Do spreadbet trades move the SP like buying/slling shares do?

redt

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or is it purely shares that move the share price

as when i called IG Index to place a spreadbet on a FTSE 250 company they had to phone the market maker' to get a price and to put the trade through

so thought if even spread betting companies go through the market maker all spread betting trades must be recorded in the market

i thought the spread betting company made their own trades on their own system, they dictate the prices and the market makers are not involved
 
Hi redt,

In short no. Spreadbettors are bookies. They quote prices on the underlying market only. Unless you have a CFD (contract for difference) account. It's possible they had to check the price for some reason or maybe you were dealing in a volatile period. Who knows. Best thing is to ask them directly, I've not come across this one myself. I trade with IG.

Thinking about it.....you may have called the help desk and they had to check with a dealer (at the same firm).
 
cheers Lee,

forgot to say that it was an AIM stock which is quite illiquid
 
cheers Lee,

forgot to say that it was an AIM stock which is quite illiquid

That makes sense. If its a low volume stock/market then this is very likely. Its also likely that being filled at market you may get different prices due to low volumes depending on your volume of contracts/price per pound
 
ok cheers, thought it would be a bit unfair if spread bets moved the SP and market
 
im a uni student but have traded several times when im not studying
once i graduate i would like to work for a hedge fund, stockbroker or investment bank but more of a analyst rather than trading
 
no! im in hedge end at the mo.

all i know of horndean is the **** courier service that is now yodel!

Hedge end is close. I lived a long time in Rowner - I think pronounced Rahner :LOL:. Done 7 years theres before moving to Portsmouth then to Horndean, more room for your money here but without the fun of clubs, pubs and fast food.
 
What's going on here then??? All sounds very suspicious if you ask me....
 
SB firm will have wanted to check price and pissibly hedge any exposure also
 
SB firm will have wanted to check price and possibly hedge any exposure also
 
ok so in a nutshell SB does not affect the SP movement,

No, you are incorrect.

If you are trying to put a SB on an illiquid stock (or whatever), or your deal size would put the firms net exposure beyond their limits, the SB desk is just going to mirror your actions in the underlying.
 
ok so a SB trade wont impct the market then

the market impacts the SB trade

or am i reading this all wrong?

- when i say SP movement i mean the equity SP not the SB share price
 
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