Best Thread Capital Spreads

[sall]

marlintrdg, no problems is that the real location Nassau Bahams or you just joking

 

[marlintrdg]

marlintrdg, no problems is that the real location Nassau Bahams or you just joking

Stuck here in paradise, siting on the beach with the WiFi laptop watching the girls go by, life is so hard!!

Would love to stay longer in the UK, but theirs NO taxes here.

 

[sall]

Hey I 'd love to get out of the UK and join you there man, I envy trading from the beach with those lovely's walking I could get well used to it, but it could play havoc on my trade plan!

 

[marlintrdg]

Hey I 'd love to get out of the UK and join you there man, I envy trading from the beach with those lovely's walking I could get well used to it, but it could play havoc on my trade plan!

What are you trading and in what time frame GMT?

 

[sall]

I trade mainly us indicies and eminis, from around 15:00 gmt every day

 

[laptop1]

sall

Any spread bet firm will treat a 100 pound a point like a Hot POTATO, they say they take 100 pound a point bets, but that is just talk. I like to see it, through my experience not so.

The last time I traded with a spread bet from was WS, in the end I could even trade 1 pound a point. It stared off with 30 pound then down to 20 to 9 pound then down to 1 pound

They all bloody BUCKET SHOPS

The best why to trade spread betting is to, have 2 account one for longs and one for short, this way they dont know what you are doing.

PS
sall how many point do you try to make on one trade and how many time a day do you trade?

 

[marlintrdg]

I trade mainly us indicies and eminis, from around 15:00 gmt every day

Always comes down to induces and eminis in SB.

I tried securities, but they don't move far enough to break even on a consistent biases, or if they do the spread widening to the being of being ridicules.

For now, I'm sticking with FTSE & Dow, I'm using an EOD system.

 

[marlintrdg]

Laptop1

Saw your problems with CS, can you comment on WS, I was looking at them and their 1 point Dow/FTSE spread.

 

[sall]

sall

Any spread bet firm will treat a 100 pound a point like a Hot POTATO, they say they take 100 pound a point bets, but that is just talk. I like to see it, through my experience not so.

The last time I traded with a spread bet from was WS, in the end I could even trade 1 pound a point. It stared off with 30 pound then down to 20 to 9 pound then down to 1 pound

They all bloody BUCKET SHOPS

The best why to trade spread betting is to, have 2 account one for longs and one for short, this way they dont know what you are doing.

PS
sall how many point do you try to make on one trade and how many time a day do you trade?

laptop1, too right man on accounts and spread trading. On points my target might sound stupid but if I can manage 4 points a day week in week out hey that's around 40% return on my money trading around 40 weeks a year, but issue is having the discipline. I 've found over time if you aim for less you sometimes end up with more.There are days when I end up with 95 points , my stop is always 20.

 

[minx]

Always comes down to induces and eminis in SB.

I tried securities, but they don't move far enough to break even on a consistent biases, or if they do the spread widening to the being of being ridicules.

For now, I'm sticking with FTSE & Dow, I'm using an EOD system.

Commodities are great on SB too. Things like london sugar can really move and coffee is getting livelyat the moment as well.

 

[nigelpm]

Simon,

Do you offer quarterly equity bets on the capital spreads platform like CMC do?

Meaning holding longer term positions doesn't get expensive as cost of carry is pretty much just LIBOR.

Can't find anything about it on the website.

 

[ns1000]

Simon,

Do you offer quarterly equity bets on the capital spreads platform like CMC do?

Meaning holding longer term positions doesn't get expensive as cost of carry is pretty much just LIBOR.

Can't find anything about it on the website.

I'm not sure that the cost of carry is just Libor. If it was that much lower than the mark up on daily bets, there'd be a arb between the two (buy daily, sell future, lock in the interest diff).

 

[nigelpm]

I'm not sure that the cost of carry is just Libor. If it was that much lower than the mark up on daily bets, there'd be a arb between the two (buy daily, sell future, lock in the interest diff).

Well it is ;-)

How could you possibly arb it?

you'd still get charged the daily cost of carry.

 

[ns1000]

Well it is ;-)

How could you possibly arb it?

you'd still get charged the daily cost of carry.

Yes - the cost of carry would be the arb. Say the cost of carry on a daily bet is an implied 7%, and the future is calculated based on libor, of around 5%. You buy the 6-month future and sell the daily, locking in1% (the difference between the two / 6 months). As long as the spread is less than this 1% you'd make the difference without risk.

 

[nigelpm]

Yes - the cost of carry would be the arb. Say the cost of carry on a daily bet is an implied 7%, and the future is calculated based on libor, of around 5%. You buy the 6-month future and sell the daily, locking in1% (the difference between the two / 6 months). As long as the spread is less than this 1% you'd make the difference without risk.

Incorrect.

Simply because selling the daily would only provide LIBOR - 3% (i.e. 2%) and you'd be paying LIBOR (or 5%) for the future.

 

[Jbat001]

Sheesh, arbitrage makes scalping look easy. I would suspect that if there was a loophole, it would be well publicised and much abused by now. Probably no way to make money like this, and the returns, while guaranteed, wouldn't be worth much.

 

[capitalspreads]

nigelpm

yes we do offer quarterlies on all of our equity markets... these are not available in the demo/simulator platform.

the forward value of a quarterly is as you say calculated with the cost of carry (libor) plus any dividend adjustments. Libor is adjusted to reflect higher rates (for buyers) and lower rates (for sellers).

the rolling charges on CS are plus or minus 2% (not 3% which, I believe, is what the other company mentioned charge).

Quarterly prices are wider than rolling (obviously) and there is a point at which rolling becomes more expensive than quarterly trading. This is different for differnet products depending on the sprad charged but in FTSE 100 shares is something like 2/3 weeks (of course for those of you who are short and who like to see the income rolling in every day it can often be more of a psycological thing rather than a value one !)

Simon

 

[capitalspreads]

jbat and nigelpm are quite correct the cost of carry on a rolling bet wipe out the price advantage on the quarterlies, as I have mentioned in the previous comment, in about 2 to 3 weeks

sorry

simon

 

[Jbat001]

jbat and nigelpm are quite correct the cost of carry on a rolling bet wipe out the price advantage on the quarterlies, as I have mentioned in the previous comment, in about 2 to 3 weeks

sorry

simon

So unless you were going £100/pt, it wouldn't be worth the hassle,not to mention that if you were going £100/pt, you wouldn't be interested in an arb opportunity that small....

 

[nigelpm]

nigelpm

yes we do offer quarterlies on all of our equity markets... these are not available in the demo/simulator platform.

the forward value of a quarterly is as you say calculated with the cost of carry (libor) plus any dividend adjustments. Libor is adjusted to reflect higher rates (for buyers) and lower rates (for sellers).

the rolling charges on CS are plus or minus 2% (not 3% which, I believe, is what the other company mentioned charge).

Quarterly prices are wider than rolling (obviously) and there is a point at which rolling becomes more expensive than quarterly trading. This is different for differnet products depending on the sprad charged but in FTSE 100 shares is something like 2/3 weeks (of course for those of you who are short and who like to see the income rolling in every day it can often be more of a psycological thing rather than a value one !)

Simon

Thanks for that Simon.

Do you charge for rollover every quarter on that product or like CMC is it based on the mid price with no rollover cost?

Also what are the spreads like? take RBS as an example and do you only offer that on FTSE350 shares?