hellokimchi
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Some people on these boards say that spreadbetting quotes are different from the underlying market, others have said this is boll**ks. I've contacted some brokers and get varying responses, including one saying there's no reason for UK traders to use CFD's as their spreadbetting platform, spreads, and prices are the same and there's no tax.
As of now, the mid-prices on CMC are:
underlying market / CFD / SB - with spreads for CFD/SB
Vodafone: 143.5 / 141 (spread 1.5) / 149.25 (spread 0.25)
UK100: 6286 / 6196 (spread 4) / 6386 (spread 2)
S&P500 : 1399 / 1397 (spread 0.5) / 1447 (spread 0.5)
And the trend continues - CFD's quoted below the market and SB quoted above.
The SB especially seem to trade at prices that were no where near touched that day.
I'm trying to test my system, but even though it's swing/position trading, I'm not sure I can deal with prices 100 points away from the underlying market. CFD's seem closer - but what's the point of quoting prices for a market that are no where near the true price?
I want to trade the market prices and not some random value above it. When people spreadbet, i assume they trade the spreadbet and not the market? This would make backtesting futile for spreadbet systems.
I also thought CFD's tracket the market much closer - this doesn't seem to be the case either. And look at those huge spreads on CFD's compared the SB!
What am I missing here? I'm sure there's something fundamental I'm not accounting for.
As of now, the mid-prices on CMC are:
underlying market / CFD / SB - with spreads for CFD/SB
Vodafone: 143.5 / 141 (spread 1.5) / 149.25 (spread 0.25)
UK100: 6286 / 6196 (spread 4) / 6386 (spread 2)
S&P500 : 1399 / 1397 (spread 0.5) / 1447 (spread 0.5)
And the trend continues - CFD's quoted below the market and SB quoted above.
The SB especially seem to trade at prices that were no where near touched that day.
I'm trying to test my system, but even though it's swing/position trading, I'm not sure I can deal with prices 100 points away from the underlying market. CFD's seem closer - but what's the point of quoting prices for a market that are no where near the true price?
I want to trade the market prices and not some random value above it. When people spreadbet, i assume they trade the spreadbet and not the market? This would make backtesting futile for spreadbet systems.
I also thought CFD's tracket the market much closer - this doesn't seem to be the case either. And look at those huge spreads on CFD's compared the SB!
What am I missing here? I'm sure there's something fundamental I'm not accounting for.
