Slippage

[simonfudge]

HELP !!

I have opened a practice account with Capital Spreads.

I was alarmed when I discovered that my first trade suffered slippage of over 4% when getting filled. It was SABmiller quoted on the LSE. The price did not gap, I was told that it was due to extreme volitility. I'm still in the trade and I do not know how much slippage I will suffer trying to exit.

I notice that they do not provide any facility to set Limit Orders.

Has anyone else suffered similar issues with Capital Spreads or other spread betting companies - 4% slippage 1 way seeems excessive - It is difficult to imagine how to over come 8% slippage if it is as bad on the way out. ANY ADVICE PLEASE

Are there SB companies out there that allow Limit Orders?

Simon

 

[fast trader7]

HELP !!

I have opened a practice account with Capital Spreads.

I was alarmed when I discovered that my first trade suffered slippage of over 4% when getting filled. It was SABmiller quoted on the LSE. The price did not gap, I was told that it was due to extreme volitility. I'm still in the trade and I do not know how much slippage I will suffer trying to exit.

I notice that they do not provide any facility to set Limit Orders.

Has anyone else suffered similar issues with Capital Spreads or other spread betting companies - 4% slippage 1 way seeems excessive - It is difficult to imagine how to over come 8% slippage if it is as bad on the way out. ANY ADVICE PLEASE

Are there SB companies out there that allow Limit Orders?

Simon

Simon,
They do allow limit orders, just go to orders on your screen and you can amend your existing order.Remember, the practice account does not reflect the real price! even though CS says it was real.

Just open a real account any SB company and some of them allow 10p a point and you can test your strategies.

Good luck

 

[gle101]

HELP !!

I have opened a practice account with Capital Spreads.

I was alarmed when I discovered that my first trade suffered slippage of over 4% when getting filled. It was SABmiller quoted on the LSE. The price did not gap, I was told that it was due to extreme volitility. I'm still in the trade and I do not know how much slippage I will suffer trying to exit.

I notice that they do not provide any facility to set Limit Orders.

Has anyone else suffered similar issues with Capital Spreads or other spread betting companies - 4% slippage 1 way seeems excessive - It is difficult to imagine how to over come 8% slippage if it is as bad on the way out. ANY ADVICE PLEASE

Are there SB companies out there that allow Limit Orders?

Simon

It usually takes 2-3 email before they change their standpoint. The first answer you get is for certain a negative reply. Keep presenting facts and be firm in your standpoint if you feel you been unfairly treated. Do not become rude, it will not do any good.They usually come around and say they will credit your account as a gesture of goodwill. I have had very good experience with CS in this regard. With a practice account it is nothing to bother about, with a real account though, it can save you a lot of money.

 

[simonfudge]

Thank you for your reply.

I wrote in haste yesterday. In fact the slippage was not 4% but more like 21/2%. CS do not show the price of the order, only the price at which filled (which makes me suspicious). Also , there was a bit of a gap that morning but I still feel the slippage was excessive.

I have checked with CS and they do not allow Limit style oreders. It is my understanding that they fill all orders on a 'best execution' basis. They will fill all orders made and it is not possible to create a limit order.

If I have understood the situatuion correctly then I must find a different SB firm who do allow Limit orders. Thanks for your reply and good luck.
Simon

 

[simonfudge]

It usually takes 2-3 email before they change their standpoint. The first answer you get is for certain a negative reply. Keep presenting facts and be firm in your standpoint if you feel you been unfairly treated. Do not become rude, it will not do any good.They usually come around and say they will credit your account as a gesture of goodwill. I have had very good experience with CS in this regard. With a pratice account it is nothing to bother about, with a real account though, it can save you a lot of money.

Thanks for the reply. CAn you confirm if CS allow limit orders on their real account?
S

 

[gle101]

Thanks for the reply. CAn you confirm if CS allow limit orders on their real account?
S

Yes they have limit order. But a limit order is a market order and will be filled at the "best" price. With a gap in the market there can be a considerable slippage and the order is filled at the next "best" price. I don't think changing SB will do you any good in this regard.

 

[new_trader]

Yes they have limit order. But a limit order is a market order and will be filled at the "best" price. With a gap in the market there can be a considerable slippage and the order is filled at the next "best" price. I don't think changing SB will do you any good in this regard.

There appears to be confusion about what a Limit order is and what slippage is.

'Slippage' on a Limit order is GOOD, not bad. So if the trade was opened with a Limit order then there is nothing to complain about. If you are worried about a trade and slippage then close the order immediately at MARKET. Slippage only applies to STOP orders.

 

[gle101]

Slippage only applies to STOP orders.

I wish that was the case. I have had slippage (with no re-quote) on market orders.

 

[new_trader]

I wish that was the case. I have had slippage (with no re-quote) on market orders.

That doesn't make sense. A market order is a market order. Slippage is slippage.

 

[gle101]

That doesn't make sense. A market order is a market order. Slippage is slippage.

If I am not entirely mistaken, I think you are talking about DMA. With SB fixed price, slippage can be used as an "excuse" for giving a bad price, when there actually is no slippage. I understand your point, 'A market order is a market order. Slippage is slippage'.

 

[new_trader]

If I am not entirely mistaken, I think you are talking about DMA. With SB fixed price, slippage can be used as an "excuse" for giving a bad price, when there actually is no slippage. I understand your point, 'A market order is a market order. Slippage is slippage'.

Yes, but slippage isn't the difference between what you think you will pay and what you actually pay. You are right, I am referring to DMA but S/B is no different. If I see the ASK price is X and I want to BUY@Market, I can't be certain I will pay X. It may change the split second I hit 'BUY' and I may get X+Y, or X-Y. That IS NOT slippage. Slippage is putting in a STOP order below or above market and getting filled @X+Y, or X-Y.

When you are trading with market orders you are saying fill the order at WHATEVER the BID/ASK is NOW (which can change in a split second).

 

[gle101]

Yes, but slippage isn't the difference between what you think you will pay and what you actually pay. You are right, I am referring to DMA but S/B is no different. If I see the ASK price is X and I want to BUY@Market, I can't be certain I will pay X. It may change the split second I hit 'BUY' and I may get X+Y, or X-Y. That IS NOT slippage. Slippage is putting in a STOP order below or above market and getting filled @X+Y, or X-Y.

When you are trading with market orders you are saying fill the order at WHATEVER the BID/ASK is NOW (which can change in a split second).

Yes your definition is right. But when it comes to Market Makers this doesn't always holds true, as they are using the word "slippage" in a very widely sense of the word. This as I said, often to justify a bad price. It has happened to me quite a few times with SB companies.

 

[new_trader]

Yes your definition is right. But when it comes to Market Makers this doesn't always holds true, as they are using the word "slippage" in a very widely sense of the word. This as I said, often to justify a bad price. It has happened to me quite a few times with SB companies.

I have had 'bad' fills with DMA, sometimes 0.50 points from the last Bid/Ask I saw. If you can't live with it, don't trade with market orders.