any successful spread betters here?

Well said The Bramble,
They don't really have to do much except wait for some of us to get careless/impatient/stupid and most of us fall into at least one of those traps now and again.
A few, of course, never escape from them.
By spread betting I believe I'm following one of the Commandments, i.e., "Do others before they do you". :devilish:
 
Another way they get you is stops

Have stops by all means, but 'don't' let them know about it!!!!!
 
Guys.. Casino's want medium sized punters to win. I know- as I've just come back from a Las Vegas, where a mate who was with us, had a 1,700 sq foot suite, all meals, all shows, all drinks "comp'd" to him ( almost $8,000 worth free) why? because 1) he's a big punter, and 2) last time out there, he won over $100,000 - the casino's love medium sized winners as 1) they all work by the laws of statistics which means in the long run they always win 2) the winners tend to come back ( and normally lose - yes my pal gave back $35,000) 3) they can promote the winners " that guy over there? who gets the seats at the front of the sell out shows? has the air conditioned cabana by the pool? oh yes, he's one of our winners"

It's the same with SB'ing firms- they know they may have a few consistent winners, but in the long run, even if those handful of winners keep winning, the vast majority will lose. And what better publicity than a big winner who is happy for publicity?

The SB'ing firm will almost certainly hedge themselves when the big punters , consistently good punters trade - like I said.. they want to see that business so they can go with the winning punters - last thing they want isMR winning-punter going to a rival firm.

Stops? sorry fella's this one falls under "conspiracy theories & other people I'd like to blame" if you leave a clear and concise instruction for a stop ( i.e market price, NOT quoted price) there is no way on earth they are going to move a market just to take your stops out. c'mon, think about it.....
 
CityTrader said:
Stops? sorry fella's this one falls under "conspiracy theories & other people I'd like to blame" if you leave a clear and concise instruction for a stop ( i.e market price, NOT quoted price) there is no way on earth they are going to move a market just to take your stops out. c'mon, think about it.....
Click to expand...
Agree with everything you said CT - except this.

When I used to SB, one of the companies used to consistently spike their price when there was no parallel action in the underlying. It does happen - then don't have to move the market - just their prices.
 
excellent, thanks for this, it is what the quiet voice of reason was whispering in my ear but I am much the better for having it confirmed by more experienced traders.

Many thanks

MT

CityTrader said:
Mystical Trader - start looking for conspiracies, and you'll go insane. They do not collude to create ways to part you from your money. " some" may "read" you a little ( it's what market makers do - and SB firms are effectively Market makers) I had lunch last week, with one of the larger SB'ing firms, and I asked him about this, and he said they just dont have the time or the inclination to read their punters. If they have a "hot punter" last thing they want is for him to go elsewhere- they'd rather he dealt with them, and then they can go with his trade.
I know the other SB'ing firm I use also does NOT read their punters... BUT as I have said before,remember - no such thing as a free lunch...

All told I think as Donlad Duke says above, the SB firms want you as an individual to be profitable- just like a casino....
Click to expand...
 
I know I am probably being a dunce, but how would they do this? I watch the prices in the SB screen, and track with real time prices from a USA data provider and there dont seem to be many differences (I have seen some time variations but that is normally only a few seconds lagging behind the real time).

Perhaps only because I am a new and a little guy but I cant imagine it would be worth losing their license to trade from the FSA by manipulating things just to stop me out or fleece me? surely?

Mind you... I have seen Finspreads use 'telephone trading only' more than they should do (try to get a forex cash position on their web platform!), and they did delay opening positions sometimes by as much as a minute, during which the price did rise/fall by quite a lot. I saw this on my last day with them when their response delayed me opening a short which then dropped 20 pips in the time they took to respond to the trade... The major reason I wont use them now.

MT



Racer said:
Another way they get you is stops

Have stops by all means, but 'don't' let them know about it!!!!!
Click to expand...
 
CityTrader, I would disagree strongly re the stops... I know cases where they 'did' spike the market briefly and oh surprise surprise, that was just to the stop level (not mine cos I never put them on with SB) that were in place, and then it bounced and went the other direction.
 
