Best Thread Capital Spreads

It is only an excuse to shut down profitable scalpers , because their trades is not hedgeable , so any profits they make will be from CS pockets , any profitable scalper will be put on dealer refer , he scalps latency , he scalps supports and resistance points , he scalps news , they will shut him down based on the possibility he trades erroneous prices , CS will not know wither he is scalping erroneous prices or he is scalping legitimate prices , but they will shut him down and refer his trades to the dealing desk ... same story with sports betting bookies but different tactic , at least bookies admit they shut down winners ...
 
Personally I think the whole latency scalping saga is a waste of time and pointless. Yes yes I now its pretty much guaranteed profits, but sitting waiting for these situations to pop up 20-30 times a day must be a real drag just to catch 1-3 pips on a trade. And yes you maybe doing £100 a pip but seriously FK THAT! I would rather poke my eye with a sharp stick that watch charts every minute of the day.

My point is just do some basic analysis keep things simple and you will only need to look at the charts 2 or 3 times a day taking some tasty swings that will lead to 20-60 points a trade with minimum effort. I have my charts set up to squeal like a bitch when my trading scenario pops up on the chart so I don't even need to be sitting by the PC, that way I can sit and watch 40 year old milfs on the 50" plasma most of the day. :p
 
Xenophobia said:
Personally I think the whole latency scalping saga is a waste of time and pointless. Yes yes I now its pretty much guaranteed profits, but sitting waiting for these situations to pop up 20-30 times a day must be a real drag just to catch 1-3 pips on a trade. And yes you maybe doing £100 a pip but seriously FK THAT! I would rather poke my eye with a sharp stick that watch charts every minute of the day.

My point is just do some basic analysis keep things simple and you will only need to look at the charts 2 or 3 times a day taking some tasty swings that will lead to 20-60 points a trade with minimum effort. I have my charts set up to squeal like a bitch when my trading scenario pops up on the chart so I don't even need to be sitting by the PC, that way I can sit and watch 40 year old milfs on the 50" plasma most of the day. :p
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Ha ha, some good points. Latency trading is not an issue, volatility is where it hurts for the SB, but that is part of how the real market operates from which the SB derive and calculate their price quote.
 
capitalspreads said:
ross

maybe i have not explained it correctly.. scalping clients just sit at the screen for hours on end and only ever trade when the price has moved on a live plaform by 2 pips or more in a clip and then they immediately push the trade button. The 0.25/0.5 sec delay on the price is enuf to get a trade on. When the price is just 1 pip wide this means that they are always on a profit before the trade as even been accepted. If a client only did this a couple of times a day we would never see it but... human nature being what it is these 'scalpers' sit there all day and do it 20 or 30 times in a session day after day making them easy to spot. We do not take their winnings away, they can remove these and boast about how they beat the Spread betting company, but from the moment we indentify them we put them to dealer acceptance so that they are having to trade in the same fashion as everyone else (i.e trying to beat the market... not just taking advantage of a platform).

Simon
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Interesting, but that's not really scalping in the accepted sense, is it? In any case, a) I can't see how it would work (... 'always be on a profit before the trade has been accepted' ??), and b) the clients put on dealer referral aren't even trying to do that.

Saying 'We do not take their winnings away', as though it's some sort of incredible act of generosity, seems odd. On what grounds could you take their winnings once you've admitted they're winnings? If you did that, you would also have to give clients back any losses caused by the delays and deficiencies of your platform, which I reckon would be a far greater amount.
 
Ross Spur said:
Interesting, but that's not really scalping in the accepted sense, is it? In any case, a) I can't see how it would work (... 'always be on a profit before the trade has been accepted' ??), and b) the clients put on dealer referral aren't even trying to do that.

Saying 'We do not take their winnings away', as though it's some sort of incredible act of generosity, seems odd. On what grounds could you take their winnings once you've admitted they're winnings? If you did that, you would also have to give clients back any losses caused by the delays and deficiencies of your platform, which I reckon would be a far greater amount.
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I must be dense because I don't even understand the problem. Are they saying that people have a direct feed from the real market, so they know what that is doing a second or two before they hit the buy or sell button?

This sort of thing can happen anyway, if you just happen to hit the market at the right time, without having any direct feed or whatever. Buy the time you hit the buy and sell you can find you are already in profit on a small spread instrument like EUR/USD, and yes, you might be able to close it right away. But equally well you might find it has moved against you by the time your close is filled, or it might have moved against you in the first place. Surely this is all just part of the game/business?
 
gle101 said:
Ha ha, some good points. Latency trading is not an issue, volatility is where it hurts for the SB, but that is part of how the real market operates from which the SB derive and calculate their price quote.
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And if it really hits them, they take the money back in that case also, as I once experienced (not CS though). However, in that case, I had also profited a lot from the volatility without them taking it back. The case where they did was an extreme one during a wild period in gold. I think I made about 1000 pips in a few minutes. I'm waiting for this to happen again! :) It just appeared as a "correction" in my balance sheet. As I was still in healthy profit on the day, I didn't complain, but I could have been out of pocket.
 
volatility is not an issue for CS and never has been as volatility cuts both ways.

To say that we should ignore these clients as there are only 0.776pc of them demonstrates an ignorance of the problem. In spread/losses/hedging etc etc CS makes about 1.3k a year out of an active client (in our investor presentation pack, before anyone shouts) about half the amount our biggest competitor makes out of clients. A scalper, by our definition of scalper, (i have commented on this quite exhaustingly earlier in this thread) can possibly make many times this sum each month therefore massively outweighing their relative minority.

To be fair this is becoming less of a problem as systems get faster but any sensible company that acts as a market maker rather than an exchange must be continually aware of it.

