Best Thread Capital Spreads

[capitalspreads]

chicken or egg

the point is well made guys . and as i say we are comissioning a (limited) solution.


James6848

sorry ..... on the web site if you click on customer support and then go to Technical Support it will talk you through some of the problems that can be solved by yourself...if you have further trouble please call our cust service dept 020 7600 0122 and they will try to help.

Up to now we have not had a single client unable to get on in some way or other.

Simon

 

[james6848]

chicken or egg

the point is well made guys . and as i say we are comissioning a (limited) solution.


James6848

sorry ..... on the web site if you click on customer support and then go to Technical Support it will talk you through some of the problems that can be solved by yourself...if you have further trouble please call our cust service dept 020 7600 0122 and they will try to help.

Up to now we have not had a single client unable to get on in some way or other.

Simon

Thanks Simon, your team are on to it. Sorry if I was a bit tetchy - one of those days.
I don't think it's anything I've done, though - it was working fine to begin with.

J.

 

[JP1966]

Do you do margin fx yet or is it still just spread betting?

If you do margin fx what is the leverage and what is your spread for euro$ and cable?

 

[Perrington]

I believe you are effectively already trading a mini-size account whilst spreadbetting. Due to taxation and British law, I dont believe a spreadbetting firm can offer margin trading, as it is a different kind of product, Simon will correct me if iam wrong.

Simon, if 35% of your total business is FX then surely 24 hr trading is going to be " interesting " on your behalf, even if the overnight trading is only 10-20% of the day trading then it would still account for a worthwhile amount. Ofcourse its a two way scenario here, and people who intend to try and make a few quid out of FX require that you offer a complete FX service, inparticular for stops etc. Obviously, people are unwilling to trade beyond 7pm GMT because they are forcibly required to close bets before 9 pm as has been stated before, and this is not appealing in the slightest. The only people that dont mind this are long-termers, and I feel they are more likely to be trading FX via alternative mechanisms.

As you have already answered this by saying an automated 24 hr platform will be available soon, then iam sure everyone will be very happy.

Perrington.

 

[JP1966]

That isnt right re the law. IG do both and I am sure CMC.ODL,IFX etc do as well.

 

[claptonian]

After a lot of research regarding SB firms I like CS more than the others but I have not opened an account for three reasons:

No 24/7 FX facility
No guaranteed stops (in some cases I would prefer to pay the extra spread for peace of mind)
No realtime charting facility.

I hope one day all this will be eventually offered by CS.

 

[Perrington]

JP1966 I was not aware of spreadbetting firms offering margin, thanks for the correction. I am pretty certain that you are already in effect trading the equivalent of a mini-sized retail FX broker anyway.

.

 

[Perrington]

Simon

Is it possible to place a trade request at a certain market price ? For example, the Dow is sitting at 10400, however I personally anticipate support at 10370, could we maybe place orders to buy at 10370 even though the current price for buying is 10400. The reason why I ask about this, is because I would be certain to get filled automatically when the market moved to 10370 and not have the unfortunate experience of a declined bet if the market suddenly started to move quickly around this area.

Perrington.

 

[robert bincroft]

This is a post regarding Spread Betting with Capital Spreads


I have both accounts with capital spreads, very easy to understand. With the 'simulated' account you can test your ideas without breaking a sweat, 'it's only for fun' . Put in a trade - go away - come back later and find out how you would have done. One thing I have noticed when running real and simulated accounts at the same time on different computers that the simulated is given an advantage ie, it is easier to win on simulated, you can turn this information to your own advantage by betting opposite to this advantage. The spread may be xxx45 - xxx48 real xxx48 - 51 simulated which means that the Capital Spreads compiler thinks that the Market will fall. ie, he has given the simulated a 3 pip advantage, get it.

