market was moving but because our data provider lost the connection to the CBOT as our other markets are not linked from this exchange they were not affected.
darrenf
our spreads should be 4 on eur/usd and 5 on gbp/usd but sometimes the computer puts a wider (or narrower) spread if the price feed from our bank suppliers is different. We have no manual input to the price feeds, although we do manually approve currency trades.
kevinmcm
we are looking at adding further currencies but for the moment the major crosses are hair raising enough.
darrenf (again)
Our system does not yet have if done capability. you may place opening (or closing) orders at your preferred levels. But you will then have to add in limit orders yourself. A stop order will be automatically set by the computer.
The minimum stop levels may be adjusted in some of the more liquid markets (ie the S&P) but in the less liquid markets if client placed stops too close we would be forever stopping clients on tiny moves.
Simon
ps if I have missed someone please ask again.
Jaykay3
the dow was down twice today not because the market was moving but because our data provider lost the connection to the CBOT as our other markets are not linked from this exchange they were not affected.
darrenf
our spreads should be 4 on eur/usd and 5 on gbp/usd but sometimes the computer puts a wider (or narrower) spread if the price feed from our bank suppliers is different. We have no manual input to the price feeds, although we do manually approve currency trades.
kevinmcm
we are looking at adding further currencies but for the moment the major crosses are hair raising enough.
darrenf (again)
Our system does not yet have if done capability. you may place opening (or closing) orders at your preferred levels. But you will then have to add in limit orders yourself. A stop order will be automatically set by the computer.
The minimum stop levels may be adjusted in some of the more liquid markets (ie the S&P) but in the less liquid markets if client placed stops too close we would be forever stopping clients on tiny moves.
Simon
ps if I have missed someone please ask again.
Fair Enough Simon.
I have deleted my post as your explanation seemed reasonable enough. Does it happen often ? I maybe jumped to conclusions as it seemed to be happening at critical times and there is another thread running at the moment about another SB firm who seem to have been pulling a trick or two. Fills your head full of suspicion.
Sorry if yours was a genuine occurrence - you do come across as a pretty decent guy on this BB - always taking the time to answer questions.
I have deleted my post as your explanation seemed reasonable enough. Does it happen often ? I maybe jumped to conclusions as it seemed to be happening at critical times and there is another thread running at the moment about another SB firm who seem to have been pulling a trick or two. Fills your head full of suspicion.
Sorry if yours was a genuine occurrence - you do come across as a pretty decent guy on this BB - always taking the time to answer questions.
Spreadex/binary bets
Hi there, new to this website and just wondering why noone uses Spreadex??
i've used them for a year now and i've had no problems. The dealers are friendly and fast. Their spreads are on a par with cantors/IG but they've got low NTRs.
it's interestigg to read everyone's comments about the binary bets with IG /betfair but spreadex offer them too.
Do Capital spreads have any intention of offering these?
cheers, JK
Hi there, new to this website and just wondering why noone uses Spreadex??
i've used them for a year now and i've had no problems. The dealers are friendly and fast. Their spreads are on a par with cantors/IG but they've got low NTRs.
it's interestigg to read everyone's comments about the binary bets with IG /betfair but spreadex offer them too.
Do Capital spreads have any intention of offering these?
cheers, JK
Last edited:
capitalspreads
Experienced member
- Messages
- 1,452
- Likes
- 79
JK
In most markets our spreads are significantly better than IG or Cantors. If you are a regular dealer you will be paying hundreds / thousands of pounds away in extra spread every month.
As the saying goes , "we have the technology" to offer binaries on our platform. But at the moment not the inclanation.
I realise that Binary bets are very popular at the moment, but I would like to hear from anyone who has consistently made money using them. On a 100 index the general quote is from 6 to 4 points. (i.e. a price spread of 4 to 6 %).
I believe the unique ability to make (lose) sizable amounts on a small price move is blinding the participants to the huge sums that are being paid away in spread.
We will offer binaries towards the third quarter of this year as we (obviously) cannot afford to miss out on such a lucrative market.
