Shafted

adz · Apr 11, 2008

Hey all
I think so, but i would like to hear what you think..

I was short on a stock from the open which had gradually been falling till around 3pm and the quote (as usual) was a bit behind the chart price time wise. The trend on the chart then reversed and cought up with the delayed quote at which point the chart and the quote started moving up together like the last 5 or 10 minutes of price action didn't exist.
I was in profit and the quote should have fallen another 6 points including the spread according to the chart , but it didnt, it Just stayed delayed intill the reversal price cought up with it.
Basicaly the the quote decided not to fall like it was soppossed to according to the charts and decided to catch up with the trend reversal so i exited at a loss when i should have been in profit..

what do you say ?

thanks
Adam

0007 · Apr 11, 2008

adz said:
Hey all
I think so, but i would like to hear what you think..

I was short on a stock from the open which had gradually been falling till around 3pm and the quote (as usual) was a bit behind the chart price time wise. The trend on the chart then reversed and cought up with the delayed quote at which point the chart and the quote started moving up together like the last 5 or 10 minutes of price action didn't exist.
I was in profit and the quote should have fallen another 6 points including the spread according to the chart , but it didnt, it Just stayed delayed intill the reversal price cought up with it.
Basicaly the the quote decided not to fall like it was soppossed to according to the charts and decided to catch up with the trend reversal so i exited at a loss when i should have been in profit..

what do you say ?

thanks
Adam

1. Who's charts ?
2. The quote is the quote and you take it or leave it (SB COs don't necessarily reflect the underlying instrument).

wasp · Apr 11, 2008

0007 said:
1. Who's charts ?
2. The quote is the quote and you take it or leave it (SB COs don't necessarily reflect the underlying instrument).

SB's don't always reflect any instrument!

0007 · Apr 11, 2008

wasp said:
SB's don't always reflect any instrument!

And according to some reports, you're lucky if you get what's quoted anyway! (yeah, life's a bitch)

adz · Apr 11, 2008

0007 said:
1. Who's charts ?
2. The quote is the quote and you take it or leave it (SB COs don't necessarily reflect the underlying instrument).

It was city index quotes and charts..you would think thier quotes would at least relate to their charts wouldn't you...I for one have had enough of them and will not use them again

0007 · Apr 11, 2008

adz said:
It was city index quotes and charts..you would think thier quotes would at least relate to their charts wouldn't you...I for one have had enough of them and will not use them again

Read the SB threads for all the horror stories. So long as you understand: that like car salesmen, IFAs, estate agents and their ilk, that their whole purpose in life is to empty your wallet asap, then you can do OK.

Vorbis · Apr 12, 2008

and the quote (as usual) was a bit behind the chart price time wise.

Are you sure this was'nt the other way around ?

If the chart and quote were both supplied by CI and the quote lagged the chart would'nt it be absurdly easy to make money ?

tomorton · Apr 12, 2008

hi adz - its a swine when this happens, but its obviously going to happen, just take a look at the SB chartys and underlying instrument charts - the SB's will be more volatile with wider ranges so at some point their quotes must always cross the underlying.

When you spreadbet, you're working head to head with the SB firm - you each but and sell only from each other. If you were them and you thought something was going to go up in price, costing you more when you bought it back, would you offer it to your customers at a discount?

adz · Apr 13, 2008

I was a little angry after what happend to me but its to be expected with SBing i guess. I have since been back to their site to read up on any information available and was suprised to see that they actually (in clear text) describe how they arrive at thier quotes. They say they simply add thier advertised spread to the underlying price. In all fairness to them, they are the first SB firm that i have come across that specificaly describe how they arrive at their quotes. I for the moment am inclined to belive them otherwise it would be a case of false advertising at the very least.

Anyway..

Adam

Mathemagician · Apr 13, 2008

When the counterparty to your trade also sets the price, these things will happen. It's basically like accepting when someone says, "betcha $5 you can't guess how many fingers I'm holding up behind my back?"

If you really see this happening over and over, then arb them until they cut you off.

jj

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