Starting to get 'Please Wait for a Quote' after making 150% return

[gle101]

they may seem like small stakes but in some illiquid markets they may actually not be. not every underlying market has an endless stream of liquidity. some have close to none, some have just a side, some are RFQ. you need to understand what your spreadbet stake converts to in notional and then see what the depth of liquidity is in the underlying to judge what is 'small' and what is actually market size.

Yes correct, but most of the trades are the major indices, forex and stocks. For the most cases the market maker give you liquidity.

 

[gle101]

and tax

Yes my guess is that UK soon will give in and starting taxing SB resulting it to vanish from the market, this as well as the gambling status of it. CFDs is regarded as financial instruments and the MiFID financial directives influence will be more prominent.

 

[highbury fx]

Yes correct, but most of the trades are the major indices, forex and stocks. For the most cases the market maker give you liquidity.

absolutely correct. the market maker is giving you liquidity. That liquidity though is not endless and there is a point where the market maker will need to hedge and if the underlying isn't there then the market maker will potentially reject the trade or delay the order fill until his order is filled in the market.. this shouldn't be the reasons for all out acrimony between market maker and client, there should be an element of understanding and etiquette, surely.

Or am I wrong. Should the spreadbet market maker accept every trade regardless of tolerance checks or size? that would be a business model that needed to have some very deep pockets because you'd have 7 figure swings daily.

LCG have a market cap of sub £50m... how many 7 figure swings daily that went against them could they suffer before they made 100 people redundant? or should they have a model that satisfies the vast majority of their clients and act in a responsible manner?

 

[highbury fx]

We haven't even begun

we? its not me versus trade2win. Understand I'm not foe, i'm friend.. I come in peace

I love a bit of banter and 30 years working in 4 different financial centres for the worlds largest brokerages has given me a nice thick skin...

 

[neil324]

Yes my guess is that UK soon will give in and starting taxing SB resulting it to vanish from the market, this as well as the gambling status of it. CFDs is regarded as financial instruments and the MiFID financial directives influence will be more prominent.

Just had a shake up in the gambling taxes. Bingo and fruit machines.

Governments seem hell bent on protecting the City of London financial markets, what makes you think they would abolish SB.

 

[gle101]

absolutely correct. the market maker is giving you liquidity. That liquidity though is not endless and there is a point where the market maker will need to hedge and if the underlying isn't there then the market maker will potentially reject the trade or delay the order fill until his order is filled in the market.. this shouldn't be the reasons for all out acrimony between market maker and client, there should be an element of understanding and etiquette, surely.

Or am I wrong. Should the spreadbet market maker accept every trade regardless of tolerance checks or size? that would be a business model that needed to have some very deep pockets because you'd have 7 figure swings daily.

LCG have a market cap of sub £50m... how many 7 figure swings daily that went against them could they suffer before they made 100 people redundant? or should they have a model that satisfies the vast majority of their clients and act in a responsible manner?

Aren't you misinterpreting my post? My point was the real market liquidity is for the most part very good for the majors, and most of the SB trades are within these instruments. But sure, it is the market makers task to gives us liquidity, but not to any price tag of their choosing.

 

[gle101]

Just had a shake up in the gambling taxes. Bingo and fruit machines.

Governments seem hell bent on protecting the City of London financial markets, what makes you think they would abolish SB.

Sweden and Germany have got it already, might be some other EU countries as well. I also see the need to get rid of SB from the client, regulator and MiFID point of view.

 

[highbury fx]

Aren't you misinterpreting my post? My point was the real market liquidity is for the most part very good for the majors, and most of the SB trades are within these instruments. But sure, it is the market makers task to gives us liquidity, but not to any price tag of their choosing.

yes, you're right. the underlying liquidity in the majors is very very deep.. you could get half a yard of euros away in a liquid eur/usd market within a couple of pips start to finish..

I was trying to demonstrate that its not always as it appears and whilst spreadbet firms have essentially the same model as each other they each have a very different risk appetite and it is up to the trader who doesn't fit the normal profile to establish where he is most likely to get his business done to his satisfaction.

 

[gle101]

yes, you're right. the underlying liquidity in the majors is very very deep.. you could get half a yard of euros away in a liquid eur/usd market within a couple of pips start to finish..

