Best Thread Capital Spreads

[LION63]

There is no pleasing people is there? A question was asked and a response was given, unfortunately, a few took the reply out of context; CS step forward and attempt to clarify their position and what follows? Another tirade of scandalous comments.

It seems that we ignore the fact that we are free at all times to take our business elsewhere without penalty. It beggars belief that I would consider doing business with anyone I assume is a con merchant.
QUESTION:
A friend pops round for a few drinks during the yuletide season and moans that he has just lost his money playing poker but he realised from the outset that his opponents were using a marked deck. What would your response be?

 

[TheBramble]

The Blades - I'm stunned. No provocation intended, but I gathered (perhaps incorrectly) from the BBB interchange, you were sort of pro-SB?

Lion63 - ANSWER: "Have you tried Spread Betting?"

Just kidding...

What is the issue, really? That SBs have wider spreads than you'll find in the Bid/Offer on a DA broker? True.

That an SB may bias a price. True (ANd guess what - that's information too!)

That an SB may bounce you if you get too good - ahem...nope. They'll ride your coat-tails.

That SB is profits are tax free? True.

If you've got the timeframe and the trade right - why is there any issue other than timing, instrument, platform, entry, exit, stop, risk and money management? You have the freedom to choose ALL of these.

 

[the blades]

There is no pleasing people is there? A question was asked and a response was given, unfortunately, a few took the reply out of context; CS step forward and attempt to clarify their position and what follows? Another tirade of scandalous comments.

It seems that we ignore the fact that we are free at all times to take our business elsewhere without penalty. It beggars belief that I would consider doing business with anyone I assume is a con merchant.
QUESTION:
A friend pops round for a few drinks during the yuletide season and moans that he has just lost his money playing poker but he realised from the outset that his opponents were using a marked deck. What would your response be?

hmmmm.......lion - I'm sure you realise just how firmly my tongue was pressed into my cheek?

UTB

 

[TheBramble]

The Blades - I'm stunned. No provocation intended, but I gathered (perhaps incorrectly) from the BBB interchange, you were sort of pro-SB?

Doh. Late in the day.

I'll be more careful next time.

 

[kevin546]

There appears to be a little fun going on here, so let me say that my previous comments are not meant as anti spreadbetting or anti direct access for that matter. The market however considered does not let you off lightly if you trade incorrectly but both mediums can return good profits you may just find that with spreadbetting you have to adjust in some areas to make the most of your trading with them.

Kevin

 

[LION63]

The Blades,

It is Christmas and the Season of Goodwill so I would expect nothing less from a Gentleman.

Merry Xmas to you and yours.

 

[LION63]

The Bramble,

May I share a bit of your tipple?

 

[gullible]

Capital Spreads,

I do not expect SB prices to be exactly the same as spot prices. Majority of my trades cash and futures are on spot prices. I fully expect and appreciate that SB prices will be different from spot prices.

No libel was intended, my understanding of scalping was and is the practise of making very small % gains on large number and or value of transaction. I believe that it is in that context the question was put to you.
Fully agreed about your tight spreads.


With reference to the definition of scalping consider your comments:-
(these are not being quoted verbatim) ...........will ask them to take their business elsewhere, put all his/her trades on hold.

If it was made clear that there are traders out there who may indulge in dubious tactics than the reactions to your comments may well might have been different.

Finally, let me wish you a very Mery Christmas and an enjoyable New Year's Eve.

 

[mustafa]

Hi!
Has anyone had a look at the website of the parent company of capital spreads?
www.londoncapitalgroup.co.uk
a new spreadbet service specially for forex/precious metals!
A great idea!

Simon,
am anxiously waiting for the launch!
with my very best wishes!

 

[Edster]

Is it possible to change your password on the Demo Account? I've searched but can't find how to do it.

Cheers,

Edster

 

[kevin546]

Thought you might be interested.

I did a quick check of some share price spreads on Capitalspreads and then compared them to Deal4free who have always claimed to be the leader when it comes to narrow spreads. I have been with them for about 3 years and must be one of the few who are happy with them. Anyway I like to speak as I find so having opened a CS account have considered ther spreads on some FTSE 100 companies. I know this market is closed but in the main CS came up better and considerably so in some cases. Obviously there were a few where D4F were tighter but overall CS were betting sometimes as much as 2 - 6p. In the case of D4F the prices were still changing out of hours yet CS was closed but it was the spread I compared. If CS generally fills orders at these spreads then they are IMHO offering good value in this regard.

