Who is talking of fair with SB companies? Scalping with them is not worth doing. I don't know why they do not encourage it but, apart from that, the spread is prohibitive. I have been using an SB company for years but go for more than a few points, otherwise you start overtrading and giving money to the SB company.
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Who is talking of fair with SB companies? Scalping with them is not worth doing. I don't know why they do not encourage it but, apart from that, the spread is prohibitive. I have been using an SB company for years but go for more than a few points, otherwise you start overtrading and giving money to the SB company.
tar
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Yeah i totally agree with u , they should allow it cuz the market will take care of those scalpers , but there is still some few scalpers who is really good at it ...
foredog
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But you taking advantage of a lagging quote is fair?
brendansvest
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Yes it is. Providers on SB and some CFDs are quoting a synthetic market therefore it is their price your are trading with. If you were betting on a horse and one bookmaker offered 2-1 and another offered 3-1 who would you place the bet with?
brendansvest
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Of course they would. What are you basing that on?
Jack Hughes
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Yep, a can of worms all right!
Funnily enough, I actually have some sympathy with SB cos who make short term trading difficult or impossible. If they didn't, the (advertised,theoretical) spread would have to be wider than 1pt on FTSE and DAX, 2pt on Dow/YM, as per Prospreads. If that happened, lots of the SBs would go out of business and there'd be far more competition for proper futures accounts in the UK, so we'd all benefit. ...Well, all apart from CS, CMC, IG, etc!
Funnily enough, I actually have some sympathy with SB cos who make short term trading difficult or impossible. If they didn't, the (advertised,theoretical) spread would have to be wider than 1pt on FTSE and DAX, 2pt on Dow/YM, as per Prospreads. If that happened, lots of the SBs would go out of business and there'd be far more competition for proper futures accounts in the UK, so we'd all benefit. ...Well, all apart from CS, CMC, IG, etc!
brendansvest
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I dont know which bookies you are going to but they must be the smaller ones. If you was betting with Ladbrokes would they refuse the bet? No, because they are big enough to absorb (in their opinion) your tiny bet. Stick to the bigger providers and you wont have this problem.
foredog
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It's all relative.
CS may stop you doing it at £20pp with IG it'll be £200, but there will be a point where all firms will stop it becasue it will begin to dent the P&L
I guess the main reason for this is, not having enough time to offset the position in the real market. If too many traders scalp on a very short term period, there might be an imbalance in the book. Anybody else have an angle on this matter?
tar
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I would say they may ( try ) to stop u .. .
No you might not have this problem with some SB providers, that is, if there is a enough wide spread to cover up for it. A fixed spread is a problem for some SB with narrow spread.
brendansvest
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Unless you are exremely dodgy(inside) or trying to launder money no provider I have dealt with will stop you trading. The dealers we use may sometimes manage a larger order simply because there isnt enough liquidity in the underlying. In respect of short term trader, please let me know if you are having issues and we will welcome you with open arms.
Ha ha, that is the way to go. No really, they will probably put you on referral to a dealer, and in my book that is the same as actually stoping you from trading.
there appears to be too many people on this thread who are not au fait with how the market works-as for the horse racing example-of course bookies pull their prices. chrsit they front run some clients. i've been turned away and accounts closed at numerous sports bookies.,
brendansvest
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No, the dealer refferal is for the size of the trade, not the frequency. If you tried to execute a lumpy order DMA it would still not get done at the price, you would have to work it.
Apparently this is not the way most of the SB companies operate. They still like to hold on to the hard earned clients for future use. This in case their trading policy changes I guess. The most effective way is to let them go through a dealer.
Also, a big income source for the SB is the client funds as it generates a lot of interest.
brendansvest
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And also makes them investable as they hold large amounts of client money.
How long have you been in this business, no offence intended.