I was trying to demonstrate that its not always as it appears and whilst spreadbet firms have essentially the same model as each other they each have a very different risk appetite and it is up to the trader who doesn't fit the normal profile to establish where he is most likely to get his business done to his satisfaction.

Yes OK, I am on board on that.

 

[highbury fx]

Yes OK, I am on board on that.

phew a friendly retort lol

i think i'll quit whilst i'm ahead... I am off to get my cheese sandwich

 

[gle101]

phew a friendly retort lol

i think i'll quit whilst i'm ahead... I am off to get my cheese sandwich

Yes I think I will do the same, ha ha.

 

[12WBT]

Can S/B companies now put customer orders straight to the underlying market now.
All computer automated with no human intervention.
This would allow them to keep the sort of customers who are trading 30/100 plus times a day at a higher point level and for shorter movements.

 

[counter_violent]

Just had a shake up in the gambling taxes. Bingo and fruit machines.

Governments seem hell bent on protecting the City of London financial markets, what makes you think they would abolish SB.

They wont abolish SB, so don't worry about that. As long as SB co's are making profits and the govt gets it's wack, then it has to be the easiest money they will ever make, with the added benefit that individuals are moving targets, but SB co's are static !

 

[neil324]

They wont abolish SB, so don't worry about that. As long as SB co's are making profits and the govt gets it's wack, then it has to be the easiest money they will ever make, with the added benefit that individuals are moving targets, but SB co's are static !

I'm not, was just curious as to why others thought they might.

 

[peakoil]

@ Highbury FX - just want to say that there are plenty lurking here, my being one of them, until now, who have very much appreciated your most excellent input to this thread.

May I say too that it is abundantly clear to those who do their own thinking, that you have come here with no specific agenda, save for that of educating others. Which is no bad thing, rather, most welcome indeed.

Thank you.

 

[highbury fx]

@ Highbury FX - just want to say that there are plenty lurking here, my being one of them, until now, who have very much appreciated your most excellent input to this thread.

May I say too that it is abundantly clear to those who do their own thinking, that you have come here with no specific agenda, save for that of educating others. Which is no bad thing, rather, most welcome indeed.

Thank you.

Thank you very much. That is really encouraging to read.

 

[gle101]

@ Highbury FX - just want to say that there are plenty lurking here, my being one of them, until now, who have very much appreciated your most excellent input to this thread.

May I say too that it is abundantly clear to those who do their own thinking, that you have come here with no specific agenda, save for that of educating others. Which is no bad thing, rather, most welcome indeed.

Thank you.

Yes I agree, Highbury fx contribution is much appreciated. He has a good way of expressing himself and well informed about the industry. Although all that said in his favor, his unconditional love for the user T&C is a little bit too much for me.

 

[Spread-Bettor]

Can S/B companies now put customer orders straight to the underlying market now.
All computer automated with no human intervention.
This would allow them to keep the sort of customers who are trading 30/100 plus times a day at a higher point level and for shorter movements.

I don't think this will happen any time in the near future!

 

[highbury fx]

Can S/B companies now put customer orders straight to the underlying market now.
All computer automated with no human intervention.
This would allow them to keep the sort of customers who are trading 30/100 plus times a day at a higher point level and for shorter movements.

Yes. Depending on what platform you're trading on.

The spread bet platforms that are developed by individual companies such as IG, city index, etx, cap spreads etc may not be able to.

Metatrader certainly can. If you are profiled as an A book client your trades will be routed straight to the market and hedged.

Liquidity providers aren't overjoyed about receiving lots of tickets for tiny deals but the sum volume and the type of flow means they are prepared to accept the business from the spread bet broker.

Clients that trade more than 20 times per day are on the radar because of their frequency rather than prowess. Once a client is hedged the s/b firm has no interest in how long the client remains in the trade.

 

[tar]

As i understand they try to keep a balanced book within a certain risk parameters and a predefined market exposure thresholds , i don't believe for one second they hedge individual trades - i am talking about major markets like indices and fx ofcourse - , i read something about that in IG's annual report , and i recall something similar from CMC's Peter .