 

[capitalspreads]

Perrington

you can place orders on our platform at any level you like. . if you click on the order button (instead of the trade button) and then place your order at the price you want to be activated then you can go away in the knowledge that if your price is reached (in our market hours) you will be fillled so long as you have the funds available on your account. we are about to launch a contingent order module which will allow you to pre select your stops and limit orders as well.

robert

actually that is not (quite) correct .... the price feeds for the simutor platform are slightly different to the live platform. The simulator has a price feed that is based upon every price feed data coming in on an open data feed... our live site relies on price feeds from selected broker/banks who are slightly more reliable !! (hopefully).

jp1966

it depends on what you call margined trading.. on Cable (£/$) we require our clients to have at least 60 times stake on account to place a trade.... but 60 times stake actually works out at a leaverage (currently) of 313 (1.8803/60) ... and we quote this in a price 3 pips wide !!! (€/$ is 3 pips as well)
I would challenge anyone to find a smaller margin requirement combined with such a tight price (remember spread betting has no fees/commissions etc).... admittedly we do enforce stop levels but for serious FX traders a 50 odd point stop loss level is miles away anyway !

claptonian

i would agree with you on the 24hr bit... but guaranteed stops (GS)?!.... SB companies accept guaranteed stops on FX but they will not allow a guaranteed stop to be placed at anything remotely close to a reasonable level away from the current price, they will charge a (much) wider spread to put the bet on (because of the stop) and anyway they quote a much wider spread than us in the first place(in general) . The wider spread also increases the chances of your stop being hit !!

It is difficult enough to make money in the markets in the first place. The percentage of truly successsful traders (and here i mean dealers who make a living at it) is small. Paying the GS premium equates to a massive probability shift making it far less likely for the trader/punter (you) to make money.

A bit of a rant there ... but I am frankly stunned by the number of people who quote 1987 or 9/11 as a reason for insisting on GSs.... if you actually stop to think about it the reason that people can remember these date is BECAUSE they are so few and far between.

In 1987 the markets made a steady fall in trading hours (a normal stop would have done just as well)... 9/11 ? an often forgotten fact is that the FTSE (and europe) actually traded higher on the day after the attack before falling out of bed (look at the charts if you find that unbelievable) although the American market did admittedly gap alarmingly on their eventual opening.

What you also have to take into account is the fact that for a major (out of hours) move to harm you ... you would have to a) have an open position in the first place!! b) be the wrong way round !! and finally c) for the market to actually open (significantly) through your normal stop anyway....

of course GSs have their place.... BUT to put it into perspective...one of the SB companies calls GS accounts ".X accounts" by which they mean "do not hedge"(!) I think that says it all !! They (and in my opinion quite correctly) take the view that it is almost impossible, in the long run, for a large pool of traders making bets on such wide spreads to make money. So why bother covering?

Simon

 

[jaykay3]

Simon,

I agree with the comment made earlier re the 24/7 FX trading - it is not particularly that people want to trade through the night but more the fact that they would like to be able to manage their account during a 24 hour market.

Will your automated platform allow this ? eg if I want to close out or take on a new position out of your normal hours.

jaykay

 

[capitalspreads]

jaykay

the initial thrust will be to activate stops out of hours... allow stops to be moved...allow clients to trade out of existing positions.....limited ability to initiate new positions......

simon

 

[Jyde]

...
of course GSs have their place.... BUT to put it into perspective...one of the SB companies calls GS accounts ".X accounts" by which they mean "do not hedge"(!) I think that says it all !! They (and in my opinion quite correctly) take the view that it is almost impossible, in the long run, for a large pool of traders making bets on such wide spreads to make money. So why bother covering?
Simon

Simon, one fact that helps you argument by far is the fact that, from earlier feedback and personal experience, I know I can always trust CS to try their best to honour the SL and in case I am not happy, to apply fair judgement should I have a complaint.
I am not so confident with regards to the other SB company you refer to (and yes, I have made an educated guess as to who they are)!

