Best Thread Capital Spreads

[capitalspreads]

jp1966

it is tax free no matter how many times you trade.

the spreads in the ECN's are not as good as many like to say. For much of the last few months in 08 and the first few in 09 the spreads on markets like Cable and GBP/EUR were (and still are on occassion) far wider than the fixed 3 points on CS.

ns1000 is correct, a scalper will buy off CS at say 1.6305 in Cable when he knows that the price in the market is already 1.6306-1.6309 and is taking advantage of a latency issue. If the client buys at 1.6305 when CS would have to pay 1.6309 how on earth can we 'hedge'. we would merely be locking in a loss every time. The scalper will immediately sell at 1.6306 taking a one pip profit. CS would then have to sell out of the 1.6309 buy with a 1.6306 sell making a three pip loss. (CS is like any client when we go to hedge ...we must also 'pay the spread').

So after the scalper has closed out CS would be left with the loss to the scalper AND the loss in the hedge.

I can confirm that liquidity providers on FX platforms also do not like the practice and they will instruct the platform hosts to remove the offending client from those able to access the prices. Banks have very, very sophisticated analysis tools and they quickly identify those who abuse the service. SB's are no different.. just because we are smaller scale does not mean that we are not impacted in the same way.

Simon

 

[tar]

jp1966

it is tax free no matter how many times you trade.

the spreads in the ECN's are not as good as many like to say. For much of the last few months in 08 and the first few in 09 the spreads on markets like Cable and GBP/EUR were (and still are on occassion) far wider than the fixed 3 points on CS.

ns1000 is correct, a scalper will buy off CS at say 1.6305 in Cable when he knows that the price in the market is already 1.6306-1.6309 and is taking advantage of a latency issue. If the client buys at 1.6305 when CS would have to pay 1.6309 how on earth can we 'hedge'. we would merely be locking in a loss every time. The scalper will immediately sell at 1.6306 taking a one pip profit. CS would then have to sell out of the 1.6309 buy with a 1.6306 sell making a three pip loss. (CS is like any client when we go to hedge ...we must also 'pay the spread').

So after the scalper has closed out CS would be left with the loss to the scalper AND the loss in the hedge.

I can confirm that liquidity providers on FX platforms also do not like the practice and they will instruct the platform hosts to remove the offending client from those able to access the prices. Banks have very, very sophisticated analysis tools and they quickly identify those who abuse the service. SB's are no different.. just because we are smaller scale does not mean that we are not impacted in the same way.

Simon

This is not an issue if u trade with a liquidity provider with 15 feeds from tier 1 banks , or u can scalp CME FX products , the bottom line SB firms not for scalping , ofcourse i am talking about professional scalping not latency scalping .

 

[capitalspreads]

tar

i am afraid that you are wrong.. we have an FX platform (Capital FX) it is, we believe, one of the most liquid FX platforms on the planet... it does indeed have 14/15 major banks adding liquidity plus all the other liquidity added by clients etc. The quoting banks have quite frequently asked for individual clients to be removed from their liquidity pool.

Although we earn no money from the quoting banks we rely on their liquidity to make our platform attractive so we always agree to these requests.

The banks term it 'toxic flow'. and they want none of it.

In very small size you may be able to trade but you are trying to beat the masters at their own game ...your system would have to be unbelievably fast to take advantage. On the futures.... i have yet to see anyone manage to 'scalp' the futures ..but am willing to be proved wrong

Simon

Simon

 

[tar]

tar

i am afraid that you are wrong.. we have an FX platform (Capital FX) it is, we believe, one of the most liquid FX platforms on the planet... it does indeed have 14/15 major banks adding liquidity plus all the other liquidity added by clients etc. The quoting banks have quite frequently asked for individual clients to be removed from their liquidity pool.

Although we earn no money from the quoting banks we rely on their liquidity to make our platform attractive so we always agree to these requests.

The banks term it 'toxic flow'. and they want none of it.

In very small size you may be able to trade but you are trying to beat the masters at their own game ...your system would have to be unbelievably fast to take advantage. On the futures.... i have yet to see anyone manage to 'scalp' the futures ..but am willing to be proved wrong

Simon

Simon

Maybe this is the case with CapitalFX , but there is other providers that give privacy for their clients ID , so banks dont know the client ID . And u r right i need a very fast system to beat them but this is the case if i want to ( buy on the bid , sell on the offer ) , but it is not true if i am willing to scalp by ( buying on the offer selling on the bid ) .
Anyway for me i like futures contracts cuz they r traded in a regulted exchange and there is more transparency ...
And from your words i conclude that there is no successfull scalpers at all cuz they r not welcomed everywhere : SB , ECN , Futures .. and that is not true there is many successfull scalpers out there either in the PIt , Electronic futures trading , ECN ..
The bottom line is u cant scalp with a SB firm either they will kick u out or they will put u on Dealer confirmation or ... etc .

 

[tar]

to be more clear i am not talking about latency scalping i mentioned this already b4 ...

 

[gle101]

jp1966

it is tax free no matter how many times you trade.

the spreads in the ECN's are not as good as many like to say. For much of the last few months in 08 and the first few in 09 the spreads on markets like Cable and GBP/EUR were (and still are on occassion) far wider than the fixed 3 points on CS.

ns1000 is correct, a scalper will buy off CS at say 1.6305 in Cable when he knows that the price in the market is already 1.6306-1.6309 and is taking advantage of a latency issue. If the client buys at 1.6305 when CS would have to pay 1.6309 how on earth can we 'hedge'. we would merely be locking in a loss every time. The scalper will immediately sell at 1.6306 taking a one pip profit. CS would then have to sell out of the 1.6309 buy with a 1.6306 sell making a three pip loss. (CS is like any client when we go to hedge ...we must also 'pay the spread').

