scalping??

hi guys im currently spread betting with ig index.i usually only keep a position open for maybe 10 to 20 munites.do you think im classed as a scalper or is that an acceptable time to hold on to a trade?i dont want them to stop my account so i would be greatful if you could clarify this for me.

thanks rob

Hi rob - I'm not a scalper but I do hold intra-day trades as well as the 1-2 week swing stuff. My understanding is that any account might be closed if it is successful for the SB to stomach, but that scalping successfully using SB is virtually impossible. Have you absolutely proved to yourself in testing that scalping will work?

Its not scalping in my books especially in the current market conditions. We didnt have this much volatility in the past. Eg. the 500 point swings you get on the dow on a daily basis these days.

So setups are playing out alot quicker. You can get 100 point moves in 2 mins. If you trade these then in my books thats scalping. But holding out for 10-20 mins on a setup is just standard day trading. And thats what I do.

In less volatile markets you'd be holding slightly longer for these type of setups to play out and hence scalping in less volatile times would also result in holding a bit longer.

And the spread betters wont ban you if you trade this way. They have enough time to balance their books with this type of trading. You may get problems in closing out positions on a spike as the SB''s wont be able to hedge out on this kinda stuff. But if you want to be able get instant fills and have the ability to close on possible runaway spikes, then go to futuresbetting. Ive just recently started using them, and you get instant fills, as your position is hedged directly into the underlying futures market.

rob25 said:

hi guys im currently spread betting with ig index.i usually only keep a position open for maybe 10 to 20 munites.do you think im classed as a scalper or is that an acceptable time to hold on to a trade?i dont want them to stop my account so i would be greatful if you could clarify this for me.

thanks rob

Click to expand...

Don't worry I think they'll LOVE you as a client. Basically overtime the spread will eat your account alive. Sort of like going to a casino everyday to play Craps, impossible to overcome the house edge.

anley said:

Don't worry I think they'll LOVE you as a client. Basically overtime the spread will eat your account alive. Sort of like going to a casino everyday to play Craps, impossible to overcome the house edge.

Click to expand...

Not so.
Walk away when in front. You beat them.

How many people can do that though?

Trader element v 'Just one more go' .

rob25 said:

hi guys im currently spread betting with ig index.i usually only keep a position open for maybe 10 to 20 munites.do you think im classed as a scalper or is that an acceptable time to hold on to a trade?i dont want them to stop my account so i would be greatful if you could clarify this for me.

thanks rob

Click to expand...

You are definately NOT a scalper

Anyway, if we are talking 100 point moves in these volatile times, as a previous poster mentioned, then the spread should not kill you. With some of the currencies on CS for rolling daylies, the spread is only 2 pips. For S&L on US Crude futures, the spread is only 5 pips.


Futuresbetting - everyone is praising them - are there any disadvantages with them?
Thanks,
M.

montmorencyt2w said:

Anyway, if we are talking 100 point moves in these volatile times, as a previous poster mentioned, then the spread should not kill you. With some of the currencies on CS for rolling daylies, the spread is only 2 pips. For S&L on US Crude futures, the spread is only 5 pips.


Futuresbetting - everyone is praising them - are there any disadvantages with them?
Thanks,
M.

Click to expand...

No charting - So you have to pay for your own.
Ive found the margin position window doesnt update in realtime all the time.

montmorencyt2w said:

Anyway, if we are talking 100 point moves in these volatile times, as a previous poster mentioned, then the spread should not kill you. With some of the currencies on CS for rolling daylies, the spread is only 2 pips. For S&L on US Crude futures, the spread is only 5 pips.


Futuresbetting - everyone is praising them - are there any disadvantages with them?
Thanks,
M.

Click to expand...

Compared to trading the futures they are quite expensive, otherwise if you want to trade tax free they are a good choice. That is if can cope with a high account deposit and stakes.

No it's not scalping.

You need to worry about actually making money before they'll even be interested in looking at your account.

gle101 said:

Compared to trading the futures they are quite expensive, otherwise if you want to trade tax free they are a good choice. That is if can cope with a high account deposit and stakes.

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So, just to be clear: they are a Spread-Betting firm, not a direct broker or whatever?

What sort of account deposit are we talking about here?


Hoggums: Good point about actually making money! If only I could get to the point where I was starting to have the SB head-honchos actually worried! :cheesy:

Imaginary headline: "Darling reduces VAT to 1% in desperate bid to save the economy, his job, and the next election. Meanwhile in other breaking news:
Spread Bet Giant IG-Index announces that it was nearly brought to its knees when its customer known only as "Montmorency" won yet another spectacular trade...."

Ha!

(When I told them I was taking up stand-up-comedy, they only laughed
....they're not laughing now!



Thanks,
M.

montmorencyt2w said:

So, just to be clear: they are a Spread-Betting firm, not a direct broker or whatever?

What sort of account deposit are we talking about here?


Hoggums: Good point about actually making money! If only I could get to the point where I was starting to have the SB head-honchos actually worried! :cheesy:

Imaginary headline: "Darling reduces VAT to 1% in desperate bid to save the economy, his job, and the next election. Meanwhile in other breaking news:
Spread Bet Giant IG-Index announces that it was nearly brought to its knees when its customer known only as "Montmorency" won yet another spectacular trade...."

Ha!

(When I told them I was taking up stand-up-comedy, they only laughed
....they're not laughing now!



Thanks,
M.

Click to expand...

I think the account deposit is around £3000. You are actually trading the futures (variable spread) as I understand it, with a wrapper (commission) around the future price making up the spread. So they are actually not a Market Maker. Quite clever I must admit. That they have been able to get it approved and categorized as spread betting by the FSA and the tax officials, is quite an achievement. As for myself I do not trade with FB. If I have misunderstood the business model please feel free to correct me.