This is always going to be a grey area !

I too have experienced this, but I can never in my mind be certain whether my stop was too close or the market was too volatile.

I now use a far away "absolute" stop, and then have "mental" trading stops.
 
Just checked out FXCM. They're spreads on spot rates are alot higher than D4F.

GBP/USD and EUR/USD spread on D4F is 3 and 3 whereas on FXCM its 5 nd 4.

I know im a relative newbie comapared to others here, and i am still searching for the right platform to trade on but surely D4F is better? Or am i missing something here?
 
Whats the real difference then between SB and direct access? Cant others employ the same 'tactics' (whether true or not) as SB's?
 
FXCM guarentee fills below certain amounts, Deal4Free might introduce some slippage to you above certain amounts...

FXCM allow more comprehensive order types, but Deal4Free SB is Tax free.

You pays yer money yer make your choice.

JonnyT
 
TheBramble said:
Agree with everything you said CT - except this.

When I used to SB, one of the companies used to consistently spike their price when there was no parallel action in the underlying. It does happen - then don't have to move the market - just their prices.
Click to expand...

Tony I agree, which is why I said base your stop on the [I]underlying [/I] market. To the others who may not follow this, if (say) a market is trading at 4310, and you're short at 4290, and wish to stop yourself out at 4335, ask for your stop to be basis the underlying market NOT the SB screen quote- that way there's no margin for rip off's.

To be honest "running the stops" has been an activity of floor traders possibly for 100's of years. Sometimes they find the stops and make good money, other times they dont!

CT
 
and.... try trading in sector indices and ftse 350 stocks with them - then wait for the requotes.
 
I got an email today from capital spreads today which I think is relavent to this thread.

Below is my question and their reply:
--------------------------------------------------------------------------------------------------------------------------------
Hi there,

I'm a bit curious as to whether you prefer your clients to win or lose, and if it actually makes a difference to you if they win or lose.

If for example, I was making ฃ500 per week from SBing with you, would you allow this to continue?

Thanks
Andrew

Dear Mr Shipley,

We prefer our clients to win, as this means they are more likely to stay being our clients! As we hedge nearly all of our positions, our client's p/l is not the reciprocal of ours, so if you were to make ฃ500 per week, the chances are we would too. Furthermore, a consistently profitable trader can provide us with useful market information.

I hope that this answers your question. Please do not hesitate to contact us if you have any further queries.

Kind Regards
Marc Pussard
---------------------------------------------------------------------------------------------------------------------------------
 
I think the issue may then be how the SBs run their business.

Maybe, the diligent and honest ones genuinely hedge their clients positions, such that they can make money themselves when clients win. Therefore, they genuinely dont mind if they have successful clients.

However, successful clients placing increasingly large positions makes it more difficult for SBs to hedge, hence the slippage.

Maybe some SBs DONT hedge all their clients bets, on the grounds its too much work. These SBs dont like winners as they have failed to hedge, and expose themselves to losses from good players.

If CapitalSpreads are being honest, maybe we, as clients, need to stop whining about wide spreads, as perhaps its a function of a honest dealing prcoess.
 
yep, fully agree with that. I think I will stay with CS. I was going to move to forex.com in USA (already opened an account but havent funded it yet) but I dont know. Advice anyone?

MT


trendie said:
I think the issue may then be how the SBs run their business.

Maybe, the diligent and honest ones genuinely hedge their clients positions, such that they can make money themselves when clients win. Therefore, they genuinely dont mind if they have successful clients.

However, successful clients placing increasingly large positions makes it more difficult for SBs to hedge, hence the slippage.

Maybe some SBs DONT hedge all their clients bets, on the grounds its too much work. These SBs dont like winners as they have failed to hedge, and expose themselves to losses from good players.

If CapitalSpreads are being honest, maybe we, as clients, need to stop whining about wide spreads, as perhaps its a function of a honest dealing prcoess.
Click to expand...
 
Captial Spreads do appear to have a high reputation and, as others have said, probably conduct their business in a different way to some of the other SB companies.


Paul
 
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