Best Thread Capital Spreads

[capitalspreads]

markt99

difficult question to answer as we have not yet actually restricted any client on the binary platform..although we do check some clients quite closely due to the obvious arbitrage potential of binary markets... or if they work for a competitor.

If a client was making £1000 a week we probably would not even notice him. Unless he was picking off prices 20 times a day...in which case the dealers may, as above, check that every trade was kosher.

Simon

 

[Jbat001]

jbat

the market is set for 24 hr trading BUT it does time out if there are no price changes within a certain period, which in all honesty is probably quite frequently in the middle of the night for the SEK. Also the spread widens to a slightly eye watering 80 pips. So probabably not a market for short term speculation!!

Simon

Hmmmm, the spread on USDSEK has gone to 40 pips rather than the customary 30. I know we spoke about something similar earlier in the thread (and I have no open position this time that could have been affected), but does this represent a slight deliberate widening of the spread, or just a blip?

 

[capitalspreads]

this reflects me buggering around with the 24hr market settings last night and accidentally putting the general spread to 40!

Simon

 

[coolTrader]

this reflects me buggering around with the 24hr market settings last night and accidentally putting the general spread to 40!

Simon

really on a live system?! hmmmm You must be having a laugh Simon.... I wonder what would have happened to the unsuspecting mug who puts a trade without first checking.

 

[rjay]

Is there any way of setting the CS charts to open with your favourite settings by default ?? They seem to open with 10minute and ADX automatically whereas I'd prefer 1hour and MACD.....

 

[capitalspreads]

rjay

the charts will always open with 10 mins but you can change the other settings by just clicking on the 'disc' icon next to the print and paintbrush icons. This saves your technical settings for the next time you log in.

Simon

 

[wasp]

Amazing....

So I'm running a few tests on a new strat to coincide with my regular ones and I decide to use the old CS account, but, theres always a but....

Similar to my other strat, I trail losses behind support and resistance with a bit of leeway. Usually works quite nice. I'd been stopped out a few times questionably before and today I must have just been in a bad mood as I decided to find out how. Price retraced through the support and resistance yet, whilst watching the CS chart and ticker, it stopped one pip below my stoploss and sat there for 30 secs then, as per plan dropped off again.

This is all good but, CS charts are 'indicative'... okay, I can deal with that, get a few different platforms running, happy days, but wait, the ticker it seems is also indicative as whilst the high showing on their ticker is 36, I got stopped out at 37! Not in the best mood, I have mailed and been told that the bank feed hit 37 so it was right... maybe its just me but, if the ticker says 36, you can't trade higher than 36 and their charts (and your others) don't offer higher than 36... how can you be stopped at 37?

 

[dcarrigan]

Amazing....

So I'm running a few tests on a new strat to coincide with my regular ones and I decide to use the old CS account, but, theres always a but....

Similar to my other strat, I trail losses behind support and resistance with a bit of leeway. Usually works quite nice. I'd been stopped out a few times questionably before and today I must have just been in a bad mood as I decided to find out how. Price retraced through the support and resistance yet, whilst watching the CS chart and ticker, it stopped one pip below my stoploss and sat there for 30 secs then, as per plan dropped off again.

This is all good but, CS charts are 'indicative'... okay, I can deal with that, get a few different platforms running, happy days, but wait, the ticker it seems is also indicative as whilst the high showing on their ticker is 36, I got stopped out at 37! Not in the best mood, I have mailed and been told that the bank feed hit 37 so it was right... maybe its just me but, if the ticker says 36, you can't trade higher than 36 and their charts (and your others) don't offer higher than 36... how can you be stopped at 37?

have noticed this on live platform with futures betting. if i illuminate bars they change color when hit have seen it hit top or bottom and not change but bounce back. makes me think that futures have touched that price but not taking.

 

[capitalspreads]

wasp

back from a bit of sun so thought I would look into your comment.

At first i thought you were commenting that you had a stop at 37 but were stopped out even though the high was apparently 36. But on investigation it was the other way round you had a stop at 36 but the computer slipped you a pip to 37. I commented on this earlier in this thread, basically stating that the computer (the autotrader which many of you seem to be enjoying at the moment) sees the offer go from 35 to 37 in one go and thus stops you at that level as the computer is designed to fill at the first 'our quote' on activation. It is a consequence of the oft requested autotrader function.

We are looking into a filter on this but it is slightly difficult because if the market gaps 'big time' we certainly dont want to be filling stops or new orders at unrealistic (to us) levels.

I see that the customer service guys refunded you the pip.

Simon

 

[Pippppin]

Simon

Any chance of introducing controlled risk bets of the type offered by IG-Index? If not, why not?

 

[Legion]

Simon

Any chance of introducing controlled risk bets of the type offered by IG-Index? If not, why not?

yeah good one


Controlled Risk Bet's No eXtra Spread CapitalSpreads Going Beyond The Book.



intra session subject to min stop.No overnights

 

[capitalspreads]

legion / pippin

controlled risk stop with no extra spread?? ummmm pull the other one.

