SB and CFD, where does the money come from?

$$$DOLLAR$$$ said:
My apologies as that was out of order of me for saying that.

I guess the debate got a little heated so sorry for the comments. I'm sure you are an intelligent man and mean right.

Hope we can still engage in debates in future.
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He's not, you got it right the first time :cheesy:
 
capitalspreads said:
samirs

i am not sure where kwickwool got that bit of misinformation (maybe it was taken from our first year in existence) .... or maybe he just made it up on the spot.

the biggest winner versus us is well over £1m (in fact we have one client who has made more than 500k in the last month) and you must remember that we do not tend to attract 'big punters' because we give no credit/waived margin and insist on stops versus every trade. I know that with IG they had a client who had made north of £20m in just a few months last year.

our biggest winner versus initial deposit was over 340k from a deposit of just 4k. (a BT engineer from brentwood)

BUT... our biggest retail client loser was £730k followed by another 700k and several in the 600ks.

You must remember that these are all extremes.

The fact is that, in general, we can only 'gain' the money put down by the client as our stop policy normally stops people losing more than their initial deposit (although it is possible) ... whereas the client, if he/she gets it right, can 'win' multiples of his/her initial deposit. So in the case of the BT engineer the most LCG could 'win' was 4k whereas he made £340k

but dont cry for us... we always have the spread in our favour.

Simon
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So what happens if you ever end with 100 clients each making 100,000 while new deposits and losers do not compensate for the loss?

Affording big winners is a one off thing. I am sure no betting shop can take big winners consistently.

A more rational approach would be to limit maximum winnable amount based on what a SB can afford to lose. This kind of honesty would actually help SBs in getting new deposits.
 
You can improve your odds of winning to about 100% by going long on an index or opening an FX position and then waiting...
 
safvan

of course we have limits and we hedge clients above these limits.. it is very well saying 'if' we got 100 clients who won £100k but this just never happens

in the real world 50 of them would win and 50 would lose.

in any case LCG has over £22m of its own cash so a £10m hit would hurt but not kill us.

Simon
 
samirs said:
so he was basically gambling and had a phenomenal run....you mean he did not have a significant loss in the entire run...also how long did it take him to achieve this feat

main thing for me is he knew when to stop....
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Why was he gambling samirs ? it was most likely part of his strat not to have a s/l or at least set it a long way away, that way he cant be spiked out as long as you have the capital and ball's to go with your decision then its good trading is'nt it ?
 
mike. said:
Why was he gambling samirs ? it was most likely part of his strat not to have a s/l or at least set it a long way away, that way he cant be spiked out as long as you have the capital and ball's to go with your decision then its good trading is'nt it ?
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More like good luck unless he did the same thing, say, five times, in which case you might start to believe it was guru stuff.
 
Vasco da Banana said:
More like good luck unless he did the same thing, say, five times, in which case you might start to believe it was guru stuff.
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I dont think simon said the guy didn't have any losses, He just said he had a really good winning run, If you enter a trade you are confident about without a stop then you are in until you decide ether cut or take the profit, Whatever horror stories you hear about manipulated spikes or slippage, It wouldn't affect you providing you had enough to cover the margin.

Just to add on to that, its good to read Dollars post how he has been spread betting for years, made profit and is happy with his SB company and willing to continue doing so.
 
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samirs said:
so he was basically gambling and had a phenomenal run....you mean he did not have a significant loss in the entire run...also how long did it take him to achieve this feat
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Best if we see a statement. Otherwise anyone can claim this or that BS. But I am sure we are not going to see one, and the reason will be something to do with libel
 
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BeginnerJoe said:
Best if we see a statement. Otherwise anyone one can claim this or that BS. But I am sure we are not going to see one, and the reason will be something to do with libel
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Joe, its well known that you are anti-spreadbetting and each to their own, You also seem to have a chip on your shoulder regarding CS, I for one think Simon always gives intelligent and informative posts regarding SB and especially questions regarding CS.

This libel thing only came up when you pushed the boundaries what you can and can't say on public forums.

Stick a £100 in a CS account and try them first hand, then come back and report.
 
samirs said:
completely illogical post

- if you enter a trade without stop it may work a couple of times as a matter of chance. But sooner than later a trade will come and wipe you off completely.
- secondly from Simon's post it is clear that the punter started with marginal capital and was taking risks of £200 / £300 per point. This does not work with large stops and does not give chance to stop properly. A 20 points move against you and you are bleeding to death.
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It's the sort of technique that works brilliantly on demo accounts.
 
capitalspreads said:
our biggest winner versus initial deposit was over 340k from a deposit of just 4k. (a BT engineer from brentwood)

So in the case of the BT engineer the most LCG could 'win' was 4k whereas he made £340k

Simon
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There is nowhere that states the timescale that this money was made thus rendering the client reckless in any way with his strategy, It may of been built up over time using excellent money management, Also there is no evidence that he was betting £200 - £300 per point at the start with his 4k starting capital.
 
mike. said:
There is nowhere that states the timescale that this money was made thus rendering the client reckless in any way with his strategy, It may of been built up over time using excellent money management, Also there is no evidence that he was betting £200 - £300 per point at the start with his 4k starting capital.
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There no evidence this guy existed.
 
What are you actually arguing here samirs ? that he was a gambler, irresponsible, big risk taker ? The guy made £ loads, his strategy, whatever it incorporated, worked, end of.
 
Yes here is a statement. Dear mr BT guy, i enclose a cheque for £340.000 best regards simon. xx


happy now ?
 
mike. said:
Yes here is a statement. Dear mr BT guy, i enclose a cheque for £340.000 best regards simon. xx


happy now ?
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Thank you. This passes my statements verification. Now I endorse this BT guy unreservedly.
 
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