Best Thread Capital Spreads

[tar]

Typo's Forthcoming Ex-Dividends

Next Wed only 7.5 points drop at FTSE100 nothing worth at binary trading

 

[stevespray]

How much the averge movement in FTSE100 at WED opening ? Can we take advantage from this movement at binary websites ?!

No, if you think about it no advantage can be gained. Just like I mentioned before, the binary prices are based on the 'determination date' so all xd's are taken into consideration when the particular binary opens.

For example, in last Wednesday case of a 31 point xd, the binary on IG would have opneded with the underlying showing as "-31" and the quote would have reflected this bias as a -31 as it's intrinsic value.

Steve.

 

[zuke]

Were you taking into consideration that there was a 31 point ex dividend on FTSE which, as always, comes out Wednesday mornings?

If you were watching IG then you were watching the 'Cash' price with an expiry for Wednesday's close of business which would obviously have the divi deducted since "Daily Cash Wednesday" has finance and xd discounted in the current price.
You were comparing this with a "Rolling Cash" product which, depending on which platform you use, gets "Rolled" at a specific time. Capital 'roll' their markets after the close. This means that Wednesday's xd wouldnt get deducted until the market shut at 9pm Tuesday evening at which point, if you were short, you would get 31 x stake deduced from your account which you would effectively get back once the ftse gapped lower the next morning. Likewise, if you were long, you would get the divi paid into your account (although Capital only pay 80% of it for some reason!) - You would of couse suffer the 31 point drop on your position when the market reopened.

So the answer to your question is one of 'determination date'. Always be aware of this on a Tuesday evening since FTSE goes ex div on Wednesday morning at the open.

Steve.

Thanks for that Steve...I had a feeling that it was due to the huge div, but still didnt expect the difference to be so big.

 

[migrations]

I have to agree with your statement. The speed of execution, fills, slippage on my account all worsened after a period of very successsful trading with CS. It's the price to pay for success, I suppose. Win and suddenly the game becomes more difficult; lose and you enjoy great execution, perfect fills and virtually no slippage. But is CS any different in this aspect from the other spread bet companies out there?

By the way, is anyone under any illusions as to why CS has disabled (greyed out) its OCO order facility? Certainly not to help us traders.

Can you enlighten me about the kinds of things which became more difficult and how, after the successful period you mention with CS? How much were you betting per point? And how long were your trades? Thanks a lot. Main thing is, did your trading become impossible, or just more tricky?

 

[chiselfx]

Is anyone else having problems logging on to their live account? I have been getting a server error for the past 30 mins.

 

[0007]

Is anyone else having problems logging on to their live account? I have been getting a server error for the past 30 mins.

OK on demo account at time of this post (for what that's worth!)

 

[PipStar]

Can you enlighten me about the kinds of things which became more difficult and how, after the successful period you mention with CS? How much were you betting per point? And how long were your trades? Thanks a lot. Main thing is, did your trading become impossible, or just more tricky?

Trading is more tricky because it takes longer to get filled. Most likely waiting for the dealer to accept, slip or reject the trade. It's not impossible but without automatic and instantaneous fills, you take bigger risks.

 

[davecrom01]

Can you enlighten me about the kinds of things which became more difficult and how, after the successful period you mention with CS? How much were you betting per point? And how long were your trades? Thanks a lot. Main thing is, did your trading become impossible, or just more tricky?

It's a serious issue. It happens once you have had a few good trades, especially if you want to trade intra-day. You just cant get in to the market, as the dealer holds your trade until it goes against you. If you do get in, you're underwater by more than the spread - despite the fact that CS claim "all trades where the price changes by more than the spread will be rejected".

Longer term trades, where you are holding for a day or two, its not as much of an issue as you dont mind your exit being missed to some degree.

I've traded from between £1 and £50 per pip with them to answer your question, and all I can say is that it doesnt happen that much at £1 per pip.

Serioulsy, look elswhere.

Dave

 

[bracke]

Capital Spreads

The problem of a trade being held by one of your traders has been heavily discussed on this thread. If a trade is being held and I wish to cancel the trade is it possible to do so?

 

[davecrom01]

Capital Spreads

The problem of a trade being held by one of your traders has been heavily discussed on this thread. If a trade is being held and I wish to cancel the trade is it possible to do so?

Hello Bracke.

The answer to your question is a 100% "NO".

That is the problem. They get to choose as the price moves and you are in the "pending" state. You DO NOT get the chance to pull it, or cancel it, or alter it in any way during this process.

I would see what they do as quite legitimate IF both sides were able to do it.

Hope that helps,
Dave

 

[stevespray]

Hello Bracke.

The answer to your question is a 100% "NO".

That is the problem. They get to choose as the price moves and you are in the "pending" state. You DO NOT get the chance to pull it, or cancel it, or alter it in any way during this process.

I would see what they do as quite legitimate IF both sides were able to do it.

Hope that helps,
Dave

Legally speaking you should be able to cancel. Your attempt to trade is, in legal terms, "An Offer To Contract" and therefore, by the law of this land, the offer to contract is not binding on you until the other party accepts the offer. Whilst the other party is 'examining your offer' (for want of a better phrase) you are quite entitled to withdraw that offer since no contract has yet been entered into with regard to the offer.

On would also imagine, that if the price improves while they are holding you, that the improved priced should be passed onto you since, at the moment of execution, the price is now better. Is this an issue of best execution? Perhaps. These firms claim that they arent subject to such rules as their prices are their own - this is of course true - what isnt covered is when the price "at their market venue" improves prior to your trade being executed. Seems to be that this is a case of the authorities who make the rules not being fully aware of the situation.

