Best Thread Capital Spreads

[capitalspreads]

Your first question.

Why does a limit order activation get posted to a dealer before activation.

As you know Prices displayed by anyone (including us) depend upon the feeds being correct. Say a few old FX ticks go through 100 points away if dealers had no way of over riding the order module not only would all the limit orders go off but also the 'stops'. For this reason we have to confirm every activated limit order.

You second question

Daily rollovers are a problem in that if someone takes a daily position, 50% of the time they want it to expire at the end of the day and 50% want to roll it. We take the view that we will have fewer customer complaints if we clearly state 'all daily positions expire at the end of the trading session unless you, the client, actively state otherwise' . And in our case 'actively' means picking up the phone and telling us.

Simon

 

[sidinuk]

As you know Prices displayed by anyone (including us) depend upon the feeds being correct. Say a few old FX ticks go through 100 points away if dealers had no way of over riding the order module not only would all the limit orders go off but also the 'stops'. For this reason we have to confirm every activated limit order.

But you only shout out and override the limits. Hmmm... So it's ok for the stops to go through at incorrect prices but not the limits then. I wonder who's favour that works in!

 

[capitalspreads]

I wont even bother to answer that.

 

[darrren]

Capitalspreads

That is not a reasonable reply.

You should explain exactly why you think Sidinuk is wrong or you leave the impression that he is correct - I don't know.

Therefore, If he is wrong please let us know how you prevent the situation he implies.

 

[capitalspreads]

This is absolutely ridiculous .

The dealer authorisation of stops means that they will not get activated at silly prices and it also gives us the chance to be kind if the stop level is hit and the market then immediately bounces back something that we would be unable to do if the stop was just automatically transacted.

if we filled stops outside of the market or on rogue prices

a) we would have no customers
b) the FSA would come down on us like a ton of bricks
c) we would have legal disputes coming out of our ears.

we will fill stops on the same basis as we will fill limit orders.

Simon

 

[sidinuk]

That's fair enough then, and thank you for your courteous reply.

There you all go, you will never have a stop filled on a rogue quote or even, by the sounds of it, having a stop hit and the market immediately rebounding which is the bain of every traders life. Now if only they could do away with losses altogether!

 

[capitalspreads]

Ah... I didnt say you would 'never' have a stop hit on a low/high. If we have a large number of trades (or size of bets) at a particular market level we will put in our own orders to the market to ensure that we (i.e CS) do not end up with a disadvantageous position should the market just continue straight on through.
But as with all things the Devil will be in the detail !

I will monitor this site again tommorrow to answer any further questions. Have a good trading day. Bye for now

Simon

 

[ChartMan]

Seems to me that CapitalSpreads are bending over backwards in their efforts to answer all manner of questions. Did anyone ever see anything like this from any other SB Firm.? I have to say it bodes well for customer relations and if their attitude continues in this way when they go live, I don't think they'll have too many Mr. Angrys to deal with. Simon, great Job. I guess you picked the short straw.

 

[juanbyte]

Well said Chartman

My thoughts exactly.

 

[capitalspreads]

Well we are now open for business!
www.capitalspreads.com

So I look forward to talking to you all in the future

Simon

 

[dazzam]

Simon,

What spread do you charge on the Daily Wall street is it 5 as currently quoted on your front screen?

 

[capitalspreads]

Yes

 

[dazzam]

Just opened a simulated account, looks quite impressive, I like the auto stop functionality and the ability to then amend it. Is there any charges for amendment of the stop will the spread always be 5 for the Daily Wall street??

 

[capitalspreads]

there is no charge for amending a stop.

I hope that the Daily 'Wall Street' will always be 5 pips wide but of course I cannot absolutely guarantee it.
In times of market volatility it will off course be widened to reflect the risk to us (that is 'us' as a company)

 

[mustafa]

Hello Simon!
i cannot see any spot fx prices on the simulator?

 

[capitalspreads]

whoops so busy on the live site i forgot to load the daily markets on the simulator.

Sorry they will be there in a moment

Simon

 

[dazzam]

I had a nasty experience with a company changing the spread mid trade. I entered a trade based on one spread then when the confirmation came back the spread had changed thus resulting in a spread difference of a few more quid than expected. Can I confirm that if you are changing spreads that you would honour the one that a customer elected on.

 

[dazzam]

Also Simon,

How long does the live account opening process take...is it like some of the others instant??

 

[juanbyte]

Hi Dazzam

I opened an account and was trading live the same day.

My account is only two trading days old and I am up 13%

I have not found any problems at all

How are other members doing

 

[dazzam]

Cheers Fella, Blimey I am no longer a Junior Member promotion at last.