Best Thread Capital Spreads

gle101 said:
OK I understand, hopefully you can sort it out in one way or the other. It is understandable that some limitation might be in place (although there are a few SB's that do not adopt limitations on stops). Not easy hey Simon, clients are never satisfied.:)
Click to expand...

Wouldn't the easy way to sort it out be to have no minimum stop distance, as per the opposition?
 
yes

bloody clients !

we could probably turn ourselves into the FSA's perfect company.. no clients , no revenue, no staff.. but a four man compliance department to show that everything we did was TCF/MLRO/BASLE 2/CMP/PCI/FOS/FSA/Mifid.....etc etc etc ..compliant

simon
 
minimum stop level on wall street now 1 pip wider than current spread (it cannot be less) .. so in the morning 3 pips and in the afternoon / evening 2 pips
 
ha

made the most of this... traded with minimum stop distance bought at 13538 minimum stop 13536... 15 secs later .. 1 pip move down and I am out. £2 loss. but at least the system worked.
 
instant said:
ha

made the most of this... traded with minimum stop distance bought at 13538 minimum stop 13536... 15 secs later .. 1 pip move down and I am out. £2 loss. but at least the system worked.
Click to expand...

No-one said opening a trade with a 2pt stop on the Dow was practical, but it definitely helps later on, so top marks to Simon and CS for customer service.
 
R.Charnock said:
.and they'll all be £100/pt would-be scalpers. Get the firing squad ready. :)
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Not necessary, the limitations now that CS gives us on this instrument is a little better compared to other SB. You will not be successful trading the news with CS anyway using OCO orders. Scalping, you can do with limitation as well, this by manually closing the trades. The 1 point spread will attract scalpers yes, but that goes for CS competitors as well. 1 point spread on the Dow will become a standard spread for this instrument trading SB.
 
Awful quite in here, everybody occupied with trading the 1 point spread on the Dow maybe, ha ha. No really, it works fine, surprisingly few "price no longer valid" messages trading the Dow.:)
 
had lunch with one of our clients yesterday (lunch cos he is a mate not becos a client)... over the years he has been a good contributor to the "Simon Appreciation Fund" but over the last month or so even he has found it difficult to lose !

Ever tighter prices combined with range bound trading ....and he was bragging about several sizeable refunds he had extracted.

I think clients are busy making hay while the sun shines rather than posting ...

Simon
 
capitalspreads said:
had lunch with one of our clients yesterday (lunch cos he is a mate not becos a client)... over the years he has been a good contributor to the "Simon Appreciation Fund" but over the last month or so even he has found it difficult to lose !

Ever tighter prices combined with range bound trading ....and he was bragging about several sizeable refunds he had extracted.

I think clients are busy making hay while the sun shines rather than posting ...

Simon
Click to expand...
Yes probably so, ha ha.
 
capitalspreads said:
had lunch with one of our clients yesterday (lunch cos he is a mate not becos a client)... over the years he has been a good contributor to the "Simon Appreciation Fund" but over the last month or so even he has found it difficult to lose !

Ever tighter prices combined with range bound trading ....and he was bragging about several sizeable refunds he had extracted.

I think clients are busy making hay while the sun shines rather than posting ...

Simon
Click to expand...

You mean CS is losing money by offering 1pt Dow? I'd better give it a go before you go back to 2pt.:)
 
actually spreads are not the issue if our prices / systems are fast enough

it is more the repeated ploughing of the same ground that is causing a change in client performance.

also the contra moves are not big enough to drive people out of positions and the terrible practice of 'doubling up' on losing positions has proved to be very profitable over the last nine months.. giving dealers just enough chance to exit flat/take a profit (even when holding a position for months

simon
 
capitalspreads said:
actually spreads are not the issue if our prices / systems are fast enough

it is more the repeated ploughing of the same ground that is causing a change in client performance.

also the contra moves are not big enough to drive people out of positions and the terrible practice of 'doubling up' on losing positions has proved to be very profitable over the last nine months.. giving dealers just enough chance to exit flat/take a profit (even when holding a position for months

simon
Click to expand...

Fascinating the way these things pan out. What will happen if the FTSE gets to 6000, or the Dow hits 14k again... or possibly more likely, Euroland completely collapses. Bloodbath for clients, I suppose.
 
charnock

yes and no ... only gets tough if it gets 'through' the levels and moves into new ranges. In general people tend to believe in the status quo.

Dealers often see no real reason for large moves and so tend oppose them (indices/currencies/gold etc) believing that an intra-day 'pull back' is likely so it is the 'extension' moves which cause damage. i.e a big daily/weekly move followed by another big move in the same direction.

simon
 
capitalspreads said:
charnock

yes and no ... only gets tough if it gets 'through' the levels and moves into new ranges. In general people tend to believe in the status quo.

Dealers often see no real reason for large moves and so tend oppose them (indices/currencies/gold etc) believing that an intra-day 'pull back' is likely so it is the 'extension' moves which cause damage. i.e a big daily/weekly move followed by another big move in the same direction.

simon
Click to expand...

Yes, I suppose that the smaller players can take the heat up to a point, but the real chaos starts once even the 'disaster stops' start getting triggered. It would be interesting to see charts showing a broker's or SB's profit/loss over different time periods, plotted against market moves.

Whether that would be of any practical use, I don't know. Trading mainly indices and shares this year using three or four SB accounts, I've somehow managed to end up with almost the same overall balance, and it's never been more that 15% up or down. Not sure how or why it happened.:)
 
last few days a definite case in point

market 'falls' to 5725 (support) (all clients get long) and quickly bounces back to 5840 (resistance) (clients take profit on way up and get short) falls to 5780 (clients take profit but not a big enough fall to buy)

now up at 5835 clients selling again.... probably going to fall back below 5800 !

there is just not enough news to move the markets out of their ranges. the FTSE has effectively traded between 5700 and 5900 for two months.

simon
 
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