Stops / Capital Spreads
I was trying to figure out what price Capital Spreads use for there stop (buy, sell or middle).
I spoke to the Customer Sevice there yesterday and got an unconvincing answer that if you are buy the stop will be the sell and visa versa.
I was trying to figure out what price Capital Spreads use for there stop (buy, sell or middle).
I spoke to the Customer Sevice there yesterday and got an unconvincing answer that if you are buy the stop will be the sell and visa versa.
Capitalspreads/simon
As your aim is to offer the best spreads are you aware that in the case of the FTSE daily/cash you no longer match the spread offered by CMC who have reduced the spread down to 2 points.
Apparently IGIndex who tend to adopt wide spreads have introduced an hourly FTSE bet with a spread of 2 points.
To my knowledge Capitalspreads was the only SB to match CMC for tight spreads on the FTSE does this mean you might consider following CMC in respect of the FTSE. As more competition has entered this field the service for the customer has been forced to improve. With a spread of 2 points being offered on the FTSE it cannot get much better from a SB for fair value.
As your aim is to offer the best spreads are you aware that in the case of the FTSE daily/cash you no longer match the spread offered by CMC who have reduced the spread down to 2 points.
Apparently IGIndex who tend to adopt wide spreads have introduced an hourly FTSE bet with a spread of 2 points.
To my knowledge Capitalspreads was the only SB to match CMC for tight spreads on the FTSE does this mean you might consider following CMC in respect of the FTSE. As more competition has entered this field the service for the customer has been forced to improve. With a spread of 2 points being offered on the FTSE it cannot get much better from a SB for fair value.
donaldduke
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Dont believe just because spreads have tightened you will
get a better deal.
Ill bet CMC will increase the number of times they requote as a result of this.
capitalspreads
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Kevin
we do not match D4F on every product because they quote a rolling bet not a closing one day bet. This means that a bet with D4F must be traded out of again on their 2 point wide spread whereas a bet with us closes at the expiry price of the FTSE (ie zero (nought,nil,zip) spread) so that although your entry price may be 3 with us your exit may be free.
As per my comments earlier in this board we at CS do our best to match or better our rivals (if you check our quarterly share prices you will see good examples all over the place) but we must be compared on like for like products.
D4F offer a fine service to the market , we offer just as good a service but in slightly different products.
Simon
we do not match D4F on every product because they quote a rolling bet not a closing one day bet. This means that a bet with D4F must be traded out of again on their 2 point wide spread whereas a bet with us closes at the expiry price of the FTSE (ie zero (nought,nil,zip) spread) so that although your entry price may be 3 with us your exit may be free.
As per my comments earlier in this board we at CS do our best to match or better our rivals (if you check our quarterly share prices you will see good examples all over the place) but we must be compared on like for like products.
D4F offer a fine service to the market , we offer just as good a service but in slightly different products.
Simon
Donaldduke
You may well be right however for my own part whenever I trade at or below £25 on the FTSE index I have never been re-quoted always an instant fill. It is only when I have traded in larger sizes that the delay and re-qoutes appear.
It is odd because people have complained about placing £10 deals on shares and being given the run around I can only speak about my own experience. As far as I am concerned a 2 point spread is a much better deal that it used to be especially in the days of 5 or 6 points and that was what I meant by fairer value in relation to the gap between what is offered by SB's and the exchange with Futures on the FTSE index. I trade and chart their price so that is what I act on and not the relationship between SB price v exchange. All I know is I now only need the thing to move 3 points and I am in profit compared to the days of much more. It also means I can place a tighter stop!
Simon
I am probably showing how limited my knowledge of spreads are but if I take a deal with you and close it before the end of the day how am I going to return a nil spread. I day trade and close all deals before the close so with D4F if I have bought I am quoted on the current sell price when I come to sell, which is a 2 point spread, with you it is 3. I do not rollover deals but take a monthly or quarter if I am of a mind to. I am not picking fault with your comments I would just like to understand them. If it can improve my position then of course I would be interested.
Kevin
You may well be right however for my own part whenever I trade at or below £25 on the FTSE index I have never been re-quoted always an instant fill. It is only when I have traded in larger sizes that the delay and re-qoutes appear.
It is odd because people have complained about placing £10 deals on shares and being given the run around I can only speak about my own experience. As far as I am concerned a 2 point spread is a much better deal that it used to be especially in the days of 5 or 6 points and that was what I meant by fairer value in relation to the gap between what is offered by SB's and the exchange with Futures on the FTSE index. I trade and chart their price so that is what I act on and not the relationship between SB price v exchange. All I know is I now only need the thing to move 3 points and I am in profit compared to the days of much more. It also means I can place a tighter stop!
