eagletower
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refused at a current price of point blank "not closing this position"?
eagletower
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did they give him an alternative price? I can'#t believe they would do that, I suffered from requotes with them but never had them refuse to close a position, then again i never have had £2000 a point!
In deed Eagletower, You see the postion was built up through limmit orders very quickly, then went over to telephone dealing as the online platform posted message to phone dealer. Then when on the phone even at lower amounts £500 per point was still refused to close on the basis there was not enough volume. This was in mid afternoon trading too where I was trading the real market and see that 140 dax contracts is adiquate volume to liquidate. Suddenly the market droped and all the profit was wiped out.
My thoughs are something was not right, and wondered if this has ever happened before ?
My thoughs are something was not right, and wondered if this has ever happened before ?
Lee Shepherd
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TomTom,
Heres the thing, more of a problem really. If they refuse to close the position.....what if the market continues to rise in his favour. The bookies dont know what the market will do next just like a trader doesn't. I agree with £10kloser here. Sounds like another made up story that probably started off with £1pp and turned into 2000 pound per point.
Also, if he's trading at 2k a point, why not go direct access....just a thought. I mean this guy you talk about MUST BE a millionaire. On most margin requirements for an index is roughly 150 per 1 point bet, so 2000 would be margin of 300,000 plus whats needed to maintain the position until close. We also know that people shouldn't play with money they can't afford to lose so I assume here he must be a millionaire several times over. That or stupid.
Heres the thing, more of a problem really. If they refuse to close the position.....what if the market continues to rise in his favour. The bookies dont know what the market will do next just like a trader doesn't. I agree with £10kloser here. Sounds like another made up story that probably started off with £1pp and turned into 2000 pound per point.
Also, if he's trading at 2k a point, why not go direct access....just a thought. I mean this guy you talk about MUST BE a millionaire. On most margin requirements for an index is roughly 150 per 1 point bet, so 2000 would be margin of 300,000 plus whats needed to maintain the position until close. We also know that people shouldn't play with money they can't afford to lose so I assume here he must be a millionaire several times over. That or stupid.
eagletower
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i've never met someone who has done £2000 a point, it's a lot of money!
gamma
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I remember being given a walk around CMC's dealing room a while back and asking the chap showing me around, how big do the bets get? he said it was very rare to gets bets at 500 pounds a point.
He actually said " Anyone betting anything abve 50 pounds a point would be sensible enough to go
D.A"
He actually said " Anyone betting anything abve 50 pounds a point would be sensible enough to go
D.A"
Well, it need not be. It all depends on the leverage of the instrument traded. I can very well imagine that an SB can refuse to execute an order if the liquidity is not sufficient. In that case one has to have other SB to hedge against or close the position partially in steps.
All SB's have sizes that they're good in on indices (I assume that's what we're talking about here), and £2000 is simply more than CMC want to make a price in. As you say, your friend built the position up with multiple smaller orders. They have limits like this to protect themselves in case they get fair value wrong and get wiped out by arbitragers.
Yes, if it is indices we are talking about (I assume we are not, ha ha!). The margin required would be substantial.
£2000 a point is £80,000 margin requirement well it was then.
having limit orders placed when the market spikes , and then continues it can be archived in a small amount of time if the trader is aggressive.
On the flip side the risk management policy would need to go out of the window.
having limit orders placed when the market spikes , and then continues it can be archived in a small amount of time if the trader is aggressive.
On the flip side the risk management policy would need to go out of the window.
Yes you are right on that assumption.On the flip side the risk management policy would need to go out of the window.
price777999
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what is D.A ?
price777999
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oh ....direct access trading.
