Trading Desks ?

[ukdaytrader]

By spreads I mean at the moment my provider is quoting 5 points difference on bid - offer on some equities - not sure if this is the market spread or whether they are adding a little onto the market spread ?

Index options are 2 points (1 point either way from mid) difference so as soon as you buy say 5 contracts at £10 per point your down £100 as soon as the button is pressed ! Again when you then close the contract you lose again.

If that spread was 1 point (0.5 points either way) then I would only be down £50 when the contract opens as opposed to £100.

 

[fifty2aces]

By spreads I mean at the moment my provider is quoting 5 points difference on bid - offer on some equities - not sure if this is the market spread or whether they are adding a little onto the market spread ?

Index options are 2 points (1 point either way from mid) difference so as soon as you buy say 5 contracts at £10 per point your down £100 as soon as the button is pressed ! Again when you then close the contract you lose again.

If that spread was 1 point (0.5 points either way) then I would only be down £50 when the contract opens as opposed to £100.

From the sound of things, you're spreadbetting, right? If you got a desk in an arcade you'd be trading in the real market - there would be commissions, but you'd get the tightest spreads available at the time, and it would almost certainly end up being cheaper.

 

[ukdaytrader]

Im using CFD's not spreadbets but cant believe that the spreads can be so wide ? Is this standard 2 points on an index and on some smaller equities 5pence ? Granted on some of the high volume stocks the spread is 0.1 pence which is good but on some of them 5p which on a 40 pence stock is proportionally too high.

The main area where I have a problem is the cash index and the lower priced stocks.

I've only used one broker, but if feels expensive on some of the instruments

 

[ukdaytrader]

Commissions

Attached prime example of commission eating into the profit - 2 lots of FTSE opened at 10 a point - £40.00 then the smaller £2 contract also losing £4 each time per contract.

The USD trades are even worse - nice gross profit then turn into a loss after commission.

I could trade larger sizes but again trying to manage the risk a little

And this is on CFD's, the spread betters must have an impossible task to hand.

 

[Technically Fundamental]

Attached prime example of commission eating into the profit - 2 lots of FTSE opened at 10 a point - £40.00 then the smaller £2 contract also losing £4 each time per contract.

The USD trades are even worse - nice gross profit then turn into a loss after commission.

I could trade larger sizes but again trying to manage the risk a little

And this is on CFD's, the spread betters must have an impossible task to hand.

why would you even trade equities if you're trading in such small size lol. commissions are rape.