Spread Betting sites?

[montmorencyt2w]

It is aimed more for the intra day trader, if clients wish to run positions o/n or for long periods (which we don't charge for ) then they should be funding more money

I hope you warn people properly not to accidentally leave a trade open overnight, unless they have plenty of room in the account.

The fast moving markets can happen this is a risk to everybody, that's why margins are there.

Which by the sound of it are totally inadequate compared to the actual risk.

If a cable position suddenly goes offside by 400 points say and the stop doesn't kick in, if this is $10/point, that's $4000, say £2,600 - a lot more than £1,000 anyway.

OK, doesn't happen very often (although there were big moves in the dollar, Euro, CHF and Wall Street today for example, maybe not that much), but it's a risk.

Its a big boys game

To which you are tempting the little boys by allowing over-leveraged £1,000 accounts. I had previously assumed that your account minimum size was something like £10,000 (which many people on T2W say is the minimum anyone should realistically trade with anyway). I was very surprised to hear that it was £1,000.

 

[montmorencyt2w]

I have had an account with PS for a few years and mainly trade intraday with a small balance and know that rules that I can only day trade. On the odd occasion i have wanted to carry a position overnight I have had raid the piggy bank to cover the extra margin. But at least I get the opportunity to get fair prices. Also how can they let you have a tight stop on when markets are closed? hence they need extra margin to cover the worst case. I find it as clear as daylight.

I think you have missed my point entirely.

I am not objecting to the large margin overnight, but to the small margin in the day!

Probably ok for seasoned scalpers who know the risks but it might encourage newbies to underestimate the risks involved. They should be forced to put down an amount of money that would come close to covering what they might lose.

Actually it would nowhere near cover it, as it's still leveraged something like 50:1 I believe.

I'm not talking about the amount of money you would lose if your stoploss got hit, but if the price overshot your stoploss by a long way in a megamove (e.g. if they are unable to close your trade in the underlying market, which seems quite possible if something big is going on, or for whatever reason. Was it made clear to you that you could lose more than just the money in your account?

Don't get me wrong; I am sure they are better than the average SB company. I am just a bit surprised at them for permitting accounts that seem to be too small to trade safely

 

[ProSpreads]

I think you have missed my point entirely.

I am not objecting to the large margin overnight, but to the small margin in the day!

Probably ok for seasoned scalpers who know the risks but it might encourage newbies to underestimate the risks involved. They should be forced to put down an amount of money that would come close to covering what they might lose.

Actually it would nowhere near cover it, as it's still leveraged something like 50:1 I believe.

I'm not talking about the amount of money you would lose if your stoploss got hit, but if the price overshot your stoploss by a long way in a megamove (e.g. if they are unable to close your trade in the underlying market, which seems quite possible if something big is going on, or for whatever reason. Was it made clear to you that you could lose more than just the money in your account?

Don't get me wrong; I am sure they are better than the average SB company. I am just a bit surprised at them for permitting accounts that seem to be too small to trade safely

Whilst completing and online application, we do state that clients have to be professional and have sufficient knowledge of the markets, the lower deposit of £1000 is aimed more at the scalpers, as we have fixed spreads.
We run a tight risk system here, the risk is ours.

 

[A Dashing Blade]

. . .
I'm not talking about the amount of money you would lose if your stoploss got hit, but if the price overshot your stoploss by a long way in a megamove (e.g. if they are unable to close your trade in the underlying market, which seems quite possible if something big is going on, or for whatever reason.

You are trading dma. The stop is physically in the market. Thus the risk of slippage is the same as that for any stop.

. . . Was it made clear to you that you could lose more than just the money in your account?

What, you mean that "You may lose more than you put in" risk warning that is plastered accross their web site and on their clinet agreement forms?

Bottom line, you caan take a horse to water but you can't make a donkey drink. There will always be stupid customers, same in any industry.

 

[montmorencyt2w]

You are trading dma. The stop is physically in the market. Thus the risk of slippage is the same as that for any stop.

So would you care to quantify that risk for a typical trade that someone with a £1,000 account might take on a typical instrument, say, cable?

What, you mean that "You may lose more than you put in" risk warning that is plastered across their web site

If you call that "plastered across" - I wouldn't.

ProSpreads | Professional Spread Betting

It's in small print at the bottom. I don't know about the subsequent pages.

and on their clinet agreement forms?

If you say so. I have never applied because I know I can't yet afford to bet £10 or $10 per pip.

Bottom line, you can take a horse to water but you can't make a donkey drink. There will always be stupid customers, same in any industry.

Bottom line is, if they made the minimum account size at least £10,000, it would at least keep out some of the stupid customers. It seems to me that they are quite happy to attract some of them. I wonder why? We are told that their model (and that of a similar competitor) is superior to the usual bucket shop SB firms because on the face of it, they have no reason to want their customers to lose. At first I accepted this at face value, but now I'm not so sure.

So, you'd give them your 100% recommendation would you?

 

[Correnna]

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