Kevin

 

[Roberto]

I'm sure that's right, Kevin, and let's keep badgering Simon about longer opening hours in 2005 as well. It speaks pretty highly of them that the main complaint is that their trading hours of 14 hours per day isn't enough.

Happy New Year to all!

 

[Thoth]

I'm sure that's right, Kevin, and let's keep badgering Simon about longer opening hours in 2005 as well. It speaks pretty highly of them that the main complaint is that their trading hours of 14 hours per day isn't enough.

Happy New Year to all!

I agree, limited trading hours, especially for certain markets, is the main drawback with using CS

 

[starspacer]

Agree Thoth and Roberto. Also, consider this.....

You have a long position on the Dow (sorry, US30) with D4F. Naturally, you set a stop at say 2% below the current price. Overnight, an unexpected disaster occurs and the Asian markets start sliding. The US futures (and therefore US30 price) starts sliding in tandem. Luckily, your stop triggers at say 3am GMT. At 4am GMT, the slide becomes a rout.

Now, consider what may occur if you have this same position with a SB company say which opens at 7am (rather than 24hr dealing). Your stop is at the same place, but at 7am, the US30 gaps down way beyond your stop and you lose your shirt.

Granted that in the first scenario, you may not have the stop triggered at exactly the price set, but it strikes me that the risk is inherently less than in the 2nd scenario and could be the difference between survival and financial disaster.

This is the main reason why I tend to use D4F for index betting.

 

[Roberto]

Can't argue with you at all. I almost never hold anything overnight. If I did those longer trades, it would be a problem for me using CS.

To be fair, though, it can also work in your favour. An example different from yours is where your position reverses in the night through your stop level, but then recovers. With another firm, you're stopped out on a loser. With CS, you're still very much alive and in the game at 7.00am when they re-open.

 

[kevin546]

Starspacer

I accept that your example produces a far greater loss if a deal is left till the start of the next day rather than have the opportunity to close 24 hrs with someone like D4F.

The example you discuss is very valid for trading in general because you have no control over the market and your stop may not help you as it would normally.

Therefore when trading it produces something to consider when you select at what size to trade or for that matter how you trade. How can you reduce your risk in addition to what you have highlighted set stops at different levels. The alternative maybe to consider your bank and what level of sudden dramatic points you can take and not avoid wipe out. There is no real way of telling how best to gauge this because what has gone before does not mean that the market WILL NOT EXCEED it the next time. Of course you could look to the past for some info and consider a bank that supports a large drop in the instrument you trade. The more that you can work from the better chance of survival 1000 points for some instruments would appear very safe with this in mind yet with the FX or US who knows if such figures could be taken out overnight.

During the day we accept we risk our stop and our ability to act if in a position to do so but even a stop could be missed if trading is suddenly suspended and then opens dramatically lower or higher. Anyway something to consider and fortunately it does not happen very often at the extreme levels I refer to. In respect of your own comments I would suggest it all falls down to risk according to the style you trade and the balance of probabilities of being caught out as you describe. Of course you could adopt a system of hedging but this would I suspect impact on the general performance of such a system if hedging is always required.

Regards

Kevin

 

[kevin546]

This topic is one reason why many prefer day trading because the risk has gone during each session and only applies while the trade is open. Such traders feel they have greater control, it means playing for a smaller piece of the pie. However that is not always the case if they return the next day and continue to nibble away. Yes there will be marks ups but at some point there will be draw downs providing opportunities to take some more. So who has the greater risk. The one who holds or the one who returns each day.

Kevin

 

[Thoth]

I tend to hold my trades open for several days or even weeks, assuming I've detected a short-term trend. It's been working fine up to now, although I did get clobbered a few weeks ago when I got things wrong...luckily, I managed to recover my losses.


Then again, I 'm only a small time player, usually betting between 1-5 $ per point

 

[kevin546]

Simon

As the New Year has now arrived; are you in a better position to clarify when the IT people you are employing to upgrade your new real time charts will become a reality.

Happy New Year to all

Kevin

 

[jaykay3]

Simon,

Do you intend to reduce your GBP/USD spot spread back to 3 pips in the near future or is your increase to 4 pips permanent. It's just that I swapped from D4F to yourselves when your spread was the same but will go back to them if your spread is going to remain worse in the forseeable future.