Simon
I am probably showing how limited my knowledge of spreads are but if I take a deal with you and close it before the end of the day how am I going to return a nil spread. I day trade and close all deals before the close so with D4F if I have bought I am quoted on the current sell price when I come to sell, which is a 2 point spread, with you it is 3. I do not rollover deals but take a monthly or quarter if I am of a mind to. I am not picking fault with your comments I would just like to understand them. If it can improve my position then of course I would be interested.
Kevin
Kevin,
Regarding the spike I wrote about before I thought you may be interested to know the final outcome. I asked LIFFE for information regarding that particular spike and part of their reply was as follows:-
"The actual drop in the market was caused by a number of sell orders, and the market traded at multiple levels during this drop. Because the drop was caused by multiple sell orders, and the market traded at various levels on the way down, it was deemed to be a fair and orderly market, therefore the trades all stood. It should be mentioned that the market was very volatile at this time, and the order book depth of market was very 'thin' "
So to be fair to the SB firm I suppose they acted according to LIFFE. However after ongoing discussions with the SB Firm they have as of today reinstated my original trade as an act of goodwill. So I am very pleased at the outcome and hats off to them now. 😀
Regarding the spike I wrote about before I thought you may be interested to know the final outcome. I asked LIFFE for information regarding that particular spike and part of their reply was as follows:-
"The actual drop in the market was caused by a number of sell orders, and the market traded at multiple levels during this drop. Because the drop was caused by multiple sell orders, and the market traded at various levels on the way down, it was deemed to be a fair and orderly market, therefore the trades all stood. It should be mentioned that the market was very volatile at this time, and the order book depth of market was very 'thin' "
So to be fair to the SB firm I suppose they acted according to LIFFE. However after ongoing discussions with the SB Firm they have as of today reinstated my original trade as an act of goodwill. So I am very pleased at the outcome and hats off to them now. 😀
Jaykay3
I am pleased to hear that you have been treated fairly, even if they had met you half way I don't think you could grumble, which is what I call having a reasonable customer service approach.
I do feel that the FTSE to drop over 100 points on a wrong order with others jumping on is still a bit thin from LIFFE but then this is a risky game.
Thanks for the update.
Kevin
I am pleased to hear that you have been treated fairly, even if they had met you half way I don't think you could grumble, which is what I call having a reasonable customer service approach.
I do feel that the FTSE to drop over 100 points on a wrong order with others jumping on is still a bit thin from LIFFE but then this is a risky game.
Thanks for the update.
Kevin
bottomdollar
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A quick question regarding Capital Spreads
Hi All,
I have been trialling Capital Spreads with the dummy account and I love the platform... it is quick, reliable, robust etc etc. I am now seriously considering opening a proper account...
However, a question to those who have already signed up.. is the proper account EXACTLY the same as the dummy account (except, of course, this time it's real money)... is it just as reliable and quick? I've felt in the past with certain firms the test drive is fantastic but when you get the real thing, it's never as good..
Thanks all 🙂
BD
Hi All,
I have been trialling Capital Spreads with the dummy account and I love the platform... it is quick, reliable, robust etc etc. I am now seriously considering opening a proper account...
However, a question to those who have already signed up.. is the proper account EXACTLY the same as the dummy account (except, of course, this time it's real money)... is it just as reliable and quick? I've felt in the past with certain firms the test drive is fantastic but when you get the real thing, it's never as good..
Thanks all 🙂
BD
adrianallen99
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Some of the spreads are wider on the real account over the simulation account or they were when I tried it. I know the NASDAQ 100 spread was or is.
bottomdollar
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thanks
Just wondering who owns Capital Spreads.. is the parent company a biggie?
Just wondering who owns Capital Spreads.. is the parent company a biggie?
peto
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Just wondering who owns Capital Spreads.. is the parent company a biggie?....
"Capital Spreads is the spread betting division of London Capital Group, a well established broking and proprietary trading company based in the City of London. London Capital Group is a privately owned organisation active in many world financial markets. "............... from their website
"Capital Spreads is the spread betting division of London Capital Group, a well established broking and proprietary trading company based in the City of London. London Capital Group is a privately owned organisation active in many world financial markets. "............... from their website
bottomdollar
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Grubs you're right but I was just curious as to the financial standing of the firm.. what if the spreadbetters start making money and Capital Markets have to pay out loads.. can they withstand a few million squid hit?
Well, chances are that people lose with SB but even so... 🙂
Well, chances are that people lose with SB but even so... 🙂
bottomdollar
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Looking back at some of the posts, to be honest, I would be happy without Capital Spreads' charts if they can maintain their excellent platform they way it is.. fast, speedy, reliable etc. Most people like to use their own charting package anyway!
donaldduke
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capitalspreads,
A lot has been said about the SB companies wanting their
clients to lose money..