Simon
In most markets our spreads are significantly better than IG or Cantors. If you are a regular dealer you will be paying hundreds / thousands of pounds away in extra spread every month.
As the saying goes , "we have the technology" to offer binaries on our platform. But at the moment not the inclanation.
I realise that Binary bets are very popular at the moment, but I would like to hear from anyone who has consistently made money using them. On a 100 index the general quote is from 6 to 4 points. (i.e. a price spread of 4 to 6 %).
I believe the unique ability to make (lose) sizable amounts on a small price move is blinding the participants to the huge sums that are being paid away in spread.
We will offer binaries towards the third quarter of this year as we (obviously) cannot afford to miss out on such a lucrative market.
Simon
donaldduke
Experienced member
- Messages
- 1,665
- Likes
- 260
capitalspreads,
How do plan to hedge with binary bets?
Do you know how IG and others are hedging?
Or will you bother to even hedge at all?
How do plan to hedge with binary bets?
Do you know how IG and others are hedging?
Or will you bother to even hedge at all?
capitalspreads
Experienced member
- Messages
- 1,452
- Likes
- 79
As I have said before I cannot comment on what other SB companies may or may not do.
to create two way trade in binaries we would aggressively move the volatilities to reflect the level and direction of customer interest. but in the main because the SBs get so much binary trade the level of hedging is minimal.
In the long run with a spread of 4-6% on the price we would not need to hedge at all. The bad days would be more than compensated for by the good and average days.
As I said binary betting is money for old rope for the SBs. (and hopefully for us at CS in the fullness of time)
good luck (in binary betting you will need it!!)
Simon
to create two way trade in binaries we would aggressively move the volatilities to reflect the level and direction of customer interest. but in the main because the SBs get so much binary trade the level of hedging is minimal.
In the long run with a spread of 4-6% on the price we would not need to hedge at all. The bad days would be more than compensated for by the good and average days.
As I said binary betting is money for old rope for the SBs. (and hopefully for us at CS in the fullness of time)
good luck (in binary betting you will need it!!)
Simon
donaldduke
Experienced member
- Messages
- 1,665
- Likes
- 260
capitalspreads,
This is what i thought.
Did you know that IG put out spreads on NDX of up to 12points...
And SPX and DOW of up to 8 points..
Talk about a licence to print money...
This is what i thought.
Did you know that IG put out spreads on NDX of up to 12points...
And SPX and DOW of up to 8 points..
Talk about a licence to print money...
stevespray
Experienced member
- Messages
- 1,289
- Likes
- 156
Simon - Firstly, its good to see someone from a spreadbet firm taking an active interest in the BB.
Secondly, I would largely agree with what you say about peoples sudden interest in the world of binary bets. It does seem to be taking off in a very big way, as I'm sure you are aware IG has a special site dedicated purely to binary bets. On the subject of spreads you are correct, the spread is normally always around 4% (or more) which is very large in terms of what is available on other instruments. I'm really interested to know why people are showing this amount of interest in these products - surely they are nearer to gambling than to trading ? If people are interested in a lower risk then they should look at some of the bets offered by betonmarkets.co.uk as the offer some up / down bets with much tigher spreads (like 2%). With BoM you also have the benifit of fixed odds so you know exactly how much you can lose.
Moving back to binary bets - I'm interested in how much the companies offering these products vary their risk valuations on the bets on days like today. For example, IG at 2.40pm were offering FTSE to finish up at 93 to buy when FTSE was already up about 26 points. I'm thinking that prehaps their quotation model was still taking into account the exposure the UK market has during the first 2 hours of US trading on a normal market day. I have noticed several times now that quite often on US holidays when markets are shut that IG may not be taking the likelyhood of a lack of afternoon volitility into account when pricing at around 1pm - 2.45pm.
Any thoughts on the subject ?
Steve.
Secondly, I would largely agree with what you say about peoples sudden interest in the world of binary bets. It does seem to be taking off in a very big way, as I'm sure you are aware IG has a special site dedicated purely to binary bets. On the subject of spreads you are correct, the spread is normally always around 4% (or more) which is very large in terms of what is available on other instruments. I'm really interested to know why people are showing this amount of interest in these products - surely they are nearer to gambling than to trading ? If people are interested in a lower risk then they should look at some of the bets offered by betonmarkets.co.uk as the offer some up / down bets with much tigher spreads (like 2%). With BoM you also have the benifit of fixed odds so you know exactly how much you can lose.