So after the scalper has closed out CS would be left with the loss to the scalper AND the loss in the hedge.

I can confirm that liquidity providers on FX platforms also do not like the practice and they will instruct the platform hosts to remove the offending client from those able to access the prices. Banks have very, very sophisticated analysis tools and they quickly identify those who abuse the service. SB's are no different.. just because we are smaller scale does not mean that we are not impacted in the same way.

Simon

"taking advantage of a latency issue". If you have a latency issue you have to give "price no longer valid" message. I guess with the new coming incredibly fast platform upgrade, this is nothing you are going refer to, as an excuse in blocking out some successful short term traders?

 

[tar]

"taking advantage of a latency issue". If you have a latency issue you have to give "price no longer valid" message. I guess with the new coming incredibly fast platform upgrade, this is nothing you are going refer to, as an excuse in blocking out some successful short term traders?

But sometimes CS's server will not give ( price is no longer valid ) , this can happen if the feed is delayed compared to other feeds ...

 

[gle101]

But sometimes CS's server will not give ( price is no longer valid ) , this can happen if the feed is delayed compared to other feeds ...

I am talking about network latency. I have not experienced lagging of price feed to be a big problem at CS.

 

[tar]

I am talking about network latency. I have not experienced lagging of price feed to be any big problem at CS.

yeah , if it is a network latency then u r right it is easy give ( price no longer valid ) no need to put all scalpers on dealer confirmation ..

 

[gle101]

yeah , if it is a network latency then u r right it is easy give ( price no longer valid ) no need to put all scalpers on dealer confirmation ..

The fixed spread itself, is a problem for some SB. If they cannot handle a fixed spread, they have to adopt a variable spread model, as some SB companies already have implemented.

 

[tar]

yeah

 

[fast trader7]

Anyone having problem with the website? It is very Very slow to accept the orders

I donot know what is the problem

 

[oiltanker]

nfp hour is always slow on sbs?

 

[top trader]

useless, took 2 minutes to let me know that tread wasn't placed.

 

[iamabc]

hi, Simon. i just opened a demo account. From the charts u provide, the candlesticks have long shadows which don't exist actually. I wonder if these shadows will stop out my positions.

how can i make payment and withdraw money? can i withdraw electronically, or through telephone/email etc.

do u requote, say ,for small positions? do u disable online order and provide telephone order only when the market moves fast?

i also found your price of FTSE100 is different from the actual market price (as found from ADVFN). do u have a gurateen of the maximum difference? i don't want to be stopped out by a price that doesn't exist.

i'll day trade FTSE100 index, FTSE shares and US shares, not scalping. but need to get out quickly if i'm wrong. it seems your spread is good. haven't try the excutation speed.

many thanks.

iamabc

 

[tar]

I am not Simon but i have account with CS

how can i make payment and withdraw money? can i withdraw electronically, or through telephone/email etc.
Telephone or email

do u requote, say ,for small positions?
Reject if the price no longer valid

do u disable online order and provide telephone order only when the market moves fast?
yes sometimes for various reasons

i also found your price of FTSE100 is different from the actual market price (as found from ADVFN). do u have a gurateen of the maximum difference? i don't want to be stopped out by a price that doesn't exist.

I dont understand why they have diffrent FTSE price sometimes compared to other SB firms

i'll day trade FTSE100 index, FTSE shares and US shares, not scalping. but need to get out quickly if i'm wrong. it seems your spread is good. haven't try the excutation speed.

Read the thread !

 

[oiltanker]

hi, Simon. i just opened a demo account. From the charts u provide, the candlesticks have long shadows which don't exist actually. I wonder if these shadows will stop out my positions.

iamabc

forget the demo charts. use the live site charts or use charts from elsewhere

 

[iamabc]

I am not Simon but i have account with CS

many thanks for the info, tar.

- do u requote, say ,for small positions?
- Reject if the price no longer valid
reject immediately, or after a few minutes (i've very bad experience with another SB)? can i use market order so that my order can always fill?

- i also found your price of FTSE100 is different from the actual market price (as found from ADVFN)....
- I dont understand why they have diffrent FTSE price sometimes compared to other SB firms
what's the largest difference have u experienced?

many thanks

 

[iamabc]

many thanks, oiltanker. i don't use that chart, i just concern if a SB always quotes the market price. i use tight stop for DT, if the quote is not correct, that'll kill my positions.

I also found the FTSE100 spread is 2 in the demo, not 1. what's the actually spread for ftse100? many thanks

forget the demo charts. use the live site charts or use charts from elsewhere

 

[tar]

many thanks for the info, tar.

- do u requote, say ,for small positions?
- Reject if the price no longer valid
reject immediately, or after a few minutes (i've very bad experience with another SB)? can i use market order so that my order can always fill?

- i also found your price of FTSE100 is different from the actual market price (as found from ADVFN)....
- I dont understand why they have diffrent FTSE price sometimes compared to other SB firms
what's the largest difference have u experienced?

many thanks

I didnt use CS for a while, but the rejection is usually in seconds , and yes u can use orders and u will be filled always but u will : sometimes get slippage , and sometimes your oders will be filled late ...

About the FTSE : i experienced more than 10 pips diffrence but again i didnt use CS for a while ...

Read many posts as u can in this thread it will help u ...