Another thing that puzzles me - and I know I keep bringing this up, sorry - but all the gymnastic going into calculating the fair price just to end up with a price that does not reflect any real numbers...? I mean, you take a cash price and futures price, make out the fair value, take the changes from the e-mini and apply it to the fair price and call it the cash price...
I know this is a naive qustion, but why not simply give us e-mini futures prices. If that is the changes you apply to the so called cash price anyhow, those wishing to trade the cash prices could simply do the addition/subtraction, whilst those happy with trading of the futures would have a real, existing price. Like this, we all have to do calculations and comparisons to get something we can actually chart?

This above naturally applies mainly to daily index and the two major FX pairs (GBP and EUR). I know you quote the quarterly pretty correcly and am happy with that!

Simon, from previous posts you should know I am pretty pleased with CS so please correct me if I have misunderstood anything in the above - it might just be me that lack the experience - or I am simply to thick-headed - to understand the finer aspects. If that is the case, I apologise, but would appreciate an answer, if nothing else, for my own education... and I might even stop bugging you with it ever so often.

All the best...

 

[neil]

managing trades out of hours

jaykay

the initial thrust will be to activate stops out of hours... allow stops to be moved...allow clients to trade out of existing positions.....limited ability to initiate new positions......

simon

Amen

 

[Perrington]

not quite Amen yet ! the discussion continues.

Simon

Can you clarify exactly what " limited ability to initiate new positions " actually means in practical terms please ? In what way do you intend to restrict entering new positions during the asian market hours etc ?

Perrington

 

[capitalspreads]

Perrington

limited.... will mean smaller maximum size .... and no ability to stake build....

99% of our clients trade in less than the size we are contemplating... so it will not affect the majority's trading style.

Simon

 

[capitalspreads]

jyde

we do quote the e-mini futures on a daily market (look in the various drop down fields) and on a futures basis (ie JUN SEP) etc..... the reason that we (and the other SBs) quote the daily cash is because clients want it.... the cash price is what they (you) read about in the FT (Sun!), what they see on BBC news and what is generally talked about. Clients can see the closing levels on web platforms and it is easy for many of our less experienced clients to understand.

Futures prices (real time) are generally more difficult to get hold of.

It is a classic case of what the customer wants the customer gets.... even though, as you say, it can cause some misunderstanding.

Simon

 

[Perrington]

Sounds good to me

 

[Jyde]

we do quote the e-mini futures on a daily market (look in the various drop down fields) ....
Simon

As for indeces, you are, of course, right. I just realised that I did not see them as I am still using the demo account vividly and checked there. I shall go see my optician promptly.

Any change of seing the same on the two major pairs (EURUSD and GBPUSD) as they are very liquid, i.e. a daily futures price, preferably following the real futures price - you qoutes are always a bit off, I guess due to that fair-price calculation? (I know you will want to punch me in the eye if I say 'your old company always quotes these two futures to the pip', so I am obviously not going to say that... ahm... Seriously, I am not having a go, just trying to understand - and get my expectations in line with reality).

...
It is a classic case of what the customer wants the customer gets.... even though, as you say, it can cause some misunderstanding.
Simon

I understand, no arguing with that; that's what makes you you.

Thank you again, Simon. I know some of my questions are ignorance itself, though if I don't ask...

All the best...

 

[capitalspreads]

jyde

FX futures ....actually the FX market is the one market where the spot actually wags the Future...The futures are far more illiquid than the underlying spot (cash) price. We quote the future as an interest rate calculation from the spot price. The €/$ future is quite liquid but not always and the £/$ is, frankly, completely illiquid often having a 5 to 10 point spread.... whereas the spot is always reasonably well supported.. except over the non farm payroll etc.

the reason that occasionally the futures are not always bang in the middle of our quote is a combination of a) the illiquidity already mentioned and b) the interest rate difference between the two relevant currencies does change a little on a daily basis and we may miss this slight change which will cause the future calculation to be slightly out.

I am afraid that this illiquidity makes it impossible for us to quote it on a daily basis.

sorry

Simon