capitalspreads said:
spread betting vs direct access
Simon,
Sorry for dragging this up (again), i'm just catching up on things now after a wee break.
Your "arguments" for/against direct access are very well thought out and convincing. I'll accept all your points without questions. But i'd like to make one comment (if i may). When i talk about wanting "direct access" to spread-betting i don't mean direct-access to markets (obviously). I want an automated method of placing orders which does not require my physical presence at a computer or telephone. The reason for this is two fold, 1 - i work during the day, and 2 - i'm probably the weakest link in any trading i do (much better to let a machine handle it).
To cover some of your points:
capitalspreads said:
you have to pay to have direct access.... SB platforms are free
I'll happily pay for the service. SB can remain free, i would happily pay for a feed of your prices and an API or link to a suitable trading platform - assuming i can afford it ofcourse
(if it's going to be automated trading i'd like to trade against your price and not prices from another source).
capitalspreads said:
one of the major points missed here is that in general SB companies will accept trades in greater size than is available in the real market and will also accept trades even if the actual price was no longer there with direct access either you get the price or not.
That's a fair point, and there are a number of ways to handle it (each of which will get you some abuse from someone i would imagine). For example, place a maximum trade size on each product traded on the automatic platform. I would even suggest that it would be allowable to set a variable maximum trade size depending on volatility. After all if you won't accept £100/point because of large moves, i can still make a profit on £10/point.
I realise the amount of effort involved in implementing something like this is significant, but I assume most brokers (of whatever form) use a select handfull of backend systems, so there are probably solutions already available. Ant this would be a great industry first fro you , and another great feather in your cap. You already lead the way in service and support, how about extendig that to new way to spreadbet?
a0-0b