i don't get it , if the brokers don't hedge orders via matching client flow , and make the spread, then they're relying on the '95%' fail as profit, but what's to stop a punter coming and betting £10k per pip and getting lucky, you expose yourself to luck, or maybe they do hedge themselves in the real market, but then, they pay a spread surely!
i don't get it!
i don't get it!
LiveTradingZone
Active member
- Messages
- 193
- Likes
- 4
It is called the Futures market......no spread there 
Futures currency is the way to go! Pay only $5 commission and no spreads
Futures currency is the way to go! Pay only $5 commission and no spreads Really do some people put on £10K per pip? Is their a maximum you can bet on a pip? Can it be bigger? Does it depend on broker?
It is called the Futures market......no spread there
$5 commission on each trade of collectively? So, is spot currency and futures currency 2 separate instruments? Sorry Im a newbie trying to learn the lingo.
£10k a pip. I dont think they would accept the trade, or they might, but you'll have to have deep pockets. If someone did £10k a pip they would have to hedge a percentage of it and take a small loss on the hedge.
DashRiprock
Experienced member
- Messages
- 1,650
- Likes
- 482
$10k per pip is $100mil of whatever your trading.
so IF any spreadbet firm can do that in one go (doubt it), well tbh they are going to have to either go to one bank for the whole lot or share it between a few (won't win them any favours, i dunno maybe its not enough for a drive by?), and of course all they are going to do is widen the price.
anyone that can do $10k per pip has a private banker to do this sort of thing for them i reckon.
so IF any spreadbet firm can do that in one go (doubt it), well tbh they are going to have to either go to one bank for the whole lot or share it between a few (won't win them any favours, i dunno maybe its not enough for a drive by?), and of course all they are going to do is widen the price.
anyone that can do $10k per pip has a private banker to do this sort of thing for them i reckon.
It is called the Futures market......no spread there
What? The futures market isn't made up of purely market makers, so it can't be spread free. Worldspreads does have zero spreads, but i'm guessing there's a maximum trade size. If they weren't happy with the account, they could always close it down, or get the client to reduce their size.
It's not a stupid idea though. Most brokers have a maximum ticket size, of maybe £1000 a point, so you probably couldnt do a £10k ticket because, you could move the market 5 ticks on that in poor liquidity. I'm sure they would just ask you to reduce your size, or go into the cashmarket first.
DashRiprock
Experienced member
- Messages
- 1,650
- Likes
- 482
yeah your right mate, but well look lets forget the hypotheticals; anyone doing that size knows that working an order aint just doing limit or mkt in your size.
yeah your right mate, but well look lets forget the hypotheticals; anyone doing that size knows that working an order aint just doing limit or mkt in your size.
I dont think spreadbetting companies see that size of ticket right, so it's only hypothetical.
DashRiprock
Experienced member
- Messages
- 1,650
- Likes
- 482
what if you set up a Sb firm that just took oposing trades to a cash desk that could hedge it out?
think futuresbetting (prospreads now whatever they are) but with a designated cash desk and forst refusal on forex. does it exist?
think futuresbetting (prospreads now whatever they are) but with a designated cash desk and forst refusal on forex. does it exist?
It's about zero spreads right?
DashRiprock
Experienced member
- Messages
- 1,650
- Likes
- 482
well no I was more thinkin of a spread bet desk that had its own cash desk with interbank liquidity (so heavy hitting clients only) who charged big commissions for turning a $100m cash trade into a $100m spread bet but doing it at cash speed/spreads
Oh right. Yea places do that already, but the spreads wouldn't be zero. I know 4 places that turn an FX trade into a spreadbet.
