Best Thread Capital Spreads

levII

spread betting companies refer to their spread on equities as being the spread around the 'real' market price.

So in my example a price in the market of 485.5 - 486.0 is where you would be able to buy or sell the real shares in the 'rael' world (by the way this is what we have to do as well when hedging positions).

So our spread is the price around this market price ...0.1% of 486 is 0.48 (or 0.5 for rounding purposes) so our total price spread in the market would be 1p (0.5p market spread plus 0.5p our spread)

Quite often share quotes (even in ftse 100 shares) are 4 or 5 p wide even on 300p shares, if we oferred 0.1% wide on an absolute basis we would be quoting inside the real market price ! Nice as we are it is unlikely that we will do business that immediately puts us in a loss making position!

Simon
 
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What's happenned to your spreads on the rolling stocks CS? They used to be good - now they are the same as Fins and alot worse than CMC.

Is 0.1% each side here to stay ?
 
cj12 said:
Good on capitalspread Although this should have not happen but they did refunded your loss and put you back into the original trade..I now steal4free would not offer you this. They would make 101 excuses.

CJ
Click to expand...

I have to come to the defence of CMC on this one as they refunded me a trade last month after I complained the stop had been activated but when I looked at the chart it was 1 point away. They checked the prints and refunded me the money in full.
 
schoe,
This must be a first - it must be so unique that D4F should apply for the incident to be logged onto Guiness Book of Records.

Isay this beacuse I actually watch my limit sale being hit rapidly not once but three times, the ............... refused to fill my order. The winning position rapidly turned out to be a losing one.
 
Yes gullible I have to agree they have do not always have the best service , and its fair to say I was pleasantly surprised I only phoned on the off chance didn't expect them to give me my money back !!

Sorry to hear of your limit trade hope you phoned and complained.
 
Gullible,

Assuming what you say is correct, if you have no satisfaction from the bookmaker and if the print corroborates your account may I suggest you take your complaint to the FSA and insist upon an investigation.

If bookmakers appear to be, for example, deliberately taking out stops at prices at which the market never traded or failing to execute profit taking orders in similar circumstances then they ought to be required to explain.
 
Most spread bet companies (especially Deal4Free) will fill limit and stop orders once the underlying instrument and their quote trade at that level. However, if you have a trade of say £50 a point in a company's shares and there are less than 5000 shares traded, you will not get filled. I have never had a problem with any of them regarding this issue as it is very easy to contest.

As Levll points out, they cannot risk you going to the FSA when the evidence is so damning.
 
hi all

price feeds...

FX
we take price feeds from three banks/brokers and use these feeds on our platform...(we have no input into this at all) .. our computers then tell us when a limit or stop has been hit and we then activate it... as i have said in the past we frequently let clients off small stops on spikes etc.. (though I have to admit we usually dont as that is the point of a stop) ... the point i am trying to make is that maybe the bank feeds we have will give a slightly lower / higher print than the feeds which a client is watching , there are literally 100s of different bank/broker/exchange feeds out there for FX.
Nearly every other product that we quote is traded on a single exchange where the low/high prints are there for all to see.

cc1
can u tell me which products we have widened ...i was unaware that we had moved any spreads aside from price adjustments ... our spreads are based on 0.1% for rolling bets (which i think is pretty good!) . We are continually in the process of going through our products and checking that they have the correct spread applied . And i understand that because of price changes in various individual shares that some spreads have come in a bit and some widened.
My dealers say that the most obvious one is google which we launch at 0.1% when it was trading at $90 (or 9 cents) and they have widened this to 20 cents because the share is now at $200 !

Simon
 
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LION63 said:
Most spread bet companies (especially Deal4Free) will fill limit and stop orders once the underlying instrument and their quote trade at that level. However, if you have a trade of say £50 a point in a company's shares and there are less than 5000 shares traded, you will not get filled. I have never had a problem with any of them regarding this issue as it is very easy to contest.

As Levll points out, they cannot risk you going to the FSA when the evidence is so damning.
Click to expand...
Good on you!
 
capitalspreads said:
... the point i am trying to make is that maybe the bank feeds we have will give a slightly lower / higher print than the feeds which a client is watching , there are literally 100s of different bank/broker/exchange feeds out there for FX...
Click to expand...

