why SpreadBet??? its not professional

B

bullcar

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Read a lot of views now about which is best way to spread bet, which platform, etc.

What I do not understand, is why on earth would a serious trader use this platform (other than as an occassional extra tool).

The only way to trade that I can see where you are on an even playing field is to get yourself professionally set up with direct market access to the Futures Markets.

Am I missing something?
 
bullcar said:
Read a lot of views now about which is best way to spread bet, which platform, etc.

What I do not understand, is why on earth would a serious trader use this platform (other than as an occassional extra tool).

The only way to trade that I can see where you are on an even playing field is to get yourself professionally set up with direct market access to the Futures Markets.

Am I missing something?
Click to expand...

Small stakes = small losses, I think its a good learning experiance. If I'd placed just half my losing trades on a "real" market I'd be skint.

Flubba
 
Im not recommending spreadbetting or dismissing it but i think you will find the fact that winnings are tax free for UK residents and you can command the equivilent of (approximately) a 2 mini lot position with an account balance of £40 on eurodollar is what attracts a lot of people. Most professional intraday traders trade direct access as you say but spreadbetting is very appealing to people just starting out, plus i know a few people that spreadbet for a living.

Tom
 
Hi T, Hi F
So basically, its a tool for non - professionals.
Fair enough.
If you want to compete and basically improve your situation then I do seriously sugest you get in touch with some pro houses.
At the moment spreadbetters are pumping in money that the professionals are effectively taking back for themselves.
cheers
bullcar
 
bullcar said:
At the moment spreadbetters are pumping in money that the professionals are effectively taking back for themselves.
Click to expand...

not strictly true. Spreadbetters only "pump" money into their spreadbet firm, since they arent trading on the open markets and do not interact with other traders.

SB firms generally dont hedge so all losing trades go straight into the SB firms pockets.
 
Arbitrageur said:
not strictly true. Spreadbetters only "pump" money into their spreadbet firm, since they arent trading on the open markets and do not interact with other traders.

SB firms generally dont hedge so all losing trades go straight into the SB firms pockets.
Click to expand...
Come on A,
you know they hedge. the only time they generally dont hedge is when the spread is so wide that theres no point - in that case , back to my original point anyway
 
no they dont, maybe the smaller ones do but I did some work with IG Index supplying some infrastructure a few years back and those guys told me they very rarely hedged their exposure - 90% of traders lose money, so why would they want to "hedge" their profits?
 
so what do think these whole new platforms are based upon? blimey, they dont even need brokers/traders, they can hedge straight out and instantly lock in their profits - risk free!!
they dont need to hedge everything , ofcourse, but whats the trend?
 
I just can't resist...

So there I was, trading away, and this guy comes up to me and says "Oi! No professionals!"
I said "I'm NOT a professional".
He says "Well, you should be. If you carry on the way you are, you'll be the best in the country"
So I said "No thanks. I'm making sh*t loads from spreadbetting...."

:LOL: :LOL:

Apologies... but I just had to do it.
 
Some SB contracts are value for money when trading through the SB as opposed to trading through, say, direct access and pay a commission, fee, etc.
 
Col_Stiffler said:
I just can't resist...

So there I was, trading away, and this guy comes up to me and says "Oi! No professionals!"
I said "I'm NOT a professional".
He says "Well, you should be. If you carry on the way you are, you'll be the best in the country"
So I said "No thanks. I'm making sh*t loads from spreadbetting...."

:LOL: :LOL:
Apologies... but I just had to do it.
Click to expand...


You know Bruce Lee's not really dead dont you?.....
 
Anonymous said:
Some SB contracts are value for money when trading through the SB as opposed to trading through, say, direct access and pay a commission, fee, etc.
Click to expand...
Hi A.
thats sounds surprising. Please can u fill me in - maybe give me a couple of examples.
thanks for your input
BB
 
For example, the difference between IB and a SB firm.

IB offers UK stock, SB offers UK stock CFDs. IB charges a commission but the spread is about the same on both IB and SB, eg. Vodafone.

SB offers UK stock CFD's and stock futures but doesn't charge commission. The stock futures can be used as alternative to option, because of the expiry, although the stock spot and the stock futures on SB cannot give good arbitrage because of the wide spread.
 
Spread betting is perfectly suitable for professional swing or long term trading.

For day trading its only viable if you have an edge over the SB firm (ie can arb prices), otherwise
the spread is just too large.

Currency daytrading in theory may be possible via spreadbetting, however the SBs can requote prices or delay fills when they feel like and can run your stops etc.
 
Day trading forex

donaldduke said:
Spread betting is perfectly suitable for professional swing or long term trading.

For day trading its only viable if you have an edge over the SB firm (ie can arb prices), otherwise
the spread is just too large.

Currency daytrading in theory may be possible via spreadbetting, however the SBs can requote prices or delay fills when they feel like and can run your stops etc.
Click to expand...

I seem to recall one T2W member who happily uses Oanda to day trade forex - wannagetstacked ?
 
donaldduke said:
Spread betting is perfectly suitable for professional swing or long term trading.

For day trading its only viable if you have an edge over the SB firm (ie can arb prices), otherwise
the spread is just too large.

Currency daytrading in theory may be possible via spreadbetting, however the SBs can requote prices or delay fills when they feel like and can run your stops etc.
Click to expand...
and as if by magic....
... they didn't even "re-quote" it said "call the dealing desk."

Ok so it was around the FOMC policy announcement and I know News will usually bring out the worst in retail/bucket brokers but...

Now I'm not one to bleat on especially when the market is moving obviously they may need to requote me but when I tried to short cable 1.8039 ~19:15 (against the prevailing ticks i may add) I was "order cancelled" and told to call the dealing desk. I couldn't even chase it after that and that , was that.
So what if they had a book full of shorts i don't care, sting me to trade but let me trade.

What if I'd been long and wanted out?

My current "broker" Diddled4Fills has just upset me.
I know these things can happen(even in FX?) but I'm not impressed, I'm trying to learn with a small account with but I'm begining to think that a broker with crappy charts and rhymes with Go-Granda maybe the way forward.

Did anyone "experience" any problems around then or is it just me? how did direct access fair?, other retail traders?
 
SvenFoster said:
and as if by magic....
... they didn't even "re-quote" it said "call the dealing desk."

Did anyone "experience" any problems around then or is it just me? how did direct access fair?, other retail traders?
Click to expand...

I got filled okay but as I put my stop to +20 after the first part of the move (a good 20 pips away from price at time) the market moved back towards the stop and although three charts I've looked at all stopped short by about 3/4 pips my SB company managed to hit it! The trade was due to be left open to close and I would currently have about an extra 20 pips right now but I gues thats SB'ing for you!
 
Hi S & J
So why bother with that gents?
This is not an i told you so, but, not only are you having trouble getting out of a postion you are caught off side in, but you never get the chance to get into the trade at the moment of impact.
The professionals have been in and out already!
Direct exchange access wins whichever way you look at it.
I suggest you get into trading futures - if you dont have the funds - find someone who does and get them to back you.
sincerely
BB
 
Why bother?

Because a trader handles risks everyday, that's what a trader does. One of the ways to handle risk is: diversify, including don't put all your baskets on one egg. SBs are a good way to diversify the funds, for one thing they are regulated and most (maybe not all) don't charge account maintenance fees.

If you know a platform is unsuitable for speedy trades don't use it for fast trades. They are suitable for slow, directional, predictable trades, those which you can use the lowest risk possible and hold your position overnight for days or weeks without having to worry about margin call.
 
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