Best Thread Capital Spreads

[montmorencyt2w]

Still the original article

Even the slings and arrows do sometimes have a core of customer requirement behind them

Admittedly I do occasionally come across a comment that is frankly either barking mad or just impossible to answer as CS is, after all, the market maker and not the initiator of any trade.

Unfortuntely no matter how you cut it we are, in the end, on the other side of every position. If a client wins or loses the direct transfer of money is between the client and us.

We are getting closer and closer to being merely the exchange where the flow of business means that CS just sits there making the best price it can while taking the 'spread' all day long and merely hedging the excess risk.

Over the last six years i can truly say that 'most' (!?) of my contact on this forum has been worthwhile and i look forward to the next six!

Simon

My position here has varied from naive know-nothing beginner, to hardened losing trader, ueber-cynical, all-SB-firms are bustards, to a much more mellow, these guys are not so bad actually after all (just like Black Swan keeps telling us).

Are you really Simon the CEO, or are you another Simon, the office-boy...?
(Mine's a black Americano, a bit of cold water added...thanks ).



Either way, I am impressed that you bother to come on here, to be insulted by the likes of us. In your position, I probably wouldn't.

Thank you.

 

[montmorencyt2w]

Still the original article

Even the slings and arrows do sometimes have a core of customer requirement behind them

Admittedly I do occasionally come across a comment that is frankly either barking mad

...


I think you have taken the temperature of T2W pretty accurately M'Lud!

 

[montmorencyt2w]

Yes I agree, in the long run SB will be obsolete, financial betting exchanges is the future for the industry.

@GLE101: What is a financial betting exchange?

From a boring UK perspective, it will only be of interest if it is tax-free.

 

[gle101]

@GLE101: What is a financial betting exchange?

From a boring UK perspective, it will only be of interest if it is tax-free.

Simply put, a Financial betting exchange is a p2p network like Betfair, with their members making up the odds and playing against each other. The main problem trading financial instruments (like CFDs) in this manner, is of course, to provide enough liquidity to secure a well functioning market.

 

[tar]

the rules over phone trading are there because markets move very quickly and by the time a dealer has finished quoting ..the price will almost certainly be different. (You try quoting a 1 pip wide FTSE price from our platform trade ticket such that the price is still the same by the end of the sentence as at the beginning and then waiting for even a very fast response from the client).

This delay between quote and response theoretically gives a phone client an advantage over an online one. For this reason we reserve the right to widen spreads over the phone.

This is not some conspiracy theory this is just 'market maker' practice the world over. No doubt some will see this as somehow 'unfair' but I would respectfully request that some of the more regular commentors actually try to think from our point of view for a change. How can we give a fixed price, for anything other than a tiny moment in time, on a fast moving market?

Simon

Simon , can i place all my trades over the phone ? what is your spread on daily dax and daily ftse for phone dealing ? Thanks ...

 

[AC007]

keep the BS alive.

 

[Black Swan]

My position here has varied from naive know-nothing beginner, to hardened losing trader, ueber-cynical, all-SB-firms are bustards, to a much more mellow, these guys are not so bad actually after all (just like Black Swan keeps telling us).
Are you really Simon the CEO, or are you another Simon, the office-boy...?
(Mine's a black Americano, a bit of cold water added...thanks ).



Either way, I am impressed that you bother to come on here, to be insulted by the likes of us. In your position, I probably wouldn't.

Thank you.

Amazing how there is an inverse relationship between increased proficiency and complaints eh? And yes Simon is the real deal...even admits when the clients are mostly winning

 

[tar]

BTW Simon is the CFO not CEO

http://www.londoncapitalgroup.co.uk/boardofdirectors.html

 

[Tenapenny]

BTW Simon is the CFO not CEO

http://www.londoncapitalgroup.co.uk/boardofdirectors.html

All change! http://in.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idINSGE61O08O20100225?sp=true

 

[tar]

All change! http://in.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idINSGE61O08O20100225?sp=true

Thanks

 

[capitalspreads]

tar

in general you can place all trades over the phone we will normally add a pip to all spreads for this.

i have to say though that if a client continually calls for quotes / hardly ever trades / or trades in very small size (i.e multi/multi times a day) we MAY (although we have never actually done so) ask you to use a company more geared towards phone trading

simon

 

[capitalspreads]

in the past traders have asked about opening multiple trade tickets all at once.

this is now part of our main platform.