Simon, thats understood. Different bank feeds are used by different brokers / data providers etc and hence it is to be expected that price will vary slightly from one to another. Fair enough.

The point I was making was that I hadn't realised that your own charts were not a representation of exactly what your own price was. This is why I found it initially confusing that a stop could be triggered and acted upon by your dealer, but your own chart indicated that your price had not traded there.

Anyway, it was an easy lesson learned, and CS were good enough to put me back in the trade, which as I've said before, I was grateful for.
 
Simon,
This has probably been covered some pages back but it took me over 18 hours to read the whole thread last time and I don't want to do it again!

Can you confirm whether you can place 'if done' orders over the phone? I know that you can't do them on the internet (yet) but was wondering if it was possible any other way.

Thanks in advance,

Edster
 
Hi Simon

As a P.S. to the above post, have you a firm date yet as to when contingent orders will be available (on the platform or otherwise).

I am still patiently waiting since the old days when this thread was in it's infancy :rolleyes: :D
 
Hi,
a quick question - and I might well have misunderstood something here, but I was just watching Merck (MRK) on US rolling bets, and the esignal spread shows 1-2c spread, bid 3110 ask 3112, it's been as tight as 3111-3112. Checking CS I was a bit surprised to find the prices quoted at 3106-3119, over a short period I've seen 3103-3117, 3106-3117.... the specifications sheet lists daily rolling spread as 0.3%, how does a $31 share at 0.3% spread end up with a 13,14c spread? Surely 0.3% is about 9c? Also why is it so big? I've just checked D4F and they're quoting a 5c spread on MRK... I appreciate there'll be some difference from one company to another, but I'm surprised to find it's almost 300% - or am I calculating the spread incorrectly?

Dave
 
Okay,
just read back, you say a while ago rolling spreads are 0.1% wider than the L2 bid offer, which at $31 is 3c as the 0.1p coin hasn't been found necessary (at least not since about 1302 <g>) which would suggest something like 3107-3115 (8p) down to 3108-3115 (7p) spread, but over the short period I watched it the spread varied from 11p to 14p - nearer 11p most of the time, but that's still a few p over the 1% surely?

Is your 0.3% spread added to the existing bid - ask spread or something? I'm not trying to pick holes here, it's just that I find it hard enough to find the right share to trade, and get the direction right (less wrong would be an improvement) without finding I'm in the hole too far at the start - I was looking at a short term, very small long move in MRK and the combination of 14p spread and the fact that it was centred 4p from the bid and 7p from the ask looked too big a hurdle to climb at the time!

Dave
 
Dave JB

I am sorry....(I seem to be apologising alot recently) please let me clarify.... we have 0.1% spreads on rolling FTSE shares our spread on rolling US shares is 0.2%. on a $31 share this should be a spread of 6 ..for some reason it has been set at 9...this has now been corrected.

we are just going through all our equity spreads to amend them in line with policy (unfortunately sometimes this means widening them !!)

If anyone spots any price spread that seems to vary from our stated policy aims please call us and we will look at them

Edster

Yes you can give us contingent orders over the phone.

Darrenf

The new order module is causing some problems because it will affect nearly every area of our calculating modules.. our original estimate that it was a small adjustment has proved well wide of the mark. Our best estimate is the first or second week in March.

Simon
 
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Simon,

Do you have any plans to do a NDX or COMP daily cash bet? If not why not?!

cheers


D
 
Cheers Simon,
the downloadable pdf suggests 0.3% still, which may well be where the 9c came from... tying in what I see on the screen to the 0.1% and 0.3% was proving difficult <g>
Dave
 
DaveJB

yes I can see your confusion.
we are looking at all our spreads at the moment we may narrow some of the more stable markets in the fullness of time.

DIN

we do quote the Nasdaq 100 as a rolling bet and we also quote the QQQ on a rolling bet (which is the equity equivalent)

We do not quote the Nasdaq Comp at the moment as there is little demand for it and frankly the nasdaq 100 is by far the biggest component of it.

Simon
 
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