Best Thread Capital Spreads

[potshot]

last friday in the afternoon they closed all the markets for about 2 minutes, just before the fed annouced making available $150 billion to banks.

Once they opened the markets the price had spiked 20 to 30 points in affect stopping anybody buying or closing a trade if they were short.

I am going to move to of my other spread betting accounts even if it means bigger spreads. And no automatic stop lose set that eats into you trading resources. i would rather have a margin call and add more money to the account.

 

[grantx]

TT,

"Capital Spreads have increased their spread in crude oil to 8 points." Their Teletext service must have malfunctioned.

Potshot,

Fckin' unbelievable. Rank amateurs.

Grant.

 

[wasp]

Potshot,

Fckin' unbelievable.

Is it really?!

 

[gooseman]

oil has moved over $4 today alone....anyone heard of something called volatility?

 

[potshot]

i should said capital spreads and the spike was on the ftse didn't look at the other markets. When the non farm payrole came out I have never seen a spread betting who has spike the price so quickly like capital spreads did. Over the year i have traded with different SB's and have seen big numbers come out for non farm payrol but I have managed to get a trade in, but with capital spreads the price jumped almost 100 points before I could blink.

I have had enough. I am going to twowayspreads to take up their off of a free £200. it might not seem a lot to some but considering I am trading at 1/10th my normal trading stake its not bad and then I am off to IGindex seeing I have read positive reports about IG.

I have lost money because of the automatic stop loss, its eaten up all my trading resources not allowing me to double up if the bet goes against me. I can't be bothered with trying to guess what stop loss to set to release enough trading resources. Good bye capital spreads.

 

[gle101]

i should said capital spreads and the spike was on the ftse didn't look at the other markets. When the non farm payrole came out I have never seen a spread betting who has spike the price so quickly like capital spreads did. Over the year i have traded with different SB's and have seen big numbers come out for non farm payrol but I have managed to get a trade in, but with capital spreads the price jumped almost 100 points before I could blink.

I have had enough. I am going to twowayspreads to take up their off of a free £200. it might not seem a lot to some but considering I am trading at 1/10th my normal trading stake its not bad and then I am off to IGindex seeing I have our own read positive reports about IG.

I have lost money because of the automatic stop loss, its eaten up all my trading resources not allowing me to double up if the bet goes against me. I can't be bothered with trying to guess what stop loss to set to release enough trading resources. Good bye capital spreads.

potshot, no offence meant, but it seems you need to get back to basics. Don't blame the SB if you are taking too big a risk at such an important news release.
1. Money management (1-2% of the capital, including stop loss)
2. Your own defined stop loss

 

[potshot]

gle no offence taken. I was just making a observation. What did put me off them was the way I have seen them close markets and it happened again on friday once the fed released news and they opened again once the market had moved.

I have read posts on here saying they close the markets and once the news is out they re-open. I have seen it for myself now. I have a flat position 98% of the time when important news is released.

It has nothing to do with if I lost money or not, had a trade running or not. i just thought it was a sharp practice. We punters put a lot of effort in reading the market without SB firms moving the goal posts as it suits them. I was looking at the screen wondering why has everything had been closed, then the news was released on bloomberg and then they opened everything up with a gap on the chart.

I would rather trade with SB firm who didn't close the markets becuase the news was unexpected and then reopen once the market has moved.

If I lose money its down to me and not the SB firm, I chose to trade a certain market long or short, the SB firm didn't make me click the button. Its the same if you know there is trade you should do and don't, the buck stops with me.

I am moving on from CP because of the sharp practice I saw and I don't like these automatic stop losses they apply. I never used them in the past and I like to see what actual trading resources I have.

pot

 

[grantx]

Wasp,

No, it isn't.

Goose,

Well, there's implied volatility, historic volatility, forward volatility.

For CS we have: spread volatility, sporadic price-feed volatility, telephone quote volatility, Terms and Conditions volatility (you have to back out on that one - it's unseen, even obscene), Simon's consistency volatility (very simple - you can work it out in your head). No doubt I could find some more.