Moving back to binary bets - I'm interested in how much the companies offering these products vary their risk valuations on the bets on days like today. For example, IG at 2.40pm were offering FTSE to finish up at 93 to buy when FTSE was already up about 26 points. I'm thinking that prehaps their quotation model was still taking into account the exposure the UK market has during the first 2 hours of US trading on a normal market day. I have noticed several times now that quite often on US holidays when markets are shut that IG may not be taking the likelyhood of a lack of afternoon volitility into account when pricing at around 1pm - 2.45pm.
Any thoughts on the subject ?
Steve.
capitalspreads
Experienced member
- Messages
- 1,452
- Likes
- 79
Steve
you could be right there. In normal market conditions there is a distinct possibility that the US will drag the FTSE into negative terratory even from a 25 surplus in 2 hours. But as you say this would appear to be unlikely on a US holiday. It would be interesting to have an historical analysis of european afternoon volatility on US holidays.
On the other hand I know the guys round at IG and they are nobodies fools so the risk analysis was in all probability correct. I have lost count of the number of seemingly surefire money making situations that have ended up losing.
You could build a probablity matrix to show correlation of european/us trading patterns in and out of hours and narrow the time scale down to an hourly risk.
I have to admit that I am not a binary trading expert so would be a bit flumoxed on the maths.
Simon
you could be right there. In normal market conditions there is a distinct possibility that the US will drag the FTSE into negative terratory even from a 25 surplus in 2 hours. But as you say this would appear to be unlikely on a US holiday. It would be interesting to have an historical analysis of european afternoon volatility on US holidays.
On the other hand I know the guys round at IG and they are nobodies fools so the risk analysis was in all probability correct. I have lost count of the number of seemingly surefire money making situations that have ended up losing.
You could build a probablity matrix to show correlation of european/us trading patterns in and out of hours and narrow the time scale down to an hourly risk.
I have to admit that I am not a binary trading expert so would be a bit flumoxed on the maths.
Simon
stevespray
Experienced member
- Messages
- 1,289
- Likes
- 156
I imagine that there maybe two ways of creating such a market...
1) Probability Matrix as you have indicated then factor in order book to give your market relevent weightings.
or ...
2) Calculate it as a short term option which is really what it is. As time passes the price of the market becomes a stronger and stronger factor and obviously time becomes less of a factor.
As you say, I'm sure IG are nobodies fools but I like to try and stay one step ahead. Myself and a friend did actually develop some Excel stuff to map probabilites of 1/2 hour movements in the SPX cash markets. These spreadsheets were for us with BetOnMarkets as the do offer an almost 50/50 bet on weather the market will rise / fall in any given 1/2 hour. The system did work very well up until just before the last Gulf war started. It seems that the market can clearly enter situations where it is more news driven. Everytime Bush got up to talk spoos would fall 3 points. The problem was you never knew when he was going to start speaking. Of course what all the different war related news items did was to make the markets movement more random (less predictable in a given time frame).
I could well be that the markets are 'back to normal' now so I may take a further look if I get time. The thing with BoM is that with a bet very close to 50/50 you only need to develop a system with a slight edge and you can tick over quite nicely. So as you can see, whenever something new comes out I like to try and look at things from different angles to see if the punter might be able to gain a slight advantage that the bookie hadnt thought of.
Steve.
1) Probability Matrix as you have indicated then factor in order book to give your market relevent weightings.
or ...
2) Calculate it as a short term option which is really what it is. As time passes the price of the market becomes a stronger and stronger factor and obviously time becomes less of a factor.