My understanding of controlled risk stops is that they are only offered a long way away from the current price AND you have to pay a much wider spread. SB companies are no fools ... for instance the closest you can place a guaranteed stop in US equities is 10% of the entry price away (i mean ..great! 10% away!! what is the point) the only way this is going to help you is if you are the wrong way round over a profit warning.

So. 1. you have to have a position in that particular stock in the first place 2. your position is the wrong way round and 3. the market has to move more than 10%. (and you get charged for this !?) I am truly sorry but as far as I am concerned being charged virtually double spread on every opening trade is just not worth it. SB companies make an absolute fortune out of the percieved protection of 'Guaranteed Stops'. (why do you think they offer them??) or in some SB cases give smaller clients the option of only having a guaranteed stop account or nothing.

do you think that they do this out of the goodness of their hearts??

This year using our boring, ordinary, margin with stops on all positions has resulted in precisely zero BAD DEBT. Our stops policy has proved the test of time.. it allows much lower margin requirements with reasonable security without scr***ng the client on each and every bet.

In GBP/USD we quote 3 pips wide (24 hour market) our average 'day trader' in 'cable' trades 85 times a month. Guaranteed stop price is a charge of 2 pips (at least) and you can only place the stop 50 points away in most cases. Do the maths. You would have to be at risk of 170 pips slippage each and every month to make it worth your while. (Chances of this... virtually zero)

Everyone always mentions 9/11.... sorry but this was 5 years ago ..alot of guaranteed pips to give away in the meantime.

Simon

 

[Legion]

legion / pippin

controlled risk stop with no extra spread?? ummmm pull the other one.

My understanding of controlled risk stops is that they are only offered a long way away from the current price AND you have to pay a much wider spread. SB companies are no fools ... for instance the closest you can place a guaranteed stop in US equities is 10% of the entry price away (i mean ..great! 10% away!! what is the point) the only way this is going to help you is if you are the wrong way round over a profit warning.

So. 1. you have to have a position in that particular stock in the first place 2. your position is the wrong way round and 3. the market has to move more than 10%. (and you get charged for this !?) I am truly sorry but as far as I am concerned being charged virtually double spread on every opening trade is just not worth it. SB companies make an absolute fortune out of the percieved protection of 'Guaranteed Stops'. (why do you think they offer them??) or in some SB cases give smaller clients the option of only having a guaranteed stop account or nothing.

do you think that they do this out of the goodness of their hearts??

This year using our boring, ordinary, margin with stops on all positions has resulted in precisely zero BAD DEBT. Our stops policy has proved the test of time.. it allows much lower margin requirements with reasonable security without scr***ng the client on each and every bet.

In GBP/USD we quote 3 pips wide (24 hour market) our average 'day trader' in 'cable' trades 85 times a month. Guaranteed stop price is a charge of 2 pips (at least) and you can only place the stop 50 points away in most cases. Do the maths. You would have to be at risk of 170 pips slippage each and every month to make it worth your while. (Chances of this... virtually zero)

Everyone always mentions 9/11.... sorry but this was 5 years ago ..alot of guaranteed pips to give away in the meantime.

Simon

hmm well i thought they charged 3 X guarenteed stop spread as min stop distance ie if we assume that 5 pips spread for a guarenteed stop then min stop is typically 15 points, now then capital spreads as you say guarenteed stops are pretty gimmies for the bookie so you remove the gimmie and gimmie it to lots of new customers, yet set a stop of say 30 for intra session...

its glossy, its clever and like you say how many 911 come along...


put it this way how many off your clients stops exceed there normal stop dealing via your platform ? any figures on that? whats the clients average negative stop slippage ?

 

[capitalspreads]

legion

yes for currencies in normal times it is 3 times the spread so on 'cable' the controlled risk spread is 6 so the closest you can place the stop is 18... (ours is just 5 pips on a three pip spread)

before economic numbers this is widened to six times spread so the closest you can place the stop is 36 pips away... I would love to see a single client of ours claim that he was slipped more than 36 pips!! even on non farm payroll numbers. The average slippage is well below 1 pip. over 90% of stops are filled at the required level.

Simon

 

[FXNEOTRADER]

legion / pippin

controlled risk stop with no extra spread?? ummmm pull the other one.

My understanding of controlled risk stops is that they are only offered a long way away from the current price AND you have to pay a much wider spread. SB companies are no fools ... for instance the closest you can place a guaranteed stop in US equities is 10% of the entry price away (i mean ..great! 10% away!! what is the point) the only way this is going to help you is if you are the wrong way round over a profit warning.

