Spreadbetting Company reviews for use with Forex Net Trap

This is a discussion on Spreadbetting Company reviews for use with Forex Net Trap within the Forex Net Trap forums, part of the Specialists' Corner category; Originally Posted by Rugby Trader will definitely have to demo - trade extensively before i use a proper forex broker! ...

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Old Aug 23, 2010, 5:40pm   #25
Joined Jun 2010
Re: Spreadbetting Company reviews for use with Forex Net Trap

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Originally Posted by Rugby Trader View Post
will definitely have to demo - trade extensively before i use a proper forex broker!
Yes, you certainly have to be aware of which pair you are trading when you work out your risk. There's not a huge amount of variation though except for eurgbp, which has a considerably higher pip value.
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Old Aug 23, 2010, 6:45pm   #26
 
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Re: Spreadbetting Company reviews for use with Forex Net Trap

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Originally Posted by Wagtail View Post
On smart live markets when you enter trade volume, you are entering pounds per pip. With a regular mt4 boker (non spread bet), the trade size (volume) is in lots. One standard lot is $10 per pip for cable (£10 per pip for eurgbp, 10chf for usdchf etc).
This is what happens. Ok the jargon is different for volume size / bet size but the effect is identical.

For instance this morning on SLM MT4 I placed pending order Buy @ 1.5577 , TP 1.5602 (25 pips / lots). Volume size (£ per pip) was set to 2.00 (£2 a pip) SL set @ 1.5537 (40 pips) and placed order.

I can place volume sizes from 10p (0.10) to £50 (50.00) online. You do need much bigger margin cover than IG / ETX etc though as I have found I need to have £650 in the account to place trades @ £4 pip combined total.

It seems to take no account for stoploss, it cares not if the S/L is 10 pips or 100 pips @ £4 pip, if the margin cover is not there the pending order will hit trigger point but not place due to not enough margin.

But I do quite like the platform and as long as you adjust for the different jargon it's much the same as IG / ETX / etc just with slightly different chart price levels (0.5-1 pip) and a 2 pip spread.

So not sure what your worried about Mike? MT4 via SLM seems pretty much like all the others to me just not as dumbed down slick pure S/B platform.

You do realise SLM have their own spreadbetting currency pair codes that end in "SB" don't you? I assume you can select GBPUSD too but then this may be leveraged as you described?

You need to select GBPUSDSB , this is the spreadbetted format for cable in MT4.

Maybe this is your problem?

M
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Old Aug 24, 2010, 12:33pm   #27
Joined May 2010
Re: Spreadbetting Company reviews for use with Forex Net Trap

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Originally Posted by mark120169 View Post
This is what happens. Ok the jargon is different for volume size / bet size but the effect is identical.

For instance this morning on SLM MT4 I placed pending order Buy @ 1.5577 , TP 1.5602 (25 pips / lots). Volume size (£ per pip) was set to 2.00 (£2 a pip) SL set @ 1.5537 (40 pips) and placed order.

I can place volume sizes from 10p (0.10) to £50 (50.00) online. You do need much bigger margin cover than IG / ETX etc though as I have found I need to have £650 in the account to place trades @ £4 pip combined total.

It seems to take no account for stoploss, it cares not if the S/L is 10 pips or 100 pips @ £4 pip, if the margin cover is not there the pending order will hit trigger point but not place due to not enough margin.

But I do quite like the platform and as long as you adjust for the different jargon it's much the same as IG / ETX / etc just with slightly different chart price levels (0.5-1 pip) and a 2 pip spread.

So not sure what your worried about Mike? MT4 via SLM seems pretty much like all the others to me just not as dumbed down slick pure S/B platform.

You do realise SLM have their own spreadbetting currency pair codes that end in "SB" don't you? I assume you can select GBPUSD too but then this may be leveraged as you described?

You need to select GBPUSDSB , this is the spreadbetted format for cable in MT4.

Maybe this is your problem?

M
G'day Mark,

A standard MT4 Platform doesn't operate quite as simply as "price per pip" as there are other considerations to consider. Firstly there's the size of your account, the leverage you have selected on that account, and lastly the "Swap" price.

Attached is an Alpari Demo trade (third trade on this account) I did last Thursday. Account size started at £3,000, Leverage was 100:1.

I placed a Buy Order on GBP/USD. The trade volume was 1.0 and it closed it for a +50 pip profit. On this trade, the actual amount "won" (as you can see) was £321.67. The Swap was -1.73.

"Swap" is when the trader and the broker trade one currency for another at an agreed rate and then convert those selected currencies back at a selected date. Currency swap deals with the exchange of interest in one currency for the same interest in another currency. It is referred to as a foreign exchange transaction.

Interest rate swap is an agreement where one stream of interest payments is exchanged for another. In other words, it is the exchange of one set of cash for another based on the interest rate conditions. Interest rate swap is used to manage the exposure to instability in interest rates or to get lower margin interest rates.

It's not quite so "simple" as "price per pip."

Regards,
MD

ps: this is the case with Alpari which is a standard MT4 Platform.
pps: I wouldn't risk this amount on a live account but I was just demo-ing
ppps: I can't get SmartLive platform charts to run on my pc at the moment but will do a trade when I have it fixed.
Attached Thumbnails
trade.png  

Last edited by MikesDirect; Aug 24, 2010 at 12:39pm.
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Old Aug 24, 2010, 12:59pm   #28
Joined May 2010
Re: Spreadbetting Company reviews for use with Forex Net Trap

You do realise SLM have their own spreadbetting currency pair codes that end in "SB" don't you? I assume you can select GBPUSD too but then this may be leveraged as you described?

You need to select GBPUSDSB , this is the spreadbetted format for cable in MT4.

Maybe this is your problem?

