Why did price spike on my broker but not on the FTSE?

This is a discussion on Why did price spike on my broker but not on the FTSE? within the Forex Brokers forums, part of the Commercial category; Et, I think you may want to rethink some of the info you've been fed. Correct me if I am ...

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Old Sep 16, 2017, 4:09pm   #25
Joined Aug 2017
Et,

I think you may want to rethink some of the info you've been fed.

Correct me if I am wrong but you are trading the FTSE cash index which is what your Yahoo charts show. Yahoo , google does not keep futures charts.

The SBs make their derived cash products off a " fair value " model based on the nearest month futures contract, so of course there is a large correlation between their cash product and the futures.

Thus when the futures spikes, so will the SB cash product, though the real FTSE cash may not.

You are of course wise to use stops if you intend to trade decent money, obviously @ 50p - 100p is beginners stuff so it doesn't matter as much.

Then again if you are trading decent money I would advise swtiching to futures exchange products. You must also realise that this forum is sponsored by SB firms so only natural that their products may be defacto promoted.

Ultimately it is up to you to do what you want, not for me or anyone to dictate to you.

I have to warn you now that I have taken this seriously and tried to help you , this will be a que for trollers to jump in and vent their anger.



Quote:
Originally Posted by et. View Post
Imagine you are trading £50 per point and got in at the perfect point end of wave 2 ... and then this happened.

Click the image to open in full size.

Fortunately I was trading only 50 pence per point. If I was trading serious money I would have been annoyed because the FTSE100 does not seem to have done the same move.

Was my analysis wrong or is one of these charts (Google and Yahoo data for FTSE 100) wrong?

Click the image to open in full size.

Click the image to open in full size.

Edit: I was shorting and my stop, somewhere above the high, was taken out by the spike that wasn't there on the actual? FTSE 100.
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Old Sep 16, 2017, 4:55pm   #26
 
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Originally Posted by et. View Post
Imagine you are trading....
btw what have you been up to for the 5 years since your last post ?
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Old Sep 16, 2017, 4:58pm   #27
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Sep 14, 2017, 11:49am #1

et.

308 Posts
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Old Sep 17, 2017, 10:14am   #28
 
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Originally Posted by wisefoolx View Post
obviously @ 50p - 100p is beginners stuff so it doesn't matter as much...

Then again if you are trading decent money I would advise switching to futures exchange products..
hi wf,

seeing as you brought it up again, can you clarify what decent money/size is?
what size do you trade typically?

Last edited by Kaeso; Sep 17, 2017 at 10:49am.
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Old Sep 17, 2017, 10:31am   #29
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hi wf,

seeing as you brought it up again, can you clarity what decent money/size is?
what is size do you trade typically?
He traded £5-£30 per index point previously. Now he doesn't dare to trade 1p/point.
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Old Sep 17, 2017, 6:14pm   #30
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hi wf,

seeing as you brought it up again, can you clarify what decent money/size is?
what size do you trade typically?
Well as the OP said if his size was bigger, then his account would have taken a much larger hit. What is big is subjective. As he also said he is a begginer and using very small stakes which is wise but of course things are much different when size becomes larger. So to him 5/point may be a large size, to me it is not, but to someone else a CTA perhaps 50 - 100 contracts is normal. At least the OP is honest and seems to be on the right path.
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Old Sep 17, 2017, 7:30pm   #31
 
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Originally Posted by wisefoolx View Post
Well as the OP said if his size was bigger, then his account would have taken a much larger hit. What is big is subjective. As he also said he is a begginer and using very small stakes which is wise but of course things are much different when size becomes larger. So to him 5/point may be a large size, to me it is not, but to someone else a CTA perhaps 50 - 100 contracts is normal. At least the OP is honest and seems to be on the right path.
Are you saying 50 to 100 contracts is what you meant by "decent size" ? i.e. £3.6M to £7.2M exposure?

Is this the kind of size you trade ?
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Old Sep 17, 2017, 8:33pm   #32
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Are you saying 50 to 100 contracts is what you meant by "decent size" ? i.e. £3.6M to £7.2M exposure?

Is this the kind of size you trade ?
No, as I said a CTA trades that.

CTA = An American concept whereby individual / small ventures passs SFC type exams get registered and can then legally market and trade their own and clients money, mainly on exchange products and more direct startegies.

" Mini hedge " funds if you like, without all the fancy algos et al.

So large size is relative but whatever, 50p / 1 pound a point is beginner's stuff. I hope you realise that size plays a major role; can't use the same strategy for mini stakes as you do when trade larger and larger sizes.

As you alluded a CTA would indeed have millions exposure which is why they almost always use stop losses in 1 form or another. A 100 point drop for a penny trader is nothing but for larger sizes (even for large individual traders never mind CTAs) will be disasterous.

Last edited by wisefoolx; Sep 17, 2017 at 8:42pm.
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