'CS - where theta is always positive'.

Grant.

 

[gle101]

gle no offence taken. I was just making a observation. What did put me off them was the way I have seen them close markets and it happened again on friday once the fed released news and they opened again once the market had moved.

I have read posts on here saying they close the markets and once the news is out they re-open. I have seen it for myself now. I have a flat position 98% of the time when important news is released.

It has nothing to do with if I lost money or not, had a trade running or not. i just thought it was a sharp practice. We punters put a lot of effort in reading the market without SB firms moving the goal posts as it suits them. I was looking at the screen wondering why has everything had been closed, then the news was released on bloomberg and then they opened everything up with a gap on the chart.

I would rather trade with SB firm who didn't close the markets becuase the news was unexpected and then reopen once the market has moved.

If I lose money its down to me and not the SB firm, I chose to trade a certain market long or short, the SB firm didn't make me click the button. Its the same if you know there is trade you should do and don't, the buck stops with me.

I am moving on from CP because of the sharp practice I saw and I don't like these automatic stop losses they apply. I never used them in the past and I like to see what actual trading resources I have.

pot

Sorry if I somewhat misunderstood your post. By your statement "I have lost money because of the automatic stop loss, its eaten up all my trading resources not allowing me to double up if the bet goes against me". I assumed you were talking about actual trades and a trading strategy.

 

[gle101]

Well, there's implied volatility, historic volatility, forward volatility.

Grant.

Well, then it should'nt come as a surprise to you, when the real market volatility increases and spread widens, the SB will probably adjust their spread to reflect the new market condition.

 

[potshot]

gle

I was talking about actual trades, but these automatic stop lose is alien to me and have never used them before. With £12K in a account a £45 on the dow leaves you with £20 trading resources. It leaves you nothing to do other bets with and and if it goes 20 to 40 points against you, you can't add to your bet. Not unless you mess around with the stops to release trading resources, something I can't be bothered with, did it a few times. I had a bet running it left me with hardly any resources but when I closed the bet there was actually more resources left than the screen showed, 25% more.

I am finished with CS now and will fund a different account on friday to continue. I am taking a few days off spread betting to enjoy the sun.

pot

 

[gle101]

gle

I was talking about actual trades, but these automatic stop lose is alien to me and have never used them before. With £12K in a account a £45 on the dow leaves you with £20 trading resources. It leaves you nothing to do other bets with and and if it goes 20 to 40 points against you, you can't add to your bet. Not unless you mess around with the stops to release trading resources, something I can't be bothered with, did it a few times. I had a bet running it left me with hardly any resources but when I closed the bet there was actually more resources left than the screen showed, 25% more.

I am finished with CS now and will fund a different account on friday to continue. I am taking a few days off spread betting to enjoy the sun.

pot

Pot, well then I have understood you correctly. Do you actually mean that your stake is £45, on the Dow rolling daily, and you are using CS default stop loss of 150 points on the the same? With a capital of 12k it seems to be an extremely risky undertaking. A few trades against you and you will burn the entire account. Have I understood you correctly? Also you are mentioning doubling up (a Martingale ver.) this makes things look even worse. Please understand that I am well aware that all this is no business of mine, however, my concern is genuine and well meant. Many of the SB's have a default stop loss. I agree, that they set the stop loss too far away from the entry level. Whether it is on purpose or not, I don't know, but it is essential to change the default stop loss level to fit one's own trading strategy. ODL has a limited account with a much narrower default stop loss, maybe this is something for you? Otherwise you just have to apply your own defined stop loss, and count that stop loss into your money management strategy. Enjoy the sun.

 

[grantx]

Gle,

“real market volatility”? This is a new one. Is it from one of CS’s proprietary models?

You’re loyalty is very touching, Gle.

Good Trading, mate.

Grant.

 

[gle101]

Gle,

“real market volatility”? This is a new one. Is it from one of CS’s proprietary models?

You’re loyalty is very touching, Gle.

Good Trading, mate.

Grant.

Are you implying that the SB is the "real market"? If that is the case, it is definitely something entirely new from you're side.

