Best Thread Capital Spreads

[bracke]

the 'Fair Value' beloved of SB companies is comprised of two items the 'cost of carry' to the expiry of the futures AND the value of all dividends between now and the Futures expiry expressed in index points. I.e a 3p vodafone dividend may be worth about 4 FTSE points etc.

Simon

I appreciate that the 'cost of carry' may be exclusive to SB companies but is not the value of dividends also included in the Liffe ftse future? If so should not the rolling ftse daily be nearer to the liffe daily ftse future?

Thank you for your patience with my questions. I wish you a pleasant holiday but hope you do not spent it at the airport..

Regards

bracke

 

[ampro]

Every platform in the world has trouble when volumes get excessive, I think I mentioned that the CBOT was down for fully 3 hours the other day, if you had an open position in a CBOT contract then ‘tough’ you could not get out.

This is different to the real market where a trader can place a ‘Market’ order and get filled at the best price available even if his eventual fill level is significantly away from the price at which he put it in..

Aint that the truth

Keep hearing this term Direct Access mentioned on this & other FX threads?! What or rather who are you folks referring to when you make mention of D.A regards spot execution?

I presume you mean Banks, (& not the likes of Oanda etc) if so you sure have some heavy $$'s to swish around!!

edit: or maybe I.B? that would explain it maybe.

 

[Pat494]

I see your ( Capital Spreads ) rivals Finspreads are offering a generous £500 prize for the share competition. As sporting fellows YOU are surely going to compete here in the marketplace of betting ??
How about sponsering the other competition - forecasting the Dow
You never know a miracle might happen and I might win it one day :cheesy:
At least you answer your critics - well usually.................

 

[sall]

All,

Haven't posted on this board for a while , as I trade the indices mostly I was just wondering is there any one here who trades between £50-£100/ point using capital spreads. If so I would be interested to know do they get stopped very often than if they were trading between £10-£40/point?
If there is someone trading with that large sum per point do they get any tighter spreads than lower risk per point or not?

Thanks in advance

sall

 

[capitalspreads]

brake

it depends what you mean by included in the FSE future... they are included in that they reflect the future value of the FTSE with all dividends going ex-div betwen now and then taken out of the current FTSE 100 price. This is why when there is a big dividend day the FTSE 100 falls 18 points on the open the next day but the FTSE future does not budge. So our quote for the FTSE 100 will include all current dividends due but not yet paid between now and the futues expiry.

If the cost of carry was the only difference than the fair value would always be negative. In high dividend periods it is often positive!

sail

we treat all clients the same whether 1 pound or 200 pound. The margins that we require are the same but for some of our really big clients we do ask for extra margin against positions as the low margin requirement on Capital Spreads is not really equatable (from a CS risk reward point of view) when clients are trading in the equivalent of 300 contracts on the exchange.

pat494

some might consider offering a prize for the best performer as an incentive to overtrade. Not something we wish to be accused of.

Cheers from the beach

simon

 

[Pat494]

brake

pat494

some might consider offering a prize for the best performer as an incentive to overtrade. Not something we wish to be accused of.

Cheers from the beach

simon

What a COP out. You wont be accused of generosity either

Go-on Jaws - feeling hungry...................

 

[Jbat001]

some might consider offering a prize for the best performer as an incentive to overtrade. Not something we wish to be accused of.

Cheers from the beach

simon

I'm impressed that you're replying while on holiday - more than most would do, to be true. Hope you've got a nice cold beer on the go

 

[wasp]

Simon,

I know your on holiday and I hope its a good one but as you were posting elsewhere I thought I'd (re) ask this whilst I think of it...

Any chance you can add something to automatically set stops to your own account prefence (% or points etc)? I always use the same level regardless and rather than have to change it manually it would be handy if it automatically set stops to my requirements. Just make life easier and quicker.

 

[fxwinner22]

Sall said

"I was just wondering is there any one here who trades between £50-£100/ point using capital spreads. If so I would be interested to know do they get stopped very often than if they were trading between £10-£40/point?
If there is someone trading with that large sum per point do they get any tighter spreads than lower risk per point or not?"

I can tell you from experience that when you get bigger with CS you dont get lower spreads - you actually get higher spreads because they purposley slip you a pip here and there to make sure they can get their hedge on.

as far as stops go there is no difference apart from they will also slip your stop position too.

And yes, i speak from experience.

 

[Pippppin]

slippage exists in all markets, especially for larger volume trading

 

[fxwinner22]

like i dont know that! doh!!

i'm talking purposely slipping.

 

[mattmadd]

slippage exists in all markets, especially for larger volume trading

you must bear in mind that when trading with SB, trading is done on their Made Up prices but not live price in LSE exchange.

 

[sall]

fxwinner22, and all,

Many Thanks for your replies,I have a system which creams the Spreadbet firms well when I'm betting under £20/point that's the reason I asked the question because i was thinnking of upping my base considerably to trade 50-100/per point. But I believe you guys are correct , the best way probably is to have multiple accounts and trade that way rather than one big sum with one firm.

Thanks again guys any further advice much appreicated

 

[Pippppin]

mattmadd........agreed, but SB prices, and fluctuating spreads, are a direct result of the bid/ask prices in the real market. I think many spreadbetters do not have a full understanding of how the bid/ask process works in any market, and although I do not doubt that some SB companies use fluctuating bid/ask prices to their (often unfair) advantage, many spreadbetters automatically blame the SB company when the process is more complex than they think

 

[marlintrdg]

fxwinner22, and all,

Many Thanks for your replies,I have a system which creams the Spreadbet firms well when I'm betting under £20/point ...........

Thanks again guys any further advice much appreicated

sall,

So its around £20/point before you run into problems, or can you go £5-10/points above that?

 

[sall]

sall,

So its around £20/point before you run into problems, or can you go £5-10/points above that?

To be honest experiece teaches me to stay below unless your entry so great that the movement in the stock /indicie is going to be substational. But for intrad day scalping I would stay below £20/per point from experience.Oh and when I scalp I don't hold no positions over night.

 

[marlintrdg]

.Oh and when I scalp I don't hold no positions over night.

Thanks Sall

Why not overnight, is it a stop thing??

mar

 

[Jbat001]

sall,

So its around £20/point before you run into problems, or can you go £5-10/points above that?

Why not operate a couple of accounts with different SB firms to get up to the required poundage per point? £20/point with CapSpreads, and maybe another £20 with CMC (don't even think about using Finspreads - the greatest bucket shop of them all).

 

[sall]

Why not operate a couple of accounts with different SB firms to get up to the required poundage per point? £20/point with CapSpreads, and maybe another £20 with CMC (don't even think about using Finspreads - the greatest bucket shop of them all).

I agree wholeheartedly

and yes it's a stop thing

 

[marlintrdg]

I agree wholeheartedly

and yes it's a stop thing

Thanks Sall

I think you may have just saved my account, stops don't seam to dependable for the SB's

I will spend the weekend re-writing my order-placing part of my trading plan.