What is capitalspreads position on this ie,
What percentage of your profits comes from hedged and
positions and how much will come from unhedged
positions (client losses)...
Do you have an rules.. like this client is a consistent losers dont
bother to hedge him, while this guy wins overall so we better not
take the otherside of his trades...
I found this in Cantors broucher:
"We aim to hedge all client bets in the underlying markets.
This distinction between Cantor Index and most of our
competitors implies we do not profit when you lose. In
other words we really do want you to win and, therefore
sincerely wish you every success in your dealing."
A lot has been said about the SB companies wanting their
clients to lose money..
What is capitalspreads position on this ie,
What percentage of your profits comes from hedged and
positions and how much will come from unhedged
positions (client losses)...
Do you have an rules.. like this client is a consistent losers dont
bother to hedge him, while this guy wins overall so we better not
take the otherside of his trades...
I found this in Cantors broucher:
"We aim to hedge all client bets in the underlying markets.
This distinction between Cantor Index and most of our
competitors implies we do not profit when you lose. In
other words we really do want you to win and, therefore
sincerely wish you every success in your dealing."
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Capitalspreads
I maybe wrong but I was under the impression that the prices for the daily indicies and FX are worked out on a cash formula this therefore means that your own price mirrors that of the exchange price with a point or 2 difference but generally the same pattern over the day.
This being the case how can you have a situation where the true FX price moves 15 points into profit yet your own position does not move out of the spread. It was at a point of resistance and the FX did respond by failing back. This suggests that the price can be different for a number of reasons rather than just a formula otherwise the FX would not have moved away from your own price as it did.
I am sure there is a valid explanation for this and would be interested to learn what it is.
I maybe wrong but I was under the impression that the prices for the daily indicies and FX are worked out on a cash formula this therefore means that your own price mirrors that of the exchange price with a point or 2 difference but generally the same pattern over the day.
This being the case how can you have a situation where the true FX price moves 15 points into profit yet your own position does not move out of the spread. It was at a point of resistance and the FX did respond by failing back. This suggests that the price can be different for a number of reasons rather than just a formula otherwise the FX would not have moved away from your own price as it did.
I am sure there is a valid explanation for this and would be interested to learn what it is.
capitalspreads
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donaldduke
we do genuinely want our customers to win !
we hedge every position as we get them especially in shares fx and commodities. In the indices if we get a position and it moves our way immediately then we may sit and run with it but only in small size.
If our customers lose then we are forever having to replace dead accounts with new ones.
But in reality does it really matter to you, the customer, if we hedge all our positions. The fact that we will have lost in our hedge does not mitigate the loss that you have made yourself.
If a client was a consistently bad trader then, of course, we may identify him and leave his positions unhedged. We are a business after all. Up to date we have had one customer who was so consistently terrible that we just ignored everything he did.
On another note we get taxed on the net client loses which cannot be offset with hedged loses so if our clients lost a large sum of money we would get a hefty tax bill !
I cannot comment on profitability analysis , sorry. But I can definately say that most of our profit comes from 'spread'.
In cannot comment on Cantors policy (although I would recommend that you read your own question to me)
Kevin 546
with D4F to exit a bet you must trade out on their spread no matter how long you hold the position. If you have a daily bet with us in the FTSE it expires at the closing level of the FTSE that day with no additional spread added. This of course transfers the position to us to try to get out of in the market. (something that can be very costly to us).
simon
we do genuinely want our customers to win !
we hedge every position as we get them especially in shares fx and commodities. In the indices if we get a position and it moves our way immediately then we may sit and run with it but only in small size.
If our customers lose then we are forever having to replace dead accounts with new ones.
But in reality does it really matter to you, the customer, if we hedge all our positions. The fact that we will have lost in our hedge does not mitigate the loss that you have made yourself.
If a client was a consistently bad trader then, of course, we may identify him and leave his positions unhedged. We are a business after all. Up to date we have had one customer who was so consistently terrible that we just ignored everything he did.
On another note we get taxed on the net client loses which cannot be offset with hedged loses so if our clients lost a large sum of money we would get a hefty tax bill !
I cannot comment on profitability analysis , sorry. But I can definately say that most of our profit comes from 'spread'.
In cannot comment on Cantors policy (although I would recommend that you read your own question to me)
Kevin 546
with D4F to exit a bet you must trade out on their spread no matter how long you hold the position. If you have a daily bet with us in the FTSE it expires at the closing level of the FTSE that day with no additional spread added. This of course transfers the position to us to try to get out of in the market. (something that can be very costly to us).
simon