As you say, I'm sure IG are nobodies fools but I like to try and stay one step ahead. Myself and a friend did actually develop some Excel stuff to map probabilites of 1/2 hour movements in the SPX cash markets. These spreadsheets were for us with BetOnMarkets as the do offer an almost 50/50 bet on weather the market will rise / fall in any given 1/2 hour. The system did work very well up until just before the last Gulf war started. It seems that the market can clearly enter situations where it is more news driven. Everytime Bush got up to talk spoos would fall 3 points. The problem was you never knew when he was going to start speaking. Of course what all the different war related news items did was to make the markets movement more random (less predictable in a given time frame).
I could well be that the markets are 'back to normal' now so I may take a further look if I get time. The thing with BoM is that with a bet very close to 50/50 you only need to develop a system with a slight edge and you can tick over quite nicely. So as you can see, whenever something new comes out I like to try and look at things from different angles to see if the punter might be able to gain a slight advantage that the bookie hadnt thought of.
Steve.
stevespray
Experienced member
- Messages
- 1,289
- Likes
- 156
Just had this company drawn to my attention....
www.spreadright.com
anyone got any feedback ?
Steve.
www.spreadright.com
anyone got any feedback ?
Steve.
stevespray
Experienced member
- Messages
- 1,289
- Likes
- 156
ah - seems like a "mini IG Index site"
Steve.
Steve.
donaldduke
Experienced member
- Messages
- 1,665
- Likes
- 260
This seems to be run by IG Index,
They are obviously targeting the small end of
the market, ie small bet sizes 50p etc.
Its seems they want the big players to use IG Index.
If you give them different phone numbers and email address
to contact for example this will prevent the small players from
hogging the lines at IG.
They are obviously targeting the small end of
the market, ie small bet sizes 50p etc.
Its seems they want the big players to use IG Index.
If you give them different phone numbers and email address
to contact for example this will prevent the small players from
hogging the lines at IG.
stevespray
Experienced member
- Messages
- 1,289
- Likes
- 156
Or maybe the high end of the business is falling off and they need to start to draw revenue from other sources. Most of their competition allow bets of all sizes from £1 up so I guess it makes sense to try and draw clients in at an earlier stage of their trading careers.
Steve.
Steve.
donaldduke
Experienced member
- Messages
- 1,665
- Likes
- 260
If that was the case they would just drop the minimum bet
sizes on their main site..
They obviously want a bit of the low end pie too, and might
even offer tighter spreads at the low end and not hedge as
many bets because nearly all undercapitalized punters lose.
sizes on their main site..
They obviously want a bit of the low end pie too, and might
even offer tighter spreads at the low end and not hedge as
many bets because nearly all undercapitalized punters lose.
Capital Spreads
Thanks for anwering my earlier question on whether you will introduce bibary bets. you say the technology is there already but will you be able to work orders on these markets??
As i said before i use Spreadex (must be the only one on here!) and i have found them extremely good, although you can't place orders on binaries. You can on all other instruments though and i've always been filled at the requestd level. I've never traded with IG's binaries just because i am happy with my current service.
you commented on the spread of the other companies and how much i'd save with you. However, i am not a massive trader and probably wouldn't save that much.
low NTRs and a good service attracted me to Spreadex which has kept me loyal. i find the 4 pt spreads on the UP/DOWN/UNCH markets acceptable as it is more likely to move quicker than other instruments.
be interested to see what others think...
Thanks for anwering my earlier question on whether you will introduce bibary bets. you say the technology is there already but will you be able to work orders on these markets??
As i said before i use Spreadex (must be the only one on here!) and i have found them extremely good, although you can't place orders on binaries. You can on all other instruments though and i've always been filled at the requestd level. I've never traded with IG's binaries just because i am happy with my current service.
you commented on the spread of the other companies and how much i'd save with you. However, i am not a massive trader and probably wouldn't save that much.
low NTRs and a good service attracted me to Spreadex which has kept me loyal. i find the 4 pt spreads on the UP/DOWN/UNCH markets acceptable as it is more likely to move quicker than other instruments.
be interested to see what others think...
stevespray
Experienced member
- Messages
- 1,289
- Likes
- 156
Does anyone in here do any Binary Bets ? They do get the odd mention from time to time ? I have a number of theories I'd like to discuss.
Steve.
Steve.
