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

[ffsear]

From when I worked at Cantors this was the case. We had a position monitor for every market we took bets on. (I was actually on the sports spreads desk but the financials worked in the exactly the same way).

Every day we had a view and an exposure limit on every market. Once that exposure limit is approached the hedging would start. Firstly internally with the other departments be it FX, CFDs, OPTIONS etc. Simply shouting across to the other dealers to see if they can take a chunk on their book, otherwise they'd be hitting the external inter dealer broker lines to offload.(being part of of BGC made this easy)

This is why, as a dealer, If your near your exposure limit, and you've got someone jumping in and out the market every 2 mins at £100 + a point, its a real nightmare. Hence a message would pop up on your screen and you'd have to physically accept the trade. Obviously your trying to hedge it first.

 

[gle101]

There are a few market makers for CFDs (MT4) that gives you direct market spread (futures) on the indices. They will charge you a commission, and it will usually mount to be quite an expensive deal.

 

[Spread-Bettor]

From when I worked at Cantors this was the case. We had a position monitor for every market we took bets on. (I was actually on the sports spreads desk but the financials worked in the exactly the same way).

Every day we had a view and an exposure limit on every market. Once that exposure limit is approached the hedging would start. Firstly internally with the other departments be it FX, CFDs, OPTIONS etc. Simply shouting across to the other dealers to see if they can take a chunk on their book, otherwise they'd be hitting the external inter dealer broker lines to offload.(being part of of BGC made this easy)

This is why, as a dealer, If your near your exposure limit, and you've got someone jumping in and out the market every 2 mins at £100 + a point, its a real nightmare. Hence a message would pop up on your screen and you'd have to physically accept the trade. Obviously your trying to hedge it first.

I have a friend who once worked for SpreadCo and he explained to me the process in the exact way you just did, but as tar mentioned in the previous post, NOT ALL THE POSITIONS ARE HEDGED IN THE EXTERNAL MARKET!

 

[tar]

There are a few market makers for CFDs (MT4) that gives you direct market spread (futures) on the indices. They will charge you a commission, and it will usually mount to be quite an expensive deal.

Doubt it , these are cfds not DMA - just a mirror - , that's why they allow partial lots , like 0.01 lot or 0.1 , yes they offer you the exchange spread - sometimes they widen it though - and they add a commission . Example : FXpro .

 

[ffsear]

I've witnessed first hand the wave of panic flowing across the dealing room when these guys get caught out on the wrong side of the market.

"JON, LOSE ME 1000 FTSE"

"I CAN'T"

"**** YOU JON"

"LOOK ELSEWHERE"

"WHERE?"

"I DON'T CARE JUST GET RID OF IT"

"OK YOU LOSE 1000 AT 5735"

"YOU ****ING **** ****BAG"


It was great to watch

 

[gle101]

Doubt it , these are cfds not DMA - just a mirror - , that's why they allow partial lots , like 0.01 lot or 0.1 , yes they offer you the exchange spread - sometimes they widen it though - and they add a commission . Example : FXpro .

Yes as I mention, these are CFDs and not futures. The company that comes in mind first is Liquid Markets. They might have a different hedging structure.

 

[tar]

The real meat is not in the bid-ask spread , its when the retail herd get caught offside , as we all know most retail traders fade strong moves , and here the broker would love to have some market exposure - ofcourse up to a certain threshold - to bank some profits , otherwise if they do hedge every trade the whole business is not worth it for them , they charge 1 point on FTSE and thats what you get on the futures .

 

[tar]

Yes as I mention, these are CFDs and not futures. The company that comes in mind first is Liquid Markets. They might have a different hedging structure.

Maybe doubt it though , do they offer partial lots ?

 

[gle101]

Maybe doubt it though , do they offer partial lots ?

Yes, for what I remembered when checking them out, the spread didn't change but mirrorred the futures exactly. But you have to check it out for yourself to be sure.The fastest MT4 platform I have seen, 65ms execution time on orders.

 

[tar]

Yes, for what I remembered when checking them out, the spread didn't change but mirrorred the futures exactly. But you have to check it out for yourself to be sure.The fastest MT4 platform I have seen, 65ms execution time on orders.

If they offer partial lots then its not DMA . Same with FXpro they mirror the futures but i noticed they widen the spread a bit when the markets are moving ...

 

[tar]

I recall Simon - Capitalspreads - said something about that , he said range bound markets are not good for the business .

 

[gle101]

If they offer partial lots then its not DMA . Same with FXpro they mirror the futures but i noticed they widen the spread a bit when the markets are moving ...

Correct it is not DMA, if Liquid Markets will widen the spread during a volatile market I don't know. I didn't notice it though, but is was a couple of month back so I can't give a full proof observation guarantee.

 

[12WBT]

From when I worked at Cantors this was the case. We had a position monitor for every market we took bets on. (I was actually on the sports spreads desk but the financials worked in the exactly the same way).

Every day we had a view and an exposure limit on every market. Once that exposure limit is approached the hedging would start. Firstly internally with the other departments be it FX, CFDs, OPTIONS etc. Simply shouting across to the other dealers to see if they can take a chunk on their book, otherwise they'd be hitting the external inter dealer broker lines to offload.(being part of of BGC made this easy)

This is why, as a dealer, If your near your exposure limit, and you've got someone jumping in and out the market every 2 mins at £100 + a point, its a real nightmare. Hence a message would pop up on your screen and you'd have to physically accept the trade. Obviously your trying to hedge it first.

Hi ffsear

So when they hit there exposure limit, could they put a trader on referral for a short period.

Then when the book is square, could they start taking trades from that person again.

Also would the exposure limits be hit everyday.

Great thread to read, thanks everyone.

 

[charlesD]

Yes, tough industry for sure.

So they're making a loss huh? Speaks for itself, it must be a poorly run inefficient company! In fact I would be more afraid that they were a company running losses than a company making profits.

Talking of poorly run I much preferred their older charting software, before they updated it, which was suppose to make it better but I found worse, well ok there were better drawing features and stuff, but the data availability for a lot of the instruments was curtailed somewhat from years to months, so before you could view the price over several years only for this to be shortened to months on a lot of securities, which I didn't like. They've updated again to the new Advantage Web which I'm currently checking out and haven't had time to fully adjust to yet, hopefully it was money well invested.