So. 1. you have to have a position in that particular stock in the first place 2. your position is the wrong way round and 3. the market has to move more than 10%. (and you get charged for this !?) I am truly sorry but as far as I am concerned being charged virtually double spread on every opening trade is just not worth it. SB companies make an absolute fortune out of the percieved protection of 'Guaranteed Stops'. (why do you think they offer them??) or in some SB cases give smaller clients the option of only having a guaranteed stop account or nothing.

do you think that they do this out of the goodness of their hearts??

This year using our boring, ordinary, margin with stops on all positions has resulted in precisely zero BAD DEBT. Our stops policy has proved the test of time.. it allows much lower margin requirements with reasonable security without scr***ng the client on each and every bet.

In GBP/USD we quote 3 pips wide (24 hour market) our average 'day trader' in 'cable' trades 85 times a month. Guaranteed stop price is a charge of 2 pips (at least) and you can only place the stop 50 points away in most cases. Do the maths. You would have to be at risk of 170 pips slippage each and every month to make it worth your while. (Chances of this... virtually zero)

Everyone always mentions 9/11.... sorry but this was 5 years ago ..alot of guaranteed pips to give away in the meantime.

Simon

Did you just pluck 50 points from the air and decide to stick it in your cable example above?? Please could you tell me which one of your competitors insists it's that far away? I certainly haven't come accross one and you say it so vehemently that it must be true of one of them.

Most of them that i've dealt with insist it's no more than at least 20 points away which given the recent moves over econonmic figures doesnt seem too bad to me.

Over to you simon.

 

[Legion]

legion

yes for currencies in normal times it is 3 times the spread so on 'cable' the controlled risk spread is 6 so the closest you can place the stop is 18... (ours is just 5 pips on a three pip spread)

before economic numbers this is widened to six times spread so the closest you can place the stop is 36 pips away... I would love to see a single client of ours claim that he was slipped more than 36 pips!! even on non farm payroll numbers. The average slippage is well below 1 pip. over 90% of stops are filled at the required level.

Simon

Hmm thats good why not just give clients guarenteed then ? if the average is well below 1 pip, wouldnt that be worth extra clients and the cost to you is the less than 10% of stop slippage well below 1 pip?
its got client appeal surley and going off your excellent existing platform would be minimal cost. What I mean is o.k bookies could follow similar suits and do the standard IG stops but thats stale bread and cheese, I see this as a way to offer clients a bloody good open club sandwhich .

Its like you as a client can be assured of your stops being attended to ,in fact we guarentee it because we are that confident with our platform etc.

Welcome back from holiday too, lets feel your sunshine with these stops.

also 90% of stops being met good work, now if you go the guarenteed included what better reason could there be to ensure your system and those who manage it attend and work even harder to reducing the 10% even further...

just ideas

 

[Pippppin]

Simon

I was recently monitoring a US stock called Legg Mason, considering a long position. The market opened up the next day (presumably after a profit warning) 1300pts lower. Because of the leverage of spreadbetting, without a guaranteed stop that could have wiped out many accounts at a stroke (1300pts at £10 a point is of course £13000).

Stocks, in particular US stocks, are susceptible to large gaps. The analogy in the commodity futures markets is limit moves, which used to happen more than they seem to now, where you cannot close a position if you want to. Your example regarding forex is not the most applicable since forex markets are the most liquid, and not as vulnerable to price manipulation, or "insider dealing" as stocks.

IG do charge an extra spread for controlled risk bets, but if you are trading over longer time frames, as I do (weekly or monthly charts), the extra spread is often not significant in terms of potential price moves.

A client with your company could spend years building up some healthy profits, only to see them wiped out overnight by an unexpected move.

 

[laptop1]

Simon you PR is the best on T2W threads. Worldspreads should take a leaf from your book.

 

[capitalspreads]

Pippin

I have a feeling that IG only allow guaranteed stops in US equities 10% away (or that was what it used to be) my info may be slightly out of date. (my apologies to them if I am incorrect).

So in the 'Legg Mason Incident' (sounds like a thriller) the shares closed at 105.31 on day one and opened at 91.70 the next. The closest you could have set the stop would have been $10.53 away at $94.78. So in this case yes it would have saved you $3.08 but it had to gap a huge amount for the guarantee to kick in. on your £10 bet you would still lose 10,530 quid. But you would also have paid double the spread on opening the bet. (as you would do with all opening guaranteed stop bets). So even in this extreme case you can see how quickly any benefit is diluted and eroded away.

Many clients love guaranteed stops and use them all the time. We may at some time in the future look at them but I can assure you that our boring ordinary stops are far far cheaper in the long run. At the moment this is not part of our development work.

Laptop

we have our problems as well.

FXneo

you were right I did pluck the number out of the air but as you can see from my subsequent post (just before yours) I did a more accurate analysis.

Simon

 

[Pippppin]

Simon

I think there is an error in your maths. In the Legg Mason case, you are correct to say that I would have "lost" $3.08. At £10 per point that is £3080, not the figure of over £10,000 which you say I would have lost if I had a guaranteed stop 10% away