Arbitrage trading

[Hunter99]

Does anyone know if spread betting / fixed financial betting companies have an official opinion on arbitrage trading? or traders who use 2 different companies to optimise betting prices?

 

[Trader333]

If they suspect that you are using arbitrage they will ban you as this has already happened to several people a few years ago. Now it is much harder to arbitrage trade as the SB companies have acted to prevent this.


Paul

 

[Hunter99]

If they suspect that you are using arbitrage they will ban you as this has already happened to several people a few years ago. Now it is much harder to arbitrage trade as the SB companies have acted to prevent this.


Paul

I find the SB attitude you mentioned above somewhat strange because at the end of the day both companies make money on the spread and they protect themselves from losses by hedging against trader's positions (they would have to do this for "normal" trades anyway). Also why would normal traders basically throw potential profits away or fail to reduce losses by using a single SB company when they could obtain better prices by using a combination of SB companies for the same market?

 

[Mattybuoy]

both companies make money on the spread and they protect themselves from losses by hedging against trader's positions

LOL. Yes I'm sure every single SB trade is hedged.

Arbitrage is the City's big secret. We private punters are NOT allowed to do it!
--

That was an opinion. Not fact, obviously.

 

[apples10]

I find the SB attitude you mentioned above somewhat strange because at the end of the day both companies make money on the spread and they protect themselves from losses by hedging against trader's positions (they would have to do this for "normal" trades anyway). Also why would normal traders basically throw potential profits away or fail to reduce losses by using a single SB company when they could obtain better prices by using a combination of SB companies for the same market?

Trouble is the spread they have in their prices and the dealing interfaces, spreads wide + slow dealing times = no arbitrage opportunities.

In the binary market its easy to look at 2 firms prices and think 'wow, what an opportunity' - wait till you try and deal on it though

 

[Trader333]

I find the SB attitude you mentioned above somewhat strange because at the end of the day both companies make money on the spread and they protect themselves from losses by hedging against trader's positions (they would have to do this for "normal" trades anyway). Also why would normal traders basically throw potential profits away or fail to reduce losses by using a single SB company when they could obtain better prices by using a combination of SB companies for the same market?

I am only letting you know what has happened to others in the past but dont take my word for it just try it and see what happens and I will be very surpised if you are able to make any form of consistent profit using arbitrage with SB companies.


Paul