Steve.

 

[adorozlondyn]

capital spread exteram scalping

Hi All,

I'm using CS for last 5 months with live acc.

They are charts freeze when ther is a big move ( i play no the ft100)

So my solution...

i use IG index advance chart for ft100 and standard chart for sp500
they are 2-5 seconds FASTER then Capital :cheesy:spreads.

so my method:
TRADE WITH THE TREND
I'M USING5, 21,75,200 EMA ON ADVANCE CHART
IF PRICE BELOW ALL THE MA BEAR IF ABOVE BULL
BIG RED BAR SELL SHORT and do it opposite in Bull market
GET OUT WITH 3-8 PIPIS.
MY STEAK IS 5 PER PIP AND TARGET 50£ A DAY.

And thats it.

Let me know what you thin especially abut using two companies against each other.

sorry for my english
adam

 

[stevespray]

Hi All,

I'm using CS for last 5 months with live acc.

They are charts freeze when ther is a big move ( i play no the ft100)

So my solution...

i use IG index advance chart for ft100 and standard chart for sp500
they are 2-5 seconds FASTER then Capital :cheesy:spreads.

so my method:
TRADE WITH THE TREND
I'M USING5, 21,75,200 EMA ON ADVANCE CHART
IF PRICE BELOW ALL THE MA BEAR IF ABOVE BULL
BIG RED BAR SELL SHORT and do it opposite in Bull market
GET OUT WITH 3-8 PIPIS.
MY STEAK IS 5 PER PIP AND TARGET 50£ A DAY.

And thats it.

Let me know what you thin especially abut using two companies against each other.

sorry for my english
adam

You're going to make a fortune.

Steve.

 

[nkruger]

MY STEAK IS 5 PER PIP AND TARGET 50£ A DAY.

And thats it.

Let me know what you thin especially abut using two companies against each other.

sorry for my english
adam

Engrish rooks fine to me, old china.....

 

[gle101]

You're going to make a fortune.

Steve.

Really, ha ha! No I haven't seen this kind of delay on CS quote. CS feed is quite fast these days. The chart might be slower, but I haven't found the quote to lag that much.

 

[gle101]

Legally speaking you should be able to cancel. Your attempt to trade is, in legal terms, "An Offer To Contract" and therefore, by the law of this land, the offer to contract is not binding on you until the other party accepts the offer. Whilst the other party is 'examining your offer' (for want of a better phrase) you are quite entitled to withdraw that offer since no contract has yet been entered into with regard to the offer.

On would also imagine, that if the price improves while they are holding you, that the improved priced should be passed onto you since, at the moment of execution, the price is now better. Is this an issue of best execution? Perhaps. These firms claim that they arent subject to such rules as their prices are their own - this is of course true - what isnt covered is when the price "at their market venue" improves prior to your trade being executed. Seems to be that this is a case of the authorities who make the rules not being fully aware of the situation.

Steve.

Yes I agree, this kind of delay should not be allowed without the other party being able to cancel the trade. I am quite sure that MiFID "Best execution" directive was implemented just with this kind of issue in mind.

 

[stevespray]

Really, ha ha! No I haven't seen this kind of delay on CS quote. CS feed is quite fast these days. The chart might be slower, but I haven't found the quote to lag that much.

I was being sarcastic! I wasnt suggesting a price lag.

Steve.:cheesy:

 

[gle101]

I was being sarcastic! I wasnt suggesting a price lag.

Steve.:cheesy:

Yes I knew you were jokeing Steve.

 

[davecrom01]

Legally speaking you should be able to cancel. Your attempt to trade is, in legal terms, "An Offer To Contract" and therefore, by the law of this land, the offer to contract is not binding on you until the other party accepts the offer. Whilst the other party is 'examining your offer' (for want of a better phrase) you are quite entitled to withdraw that offer since no contract has yet been entered into with regard to the offer.
------------------

Hi Steve.

The line from CS is that "all trades, whether they move adversely or favourably during dealer intervention, are rejected if they are out by more than the spread". '

So, in effect, you should never see a trade go into open positions with a starting p&l of more or less than the spread. This is not the case with CS.

You do not see a trade open with a favourable P&L if the price has moved since you pressed the deal button. This would be inline with their stated practice and would be acceptable.

However, you do MOST CERTAINLY see trades with an opening P&L equal to a loss greater than the spread on the instrument.

 

[stevespray]

Dave - I understand this. The problem with this is that the client is more likely to feel cheated and remember the fills against rather than the fills where the order may have been rejected. To my mind the solution is amazingly straight forward - The firm retain the right to reject orders which have moved against them whilst the client retains the right to have orders fill in their favour when the better price becomes available - Is this concept so hard?

So, for example....

Quote on Dow is 12,150 - 12,154....

Scenario A
The client enters a buy order to buy £10 @ 12,154....
Time passes....
The dealer then see's the order but the price in the market is now 12,160 - 12,164....
The dealer rejects the order under "The Price Is No Longer Valid"....
Outcome - No Trade.

Scenario B
The client places a buy order to buy £10 @ 12,154....
Time passes....
Then dealer then see's the order but the price in the market is now 12,140 - 12,146....
The dealer accepts the order since the price is as good or better than the level set in the clients instruction.
Outcome - Trade Open Long @ 12,146.

It's a straight forward 'Fill or Kill' order just like in the real market.

Steve.