The other side

counter_violent said:
Well DA SB both provide a platform as a means to trade....who cares weather the trade is into the market or against the S B provider....I don't care who's money I take !
Click to expand...

When I trade, my broker is placing a trade for me and collecting a fee.

That is a litlle different from an SB provider who profits when I lose. Also - with an SB broker, you are buying nothing. You are not trading against the market but against your bookie.

Of course, you could go for the old chestnut that the SB can offset your 'bets' on the market but I would wager that in the majority of punters cases, this doesn't happen.

I like regular brokers that are just as happy when I win as when I lose.
 
Going long on cable at 11:45 yesterday I was pleasantly surprised there wasn't a double spike (both directions). As always, when such an 'obvious' trade works, I wonder who on earth is 'betting' the other way?...Who cares...watching the 'green candle' grow in seconds, like Yoda's light saber with a hard on, is always nice:D
 
Black Swan said:
Going long on cable at 11:45 yesterday I was pleasantly surprised there wasn't a double spike (both directions). As always, when such an 'obvious' trade works, I wonder who on earth is 'betting' the other way?...Who cares...watching the 'green candle' grow in seconds, like Yoda's light saber with a hard on, is always nice:D
Click to expand...

Wish I knew;)

Donations! How dare you have the audacity to joke that the Overseers of our wonderful democracy act in such an unscrupulous manner. To suggest that the Lords and Peers - who are better than us - would wilfully carry out their duties in a way whereby they would personally benefit and yet not serve the best interest of the public. You're a Terrorist.
 
Iv had SB's try to screw me but mostly when iv been trying to screw them i.e. scalp a few points at a large size when the market is in free fall etc. All this talk about SB not being trading is crap, I bought cable at 1.6326 exactly one week ago. I exited most of my position today, taking about 330 pips. I used I.G Index, does that mean that those 330 pips are not valid? Should I give them back? Don't think so.
 
Iv'e always maintained there is room for both.
The SB co's call it trading...who am I to argue.
SB co's need winners on their books...if everyone lost they would soon have no business to run.

All this is largely off topic from your original post....however it does have some relevance in terms of who is taking the opposite side.
 
It's really interesting that in the UK spread betting is tax free.

That said, in Germany trading futures was tax free until Schröder became Chancellor.

Din't help me lol because I was still clueless at the time about trading.

Spreadbetting is probably ok unless you're a scalper.

Won't work then.

Remember this guy, 50 000 % in one month ?

His platform - CFD's via RBS Marketindex - started killing him with fake price shakeouts at some point when he tried emulating what he did in the competition with real money:

http://www.trade2win.com/boards/general-trading-chat/44624-55000-one-month.html

Now he's doing great scalping futures.

So longer term stuff is probably ok on SB's, just forget about scalping, fake prices and transactions are gonna kill ya outside of the demo.
 
IMO the S/B model is basically based on risk that the company takes. If they carry on getting punters, they will make money. If they hedge against profitable traders correctly they earn at least the spread less their transaction costs.

I'd say spreadbetting is trading through or taking advantage of, a rip-off broker which in turn tries to take advantage of people that don't know what they're doing.

You tellin me Tudor Jones would be getting killed if he used IG?
 
Technically Fundamental said:
IMO the S/B model is basically based on risk that the company takes. If they carry on getting punters, they will make money. If they hedge against profitable traders correctly they earn at least the spread less their transaction costs.

I'd say spreadbetting is trading through or taking advantage of, a rip-off broker which in turn tries to take advantage of people that don't know what they're doing.

You tellin me Tudor Jones would be getting killed if he used IG?
Click to expand...

Oh and don't forget to mention that if the S B co's monitor their winning clients...they have a ready made free pool of experts to show them what the markets WILL do :LOL: If I owned a SB co...i'm pretty damm sure I would be taking notice of what the winners were doing. Might even make a few quid eh !;)
 
counter_violent said:
Oh and don't forget to mention that if the S B co's monitor their winning clients...they have a ready made free pool of experts to show them what the markets WILL do :LOL: If I owned a SB co...i'm pretty damm sure I would be taking notice of what the winners were doing. Might even make a few quid eh !;)
Click to expand...


They already do make that few quid as they are the ones taking the punters losing trades and not offsetting them in the market. ;)
 
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Of course, you could go for the old chestnut that the SB can offset your 'bets' on the market but I would wager that in the majority of punters cases, this doesn't happen.
Click to expand...


I had a conversation with I G about this and they told me that they do not hedge most of the positions that their clients have with them. In other words they act exactly like a standard bookie does.


Paul
 
Oh and don't forget to mention that if the S B co's monitor their winning clients...they have a ready made free pool of experts to show them what the markets WILL do If I owned a SB co...i'm pretty damm sure I would be taking notice of what the winners were doing. Might even make a few quid eh !
Click to expand...

I am not sure why you would want to do this because if you own a SB company you will already be making millions.


Paul
 
Trader333 said:
I am not sure why you would want to do this because if you own a SB company you will already be making millions.


Paul
Click to expand...

:LOL: From all the losers yes.....making a few quid more from following the real winners would never go amis though.

Anyone on the inside know if they do follow winners ?
 
Trader333 said:
I had a conversation with I G about this and they told me that they do not hedge most of the positions that their clients have with them. In other words they act exactly like a standard bookie does.


Paul
Click to expand...

Can I ask who you had the conversation with, at what 'level'?
 
I cannot remember as it was around 2 years ago but it was with someone who had worked there a long time and was being quite open about their operations. Why do you ask ?


Paul
 
Yeah good article! Thoughts i've tried to explain to people in the past!
Whoever takes the opposite side hasn't got the same stop loss and target as you but opposite, they may be scalping, positional daily, closing a 5 year long trade, hedging a stock trade, trading spreads...
Either way, it doesn't matter... If you believe that the 'proffesional' is making the right decision going against you, you should consider changing your direction XD haha
 
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