Market Makers not quoting

[John26]

All,

Something dreadful just happened, i was trading 2ukl, when I wanted to sell, I couldn't get a quote through my broker online, I called and explained the issue, price kept dropping and the guy at the end of the phone couldn't get a quote either.

He put me through to dealer who had to try a couple of times to get a quote and explained that the MM stopped quoting online for that etf!!!! He eventually managed to get a quote and sell for me. By then I had lost about £100.00 by the time I managed to eventually sell.

The trader explained that MM don't have to give quotes online if they don't want to. I have never had this happen to me and quite frankly, I can live with £100 loss, but it could be a lot worse for me or others who trade bigger.
Luckily I am trading thin at moment because of market uncertainty but if i was all in, this would have cost me a lot more.

Question, is that right that MM don't have to quote online? I just find it absurd. I asked the trader if they did that for the own financial profit, he said probably not. Only thing I can think of is MM mouse or keyboard stopped working!

I am quite sick really and put off trading now.

 

[malaguti]

All,

Something dreadful just happened, i was trading 2ukl, when I wanted to sell, I couldn't get a quote through my broker online, I called and explained the issue, price kept dropping and the guy at the end of the phone couldn't get a quote either.

He put me through to dealer who had to try a couple of times to get a quote and explained that the MM stopped quoting online for that etf!!!! He eventually managed to get a quote and sell for me. By then I had lost about £100.00 by the time I managed to eventually sell.

The trader explained that MM don't have to give quotes online if they don't want to. I have never had this happen to me and quite frankly, I can live with £100 loss, but it could be a lot worse for me or others who trade bigger.
Luckily I am trading thin at moment because of market uncertainty but if i was all in, this would have cost me a lot more.

Question, is that right that MM don't have to quote online? I just find it absurd. I asked the trader if they did that for the own financial profit, he said probably not. Only thing I can think of is MM mouse or keyboard stopped working!

I am quite sick really and put off trading now.

I can understand John, but the volume traded is 530!!! its not surprising there was a problem getting a quote, he had nobody to cover the position. volume/liquidity is everything in trading. you need a market, 500 is a party
there are better etfs you could have used for the FTSE which have much much larger volumes. compare that with ISF (ISHARES CORE FTSE 100 UCITS ETF GBP DIS (ISF) with a volume of 10million!
before you traded this, the spread should also have highlighted the issue

don't be disheartened, just learn from the experience.

 

[John26]

I can understand John, but the volume traded is 530!!! its not surprising there was a problem getting a quote, he had nobody to cover the position. volume/liquidity is everything in trading. you need a market, 500 is a party
there are better etfs you could have used for the FTSE which have much much larger volumes. compare that with ISF (ISHARES CORE FTSE 100 UCITS ETF GBP DIS (ISF) with a volume of 10million!
before you traded this, the spread should also have highlighted the issue

don't be disheartened, just learn from the experience.

Ok, Thanks for the tip Malaguti, what would I be without you. You always come to my rescue. Cheers mate.

That makes sense. Silly me. £100 lesson! Oh well, still learing.
Out of interest, what's the inverse for the ftse 100 that has good liquidity as well (trading in London to hold for intraday to 1 week)?

Cheers.

 

[malaguti]

Ok, Thanks for the tip Malaguti, what would I be without you. You always come to my rescue. Cheers mate.

That makes sense. Silly me. £100 lesson! Oh well, still learing.
Out of interest, what's the inverse for the ftse 100 that has good liquidity as well (trading in London to hold for intraday to 1 week)?

Cheers.

the DB X range I believe try XUKS. only happy to help John
to be honest though, I'm not sure about the inverse ones. I understand the benefits however for some reason I would just rather sit on cash or look for alternative markets..thats just me
volume for XUKS is half a million..not much again but the spread is much tighter so alot safer I'd say for your purposes

good luck mate

 

[John26]

... try XUKS. only happy to help John
to be honest though, I'm not sure about the inverse ones. I understand the benefits however for some reason I would just rather sit on cash or look for alternative markets..thats just me

Thanks for this. If you trade up with ftse, why not trade down when ftse reverse? Is that just personal preference or is is there something I need to be aware of?

Cheers.

 

[malaguti]

Thanks for this. If you trade up with ftse, why not trade down when ftse reverse? Is that just personal preference or is is there something I need to be aware of?

Cheers.

I personally wouldn't trade the FTSE but may consider an ETF for the 250,
I only trade its constituents, but then its mostly the 250 rather than 100. so if FTSE is down, I'm looking to close or tighten stops.
Like I say, if FTSE is down, i'd be inclined to trade a commodity ETF, PHAU for example. even though we'll now see sector rotation and precious metals (just look at fresnillo) I'll stick with Phau.
The only reason being is because I have a strategy that has been backtested through every type of market going back the last 20 years and if there is one factor that dramatically increased the back test result, it was the state the FTSE was in. If its in a downtrend, the drawdown increased significantly and the number of winning trades dropped from roughly 70-75% down to 50%
I now just keep away...so yes in answer to your question, its just me!!

 

[John26]

I personally wouldn't trade the FTSE but may consider an ETF for the 250,
I only trade its constituents, but then its mostly the 250 rather than 100. so if FTSE is down, I'm looking to close or tighten stops.
Like I say, if FTSE is down, i'd be inclined to trade a commodity ETF, PHAU for example. even though we'll now see sector rotation and precious metals (just look at fresnillo) I'll stick with Phau.
The only reason being is because I have a strategy that has been backtested through every type of market going back the last 20 years and if there is one factor that dramatically increased the back test result, it was the state the FTSE was in. If its in a downtrend, the drawdown increased significantly and the number of winning trades dropped from roughly 70-75% down to 50%
I now just keep away...so yes in answer to your question, its just me!!

Very interesting, thanks for the insight. Cheers