Best Thread Capital Spreads

[stevespray]

By 'ownership' I was really refering to trading the instrument 'directly' on one exchange or another and hence actually having the contractual ownership pass from one party to another.

 

[arabianights]

on the exchange your counterparty for every trade is the clearing house :smart:

 

[capitalspreads]

so with a spread betting company you also have a counterparty (i.e the SB company) .... no different to having the contract with an exchange..... the contractual obligation is the same.

Oddly enough the SB company might be considered to be actually a better risk (!) as we must have liquid funds in segregated accounts to offset all 'winning' bets (at all times) and cannot use losing bets as collateral. The Exchanges merely offset the risk from one party (the buyer) versus the seller.

just because they are bigger than us does not necesarily imply safety. (RBS was quite a big bank a few months ago).

simon

 

[arabianights]

You wanna guarantee if LCH goes down LCG will remain solvent?

 

[capitalspreads]

as we have no counterparty risk with them LCG should be fine BUT the whole point is that whilst LCG as a company might be in trouble if a counterparty failed to pay us... our clients money would be safe. Try telling that to Lehman depositors/bond holders/counterparty trade holders.

Simon

 

[gooseman]

i think you are slightly missing the point there. the fact is to have an open position on an exchange you need to post margin to your clearer who basically guarantees the counterparty risk on exchnage. the lehmans counterparties who didn't get money back were OTC counterparties.

 

[TomTom]

One word for SB Firms that is Buckect Shops.

SB are good when people want to get to know the markets, however when you start to take BIG BUCKS from these firms, many trcks and underhanded obsticals will come in to play.

This goes for all SB firms, Im not singling out CS.

 

[gooseman]

if you are trying to scalp these firms and arb them off then i think they are well within their right to make it difficult to trade. they are not going to give you money after all are they. if you become that big get on the exchange. alternatively trade properly by taking a view and trading then these firms can get the hedge away and be happy to have you making money.

 

[Phil Mibbutz]

if you are trying to scalp these firms and arb them off then i think they are well within their right to make it difficult to trade. they are not going to give you money after all are they. if you become that big get on the exchange. alternatively trade properly by taking a view and trading then these firms can get the hedge away and be happy to have you making money.

Ah, so you admit that they do make it difficult to trade? If so, why don't the SB firms specify what 'proper' trading is in their T&Cs, which would save potential clients time and money?

 

[gooseman]

i don't admit to anything as i know nothing about spread betting companies......just applying common sense.

 

[Jbat001]

Simon,

Saw you on News at Ten last night - came across very well indeed, sir!

 

[TomTom]

Hey IM not into arbing SB firms.
What I do is place limmit orders in a particular direction at 3-5 point gaps.
I do this when I expect a sudden rally, these limmit orders can start at £200, then £300 and so on.
When there is a nice profit I simply start taking some of the chips of the table.
SB Firms do not like to see clients generate large amounts in small times scales, it is then when the tricks, underhanded tackticks come in to play.

Dont get me wrong, SB firms have there uses, but not to be messed with if your going to agressively take money from them.

Some SB Firms now have limmits on how much one can have on any one particular postion/trade.

When using this method it is not uncomon for a £3k per point postion to be aquired so profits can be high when the market is rising fast in your directon.

The SB firm will be happy to close loosing trades, then again it only takes one of these type of trade per day/week to wipe out any profits for the SB firm.

How would you like it if you had worked all week at a SB Firm only for some smart ass to place limmit orders on a sudden rally and wipe out all your profits, it is not nice poor SB Firms.

 

[Phil Mibbutz]

How would you like it if you had worked all week at a SB Firm only for some smart ass to place limmit orders on a sudden rally and wipe out all your profits, it is not nice poor SB Firms.

My heart bleeds for them

 

[tar]

place limmit orders on a sudden rally .

I was thinking of this techneqe , i like it but how u do it ? on which instrument ? thanks

 

[stevespray]

I was thinking of this techneqe , i like it but how u do it ? on which instrument ? thanks

I am sure that he must mean 'stop orders' and not 'limit orders'.

 

[tar]

I am sure that he must mean 'stop orders' and not 'limit orders'.

Yeah ofcourse ( order to open at a worse price )

 

[TomTom]

Yes place buy or sell stop orders to kick you in with SB Firms

Or with a turbo trader platform click on a price you want to but on the level2 streaming prices, or set a default ordering buy at 3pts higher with a trailing stop of 7 pts below the entry point to lock in profits.
Turbo Trader Platform.

Best times are like NFP, Michegan, Biege Book, consumer sentiment ect, if the market dose not react to your plan you have lossed nothing, if it dose your postioned in advance to take profits on the move.

Helping traders to get the most out of there SB acounts

 

[Trader1UK]

Hi,
Im opening an account soon, Capital Spreads or another broker?

Thanks

 

[KillPhil08]

Another broker...

 

[Trader1UK]

I meant, Capital Spreads or another Spreadbet company?