Do you by this mean my loyalty towards pot the trader, the SB industry or my loyalty towards both, ha ha! Never mind, thanks a lot anyway.

Same to you, good trading.

 

[grantx]

Gle,

“when the real market volatility increases and spread widens” (your post #4267). I wasn’t implying anything, simply quoting from above.

I’ve noted your loyalty; perhaps some may even suspect your an employee. Well, I think your are, by virtue of the reference to “real market volatility”, which is actually the underlying used by CS to determine their prices. This can only be known by those with intimate knowledge of CS’s machinations – an employee. Moreover, it enables me to reconcile impeccable staff backgrounds with their lousy explanations, and confirms earlier suspicions that these explanations are actually a red herring.

They are using an aspect of quantum physics which states (roughly) that X is A and not A (simultaneously), eg the FTSE is 6005 – 6006 and CS’s quote is 6000 - 6011, ie the “real-market”. Further, if volatility increases, then “real market volatility” increases which justifies even greater spread, ie 5995 – 6016.

How the actual figure for the ”real market” and for out-of-hours quotes (where effectively there is no underlying) is determined may be a combination physics (quantum mechanics) and metaphysics. I’ll look into this further.

Grant.

 

[potshot]

gle

£12K and £45 a point was a example how 1 trade eats up your resources. I would certainly not go £45a point with just £12k. I believe in having plenty of margin. I wouldn't mind if you could set the stop loss at say 20 points from your opening position to happen automatically and then if the trades goes in your favour you can move the stop loss up or down. I have seen too many traders who trade right upto their margin and get wiped out.

I like 50% of margin minimum. Having been away from the markets a couple of years I am still working out my trading stratedgy and learning all over again. With £12K in a account my maxmium bet would be £20 a point but my average would be £10 a point unless a trade is 90% chance of making money and 10% chance of losing money. I like to have abit in reserve if a disaster struck which will let me come back another day. Some might say £12K I would bet more £40 or £50 a point but to me thats the way to get badly burned. Now on doubling up, if you don't use a stop for a trade and it goes against you and with plenty of margin I can double up which would take me to £20 a point with plenty of margin in reserve.

pot

 

[tar]

Their (auto stops) tricky and annoying , if i want to move a stop 20 points on US crude oil i need (20x my stake) free trading resources ? on live account they ask more than 20 y ? it happened many times

 

[gle101]

Gle,

“when the real market volatility increases and spread widens” (your post #4267). I wasn’t implying anything, simply quoting from above.

I’ve noted your loyalty; perhaps some may even suspect your an employee. Well, I think your are, by virtue of the reference to “real market volatility”, which is actually the underlying used by CS to determine their prices. This can only be known by those with intimate knowledge of CS’s machinations – an employee. Moreover, it enables me to reconcile impeccable staff backgrounds with their lousy explanations, and confirms earlier suspicions that these explanations are actually a red herring.

They are using an aspect of quantum physics which states (roughly) that X is A and not A (simultaneously), eg the FTSE is 6005 – 6006 and CS’s quote is 6000 - 6011, ie the “real-market”. Further, if volatility increases, then “real market volatility” increases which justifies even greater spread, ie 5995 – 6016.

How the actual figure for the ”real market” and for out-of-hours quotes (where effectively there is no underlying) is determined may be a combination physics (quantum mechanics) and metaphysics. I’ll look into this further.

Grant.

I have heard this one before, and every time it makes me smile. I take this as a compliment.

If I were you, I wouldn't attempt to try solving the later part. It might contain an equation that you can't handle, unless of course, you have a Phd degree in theoretical physics. Even so, you might find yourself ending up in a black hole.

 

[grantx]

Gle,

I have an MSc in Astrophysics - would that help? I don't accept Black Holes (but I do accept Black-Scholes as valid basis).

Grant.

 

[gle101]

Gle,

I have an MSc in Astrophysics - would that help? I don't accept Black Holes (but I do accept Black-Scholes as valid basis).

Grant.

Ha Ha! Glad to notice that you can see the humorous side of things.