API links into MM systems are not allowed even by the biggest of our competitors so the 'toxic flow' element hated by the major Bank FX market makers should never be a problem for the cfd/sb providers.

The problem is that some commentators get all het up about a few FX players and try to extrapolate the quite reasonable response of CS across absolutely everything. As mentioned just a tiny proportion of our clients are on dealer acceptance and this should not affect over 99pc of our clients.

monty.. i will reply to your comment about requirements when i have the facts to present.

Simon
 
I just find it very hard to imagine that there is enough money in latency scalping to justify the effort - only way it can plausibly be being done is bots imo, which actually wouldn't be terribly hard to code.

Edit: Mate of mine who works in FX says there was a well known bot that did equivilant with bank feeds, it's name was apparently "The Beast" :LOL:
 
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arabianights said:
I just find it very hard to imagine that there is enough money in latency scalping to justify the effort
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I don't think that there is enough money in it either but for CS it seems to be a case of plugging as many holes as possible even the tiniest one. Even if it is not really a problem they'll plug it anyway just to be on the safe side. I don't think it's worth the bad publicity that comes with it.
 
PipStar said:
I don't think that there is enough money in it either but for CS it seems to be a case of plugging as many holes as possible even the tiniest one. Even if it is not really a problem they'll plug it anyway just to be on the safe side. I don't think it's worth the bad publicity that comes with it.
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I think there is a lot of money involved if you are clued up about it and have it automated.

I think the point simon is trying to make is the fact that this small manority may have it automated or just sit there all day/night catching guaranteed pips based on latency and maybe trading £50-£300+ a pip.

According to Simon this group of trader is doing 20-30 trade within a day so if they are taking advantage of this flaw, then they could be taking anywhere from £3,000 - £10,000+ a day all guaranteed because of the SB price delay.

Its not that hard to belive that there maybe some clever people that have got this nailed due to there commitment and determination to make it work for them.

But as I said on my other post, I think there is far better ways of maing your doe in trading rather than being glued to screens all day.
 
<< In spread/losses/hedging etc etc CS makes about 1.3k a year out of an active client>>

For interest's sake, how's that figure worked out? Is it the net amount deposited, divided by the number of active clients? And do you qualify as 'active' by making one trade?
 
ps.

I think the whole latency issue would be at its prime during high impact news events.

Such as during a GBP news release price may start pumping up on the LIVE FEED before the SB firms price does.

So if price starts to move on the LIVE FEED first during the news then one could smack the BUY/SELL button on the SB firm platform at say £100 a pip. Obviously these news events can lead to a great deal of pips in the matter of minutes.

Im just guessing here. But I can see it being a major problem if that is the case.
 
Xenophobia said:
I think there is a lot of money involved if you are clued up about it and have it automated.

I think the point simon is trying to make is the fact that this small manority may have it automated or just sit there all day/night catching guaranteed pips based on latency and maybe trading £50-£300+ a pip.

According to Simon this group of trader is doing 20-30 trade within a day so if they are taking advantage of this flaw, then they could be taking anywhere from £3,000 - £10,000+ a day all guaranteed because of the SB price delay.

Its not that hard to belive that there maybe some clever people that have got this nailed due to there commitment and determination to make it work for them.

But as I said on my other post, I think there is far better ways of maing your doe in trading rather than being glued to screens all day.
Click to expand...

i watch screens all day,would love to hear how you do it.maybe start a thread with your methods
 
Xenophobia said:
ps.

I think the whole latency issue would be at its prime during high impact news events.

Such as during a GBP news release price may start pumping up on the LIVE FEED before the SB firms price does.

So if price starts to move on the LIVE FEED first during the news then one could smack the BUY/SELL button on the SB firm platform at say £100 a pip. Obviously these news events can lead to a great deal of pips in the matter of minutes.

Im just guessing here. But I can see it being a major problem if that is the case.
Click to expand...

in DMA the market thins out in size and bids/offers widen out too.
 
capitalspreads said:
volatility is not an issue for CS and never has been as volatility cuts both ways.

To say that we should ignore these clients as there are only 0.776pc of them demonstrates an ignorance of the problem. In spread/losses/hedging etc etc CS makes about 1.3k a year out of an active client (in our investor presentation pack, before anyone shouts) about half the amount our biggest competitor makes out of clients. A scalper, by our definition of scalper, (i have commented on this quite exhaustingly earlier in this thread) can possibly make many times this sum each month therefore massively outweighing their relative minority.

To be fair this is becoming less of a problem as systems get faster but any sensible company that acts as a market maker rather than an exchange must be continually aware of it.

API links into MM systems are not allowed even by the biggest of our competitors so the 'toxic flow' element hated by the major Bank FX market makers should never be a problem for the cfd/sb providers.

The problem is that some commentators get all het up about a few FX players and try to extrapolate the quite reasonable response of CS across absolutely everything. As mentioned just a tiny proportion of our clients are on dealer acceptance and this should not affect over 99pc of our clients.

monty.. i will reply to your comment about requirements when i have the facts to present.

Simon
Click to expand...
Simon, you did not answer my post #6202 regarding clients on referral to a dealer. If it is such a tiny problem why don't you close these accounts Simon? It would be a much more of a fair practice as I see it, instead of flagging and discriminating certain clients the way you do, and thus creating ill will for the company.
 
cs ftse ticker can be out by 3pts from where the live price on everything else is. funny enough the cs demo is more accurate and records the same price everyone else does. also there seems a 'stickyness' on the live ftse ticker.

today the live ftse ticker at 5pmish got into the 5137s but price never got out of the 34s before turning back down. so if you are placing stops off the chart you need to add at least 3pts or the ticker will take you out even if the price never prints it and you thought you were safe.

so you have to use their charts as the price is their price.

i don't mind using their charts but it would be better if there were a few more options on them
 
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