If you 'Right Click' on the 'tear off' icon on the markets page that you are looking at and then click on the choice ' open as trade tickets' you will open a page showing every market on that 'market page' as a pairs trade ticket option.

simon

 

[gle101]

in the past traders have asked about opening multiple trade tickets all at once.

this is now part of our main platform.

If you 'Right Click' on the 'tear off' icon on the markets page that you are looking at and then click on the choice ' open as trade tickets' you will open a page showing every market on that 'market page' as a pairs trade ticket option.

simon

Simon, great that you finally converted to the new platform, really nice features. But you really have to look over your spreads on the Dow and Nasdaq, this in order to keep up with you competitors.

Clients are never satisfied, are they?

 

[capitalspreads]

gle101

mmm...yes

a bit of a price war appears to have broken out

we have to assume that the minnows (CS, WS et al) have finally started to impact the major players (it only took 5 years).

no doubt we will have to prepare our response .. (given that one of the big boys was not profitable at 4 point spread on the dow one wonders how they are doing at 1!)..

i feel that this is more of a shutting the door in the face of any new entrants as SB and CFD providers can now only be profitable with significant trade flow... which takes many years to build. Good for clients ....but will make any potential exchange offerings very difficult to gain traction (i understand that a couple of bigger players are close to launching exchange based products)

I fear that in a few years there will only be four or five platforms left

Simon

 

[tar]

gle101

mmm...yes

a bit of a price war appears to have broken out

we have to assume that the minnows (CS, WS et al) have finally started to impact the major players (it only took 5 years).

no doubt we will have to prepare our response .. (given that one of the big boys was not profitable at 4 point spread on the dow one wonders how they are doing at 1!)..

i feel that this is more of a shutting the door in the face of any new entrants as SB and CFD providers can now only be profitable with significant trade flow... which takes many years to build. Good for clients ....but will make any potential exchange offerings very difficult to gain traction (i understand that a couple of bigger players are close to launching exchange based products)

I fear that in a few years there will only be four or five platforms left

Simon

maybe a spread cut on the SP500 , it is a very liquid contract and u can hedge very easily ...

 

[Jack Hughes]

,,,given that one of the big boys was not profitable at 4 point spread on the dow one wonders how they are doing at 1!

Simon

Possibly by taking a large chunk of business away from the competition? It can only be a matter of time before we get zero spreads (and most of us will still lose money).

 

[tim3]

Possibly by taking a large chunk of business away from the competition? It can only be a matter of time before we get zero spreads (and most of us will still lose money).

I agree have often thought that because so many lose money that they could offer zero spread and still make money!!

I guess the problem would be stopping the minority who could exploit this from making a killing.

 

[gle101]

gle101

mmm...yes

a bit of a price war appears to have broken out

we have to assume that the minnows (CS, WS et al) have finally started to impact the major players (it only took 5 years).

no doubt we will have to prepare our response .. (given that one of the big boys was not profitable at 4 point spread on the dow one wonders how they are doing at 1!)..

i feel that this is more of a shutting the door in the face of any new entrants as SB and CFD providers can now only be profitable with significant trade flow... which takes many years to build. Good for clients ....but will make any potential exchange offerings very difficult to gain traction (i understand that a couple of bigger players are close to launching exchange based products)

I fear that in a few years there will only be four or five platforms left

Simon

Yes the big boys are starting to act, enough is enough I guess. We as clients can look forward to an interesting future for SB. Spread is narrowing, platforms better, good client oriented service and fair play (by accepting the MiFID fully). Also new ideas on offering exchange products and platform solutions will emerge. Yes, quite a few players will probably vanish or merge in the years to come, hopefully not too many, as this could affect the service and price level again.

 

[gle101]

maybe a spread cut on the SP500 , it is a very liquid contract and u can hedge very easily ...

Yes why not, not much have happened to this liquid instrument over the years. Why not narrowing the spread on Nasdaq, most of the SB hang on to 2 spread, not as liquid but room to offer better spread.

 

[montmorencyt2w]

Price war? Spreads may have come down, but at least some SB firms have put overnight rolling charges up.

For a quick comparison, what are the charges at Capital Spreads for overnight short GBP/USD, EUR/USD and EUR/CHF, for example, e.g. for £1/pip staked?