Best Thread Capital Spreads

yes no probs

to be honest our dec dow is only 8 wide so it would probably suit you to trade in that rather than the daily if you generally hold positions for longer than 2 days.
 
CapitalSpreads

Simon

I've just discovered this thread [thanks Mombasa] and am quite astonished to find a SB company answering questions in such a frank and friendly manner. Thanks for that keep it up.

My question is.
I note from your earlier posts that the Dow cash price is 'derived' from the actual price. I am looking into 'SB bias fact or fiction?' at the moment.
Please can you tell me the algorithm you use to calculate the Dow cash price from the underlying market price?

Bill
 
Simon, thx - u're probably right about trading the dec dow instead - it's just that I find the discrepancy in price between cash and futures a bit offputting.

I have two trading styles, one is to daytrade the dow (as per Chartman's strategy) and the other is to divergence trade the dow and ftse which obviously requires umpteen days to tradeand is easier to follow with cash then with futures - using Index Kings methodolgy!

Cheers
 
Bill

derived/algorithms are rather a fancy way to describe what we actually do. All the SB companies (or at least most, as I cannot talk for all) look on the Bloomberg terminal and type in FV [enter] and this gives the difference between the current future and the cash price for that day.

FV stands for 'Fair Value'. So for instance the Dow this morning had an FV of 22.24 so all I do is subtract 22 from the mid point of the Dow December Future and I have the mid point of the Dow Cash.

As the market gets closer to the close there may be a slight difference in this FV so that I will adjust my cash price accordingly. (There may be buyers in the actual shares but sellers in the futures which might temporarily narrow(or widen) the spread.)

Of course if we had to calculate the FV we could do so, this would take the form of subtracting any dividends payable before the future expiry and a calculation of the interest rate cost over the remaining time period. Plus some other minor varients. Bloomberg do this automatically so that I dont have to! (thank god)
 
spot the obvious mistake ... I, of course, meant add 22 to the futures price of the Dow to get the Cash price
 
Simon

That's great. Thanks. I can work with that. Vote added.

I can therefore assume that if I compare a Dow live data feed with a SB cash price I should see correlation with a possible fixed + or - 1 or 2 points throughout the trading day. i.e. no evidence of fluctuating bias according to market movement.

No reply needed [unless of course you want to]. Just thinking out loud really.

Just a general point. It's great to hear that an SB company is prepared to come on T2W and answer questions. The thing is you should not expect an easy ride, nor should you take comments personally. SBs are regarded with deep suspicion and with good reason. They have to make a profit from their clients and everyone is aware of that. In that climate all sorts of characters drop out of the woodwork from conspiracy theorists to people who have lost lots of money and looking for someone to blame and also people with genuine grievances.

On balance though I personally think that the potential for finding new clients on sites such as this must be improved by representing your company here rather than hiding away like most of the other SB company's seem to [btw I am willing to be corrected on that, I haven't read all the posts, are there other SB representatives?]. This is where ideas are exchanged and rumours about a good SB company can be propagated.

Bill
 
Much as I would like to be unique, I think that some other SBs do occasionally make comments etc... I know that they do look at them to ensure that incorrect info is not taken as gospel.

But thanks for your comment anyway.

if you did your correlation against the futures you should not see too much variation (as you say +or- 1 point) but if you look for correlation against the Dow cash index you will find a great deal of difference as the futures generally move much faster than the cash.
Also the Dow cash index always starts from the close of the night before and as the initial trades on the composite shares come in the index moves in to line with the opening level expected from the futures price. (i.e today, although we know the dow cash will open around the 9830 level (given the futures price at the moment) the first print will still be at 9801)
 
Capital Spreads, there has been the odd comment from another SB co. You, Sir, are clearly in a class of your own. Your responses and frank answers will be refreshing to hear by us all. I'm surprised that you have not had the misfortune to be dragged over the coals by the doubters, accusing you of a secret agenda. Your agenda is clear. Do a 100% PR job on here, and maybe win a few clients. Please carry on the excellent work!
 
Chartman. Re the "odd comment". Your dismissal is somewhat revisionist. "SB bias" ran for 4 pages and at the time you remarked.

quote

This is the best read I've had in ages. Just what we need for a top dog BB.

unquote
 
Chartman. I understand that. But purely in the interest of a level playing field the substantive information was provided by Probookie who volunteered that he/she worked for IG.
 
capitalspreads said:
No, of course we will quote in fast markets, but what I am saying is that allthough, we would hope that all trades would go straight through we cannot, and nor would anyone else, guarantee that if you hit a price online you will definately get it.

We will try to fill all trades at the levels attempted but as, with all things, we cannot say that we will always do so. That is what I meant to say.


Simon
Click to expand...

Correct me if I am wrong but IG have a guarenteed online system. The price I click at is the price I get ...be it not on the best spreads in the market.
 
Looks like a slick site - like some of the charting functionalities ..will probably open and play around with a demo acc tomorrow!
 
Hello capitalspreads,


Thanks for a really capital service.



I just wanted to ask you about safety of client funds. I know that "dealforfree" have two features which enhance fund safety:-


(a) Clients funds are segregated from the company funds.



(b) Deal for free are covered by the financial services compensation scheme (which I find reassuring)


Are you able to offer the above ?



Thanks in advance
 
Simon,

What's going on here? When I go to the CS site (not logged in) I get a quote for Dec FTSE of 4331-4336. I login to my demo account and the quote is 4297-4302 - have noticed it's was like that yesterday too!
 
hi guys sorry to be so late coming on ...meetings etc

I must say if you are running a business and want to get something done ...dont have a meeting about it.

Mombasa ... the simulator site does not get as much attention as the live trading site and sometimes glitches slip through without us noticing. If you see any anomalies just give us a call on 02076000110 and we will try to correct it.

Peugot ...Client funds are protected in the same way as with deal for free, (a) all client monies are held in segregated accounts seperated from the parent company and we are FSA registered so that (b) all customers are protected by the same FSA guarantee. Mind you the way our customers are going at the moment the parent company is going to need protection from them!!

jklondon ... Unfortunately I cannot comment on IGs trading site or their policys on filling orders. But I will say that under normal circumstances we will naturally fill any client orders it is just that I cannot actually Guarantee it. Sometimes, even in Spread Betting, you just miss the price. Harsh I know but there it is. Also sometimes systems run slow or glitches appear which throw up incorrect or old prices.

Good luck guys

Simon
 
Last edited:
Thx Simon - working well now - my first day daytrading with CS and am quite pleased (well, ok have -ve pos but that's my dodgy trading!)

Am gonna continue simulating for a couple of weeks and hopefully then switch from fins.

Cheers
 
Hi everyone Can anyone tell me why I can run D4FREE platform and Prophet NET charts at the same time but I cant run the chart and Capitol Spreads site at the same time. When I try to do this one knocks the other off. Any help much appre:
Brilliant site keep up the good work.
 
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