M[/QUOTE]

Mark,

As mentioned earlier, for some reason i can't get SLM's charts to load on my download. Will keep trying and check it out when it's all working.

Regards,
MD
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Old Aug 24, 2010, 2:06pm   #29
 
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Re: Spreadbetting Company reviews for use with Forex Net Trap

mark120169 started this thread
Quote:
Originally Posted by MikesDirect View Post
You do realise SLM have their own spreadbetting currency pair codes that end in "SB" don't you? I assume you can select GBPUSD too but then this may be leveraged as you described?

You need to select GBPUSDSB , this is the spreadbetted format for cable in MT4.

Maybe this is your problem?

M
Mark,

As mentioned earlier, for some reason i can't get SLM's charts to load on my download. Will keep trying and check it out when it's all working.

Regards,
MD[/QUOTE]

I had this issue having tried the basic MT4 demo then the SLM demo staright after, to cure this I uninstalled MT4 from windows, deleted the MT4 folders in program files and then installed SLM MT4 live from scratch. It worked straight away.

M
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Old Aug 24, 2010, 2:48pm   #30
Joined May 2010
Re: Spreadbetting Company reviews for use with Forex Net Trap

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Originally Posted by mark120169 View Post
Mark,

As mentioned earlier, for some reason i can't get SLM's charts to load on my download. Will keep trying and check it out when it's all working.

Regards,
MD
I had this issue having tried the basic MT4 demo then the SLM demo staright after, to cure this I uninstalled MT4 from windows, deleted the MT4 folders in program files and then installed SLM MT4 live from scratch. It worked straight away.

M[/QUOTE]

I'll try that... forgot to mention the spread too on the above example.
MD
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Old Aug 27, 2010, 11:45am   #31
Joined May 2010
Re: Spreadbetting Company reviews for use with Forex Net Trap

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Originally Posted by MikesDirect View Post
G'day Mark,

A standard MT4 Platform doesn't operate quite as simply as "price per pip" as there are other considerations to consider. Firstly there's the size of your account, the leverage you have selected on that account, and lastly the "Swap" price.

Attached is an Alpari Demo trade (third trade on this account) I did last Thursday. Account size started at £3,000, Leverage was 100:1.

I placed a Buy Order on GBP/USD. The trade volume was 1.0 and it closed it for a +50 pip profit. On this trade, the actual amount "won" (as you can see) was £321.67. The Swap was -1.73.

"Swap" is when the trader and the broker trade one currency for another at an agreed rate and then convert those selected currencies back at a selected date. Currency swap deals with the exchange of interest in one currency for the same interest in another currency. It is referred to as a foreign exchange transaction.

Interest rate swap is an agreement where one stream of interest payments is exchanged for another. In other words, it is the exchange of one set of cash for another based on the interest rate conditions. Interest rate swap is used to manage the exposure to instability in interest rates or to get lower margin interest rates.

It's not quite so "simple" as "price per pip."

Regards,
MD

ps: this is the case with Alpari which is a standard MT4 Platform.
pps: I wouldn't risk this amount on a live account but I was just demo-ing
ppps: I can't get SmartLive platform charts to run on my pc at the moment but will do a trade when I have it fixed.
OK I've sussed out the figures and I think it is in fact as "simple" as Mark pointed out!

On the above trade I made +50pips profit. On GBP/USD, a position of 1 Lot (I set the volume to 1) generates $10 per pip. Therefore, the trade equated to 50 x $10 = $500. The $500 profit is then converted to the currency of my account which is GBP. So, $500 converted to GBP = £321.67 (the rate at the time).

I hope that clears things up and you guys are not scared off from using an MT4 platform!

Regards,
MD
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Old Aug 27, 2010, 11:55am   #32
Joined May 2010
Re: Spreadbetting Company reviews for use with Forex Net Trap

Quote:
Originally Posted by MikesDirect View Post
G'day Mark,

A standard MT4 Platform doesn't operate quite as simply as "price per pip" as there are other considerations to consider. Firstly there's the size of your account, the leverage you have selected on that account, and lastly the "Swap" price.

Attached is an Alpari Demo trade (third trade on this account) I did last Thursday. Account size started at £3,000, Leverage was 100:1.

I placed a Buy Order on GBP/USD. The trade volume was 1.0 and it closed it for a +50 pip profit. On this trade, the actual amount "won" (as you can see) was £321.67. The Swap was -1.73.

"Swap" is when the trader and the broker trade one currency for another at an agreed rate and then convert those selected currencies back at a selected date. Currency swap deals with the exchange of interest in one currency for the same interest in another currency. It is referred to as a foreign exchange transaction.

Interest rate swap is an agreement where one stream of interest payments is exchanged for another. In other words, it is the exchange of one set of cash for another based on the interest rate conditions. Interest rate swap is used to manage the exposure to instability in interest rates or to get lower margin interest rates.

It's not quite so "simple" as "price per pip."

Regards,
MD

ps: this is the case with Alpari which is a standard MT4 Platform.
pps: I wouldn't risk this amount on a live account but I was just demo-ing
ppps: I can't get SmartLive platform charts to run on my pc at the moment but will do a trade when I have it fixed.
OK I've sussed out the figures and I think it is in fact as "simple" as Mark pointed out!

On the above trade I made +50pips profit. On GBP/USD, a position of 1 Lot (I set the volume to 1) generates $10 per pip. Therefore, the trade equated to 50 x $10 = $500. The $500 profit is then converted to the currency of my account which is GBP. So, $500 converted to GBP = £321.67 (the rate at the time).

I hope that clears things up and you guys are not scared off from using an MT4 platform! I much prefer this method and I have had absolutley no slippage issues with Alpari.

Regards,
MD

Last edited by MikesDirect; Aug 27, 2010 at 1:40pm.
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