Best Thread Capital Spreads

montmo

it generally represents each 'bid' quote made by CS . It shows the vast majority of quotes on a streaming basis but might not show every single quote.

simon
 
Thanks for the quick reply Simon. Sorry to labour this, but just to be clear:

A bid quote is a point in time where, either the price (that the client has the chance to sell** at) can change, or, it might be that it stays the same, but it could have changed at that point?

Without asking you to give away any commercial secrets :) can you tell me roughly what is driving those quotes or ticks?

I have a feeling that the meaning of a tick for an actual Forex broker, as opposed to a Spread Betting firm, is slightly different, although I can't remember now what that definition was.

[**Edited to change buy to sell]

Thanks,
 
Last edited:
the bid is the price (at that moment in time) where the client could have sold/made a down bet/gone short. in general the offer price will be a fixed spread above the bid price. Although this can be variable for single share equity markets where our price is a fixed spread 'around' the actual quote on the market (plus or minus interest rate and dividend adjustments)

the prices are driven in the main by the exchanges for the vast majority of our quoted markets. For FX the prices are driven by the quoting banks on the various FX platforms that LCG uses for liquidity and pricing information.

Aside from the FV adjustment to cash indices LCG has no input to the prices quoted on our platform.

in general 'a tick' on our FX price is the last quoted number so for GBP/USD at 1.4927 the 0.0001 is the tick. or for EUR/JPY at 120.68 the tick is 0.01

regards

Simon
 
Questions about Capital Spreads (2) - Reverse Direction Trades

Supposing you have an open "buy" trade, and you then attempt to place a new, separate "sell" trade (market order). Will this automatically close the original "buy"?

(This does not happen on some SB platforms, but I am not sure what CS's rules are).

Does it make any difference if the new trade is close to the original, or very far away from the original?

Thank you.
 
Questions about Capital Spreads (3) - Amount deducted from "Trading Resources"

Let us say I am trading EUR/GBP at £1/pip.

If I open a trade with a stop-loss of 100 pips, I would expect £100 to be deducted from my "Trading Resources". (That is how it works in at least two other SB firms I have used).

However, in practice, it seems to be quite a bit more, and I never seem to be able to predict how much it will be. I think it is usually at least £150, but probably more.

Now, I think that all FX trades in CS are "rolling dailies", and I can imagine that CS have to reserve a certain amount to cover the daily charge, but surely not as much as, what, 50%?

How can I predict how much it will be? The explanation in the user manual seems to be design to confuse ... well, it confused me, whether by accident or design.


Thanks,
 
Capitalspreads good spreads but not the best , bad execution but not the worst
 
I do not wish to be over-critical, since Simon is one of the few representatives of the SB firms who come on here and take the flak. However, I do get frustrated by several aspects of their platform. The lack of clarity in what will be deducted from one's available trading funds, as mentioned, for a start. (Makes adjusting one's stops a bit more difficult than it need be, I find, for example).

The other main problem I have is the delays you get when it "connects the the front-end". This is a level that the customer should not be exposed to ... it should all happen seemlessly, and a lot quicker. Either their server is/servers are, grossly underpowered, or the design of the system is inefficient. The net effect is an unwelcome clunkiness.

I have also had some problems just recently when deleting items from my portfolio was not working properly. I got the impression that the problem might have been load-related.

The helpdesk were sympathetic, but didn't know what the problem was, or if they did, they did not pass it on to me. Eventually it seemed to go away after multiple logoffs and logons, and reboots of my PC.

In addition, several aspects of their order placing mechanism are unsatisfactory, e.g. with a market order, not being able to type in the stop levels in the same operation as setting the buy or sell level, and not being able to see the monetary cost at the same time. It compares very unfavourably in this respect with one particular competitor that I can think of. (But their spreads are worse :) ).
 
Overnight charges eat into any SB Traders profit, and when the postion is not of set into the market this business techneque is scamming the trader.
Ever wondered why SB Firms dont like scalpers/short term intra day traders ? Its due to the extreamly high over night charges short term traders dont have to pay.
 
Yes ... I only just realised that you get charged for 3 whole nightsfor holding over the weekend ... something I will try to avoid doing in future. Fine to be charged once to cover Friday to Monday. If Sunday evening was a trading period at CS, then perhaps ok to charge again, making 2, but it isn't. FX does not start until after midnight Sunday at CS, as I understand it, so a 3 night charge is just a little bit rich.
 
charges are to do with the 'cost of carry' and are a calculation of the differences in interest rate between the two currencies. If we did not charge on a day to day basis then a client could make a trade in a futures contract and in our rolling daily contract and guarantee a profit.

We do have a 2pc charge around the base rate (which is better than nearly every other SB company) but in these days of minimal interest rates it is becoming a bigger proportion.

The margin asked for is quite simple it is always at 25pc more than the stop loss level or at the Min IMR whichever is the larger you can find the Min IMR on the 'I' icon button for each market. So if your stop loss amount is £400 we will ask for £500 margin but if the IMR on the position you had was £700 then that is what would be taken.

For example You are long £10 FTSE Rolling Daily and your stop is 100 points away. We would ask for £1250 margin. But the Minimum margin requirement for the FTSE is 30 so if your stop was just 5 points away we would still require £300 margin.

Simon
 
montmorencyt2w said:
Let us say I am trading EUR/GBP at £1/pip.

If I open a trade with a stop-loss of 100 pips, I would expect £100 to be deducted from my "Trading Resources". (That is how it works in at least two other SB firms I have used).

However, in practice, it seems to be quite a bit more, and I never seem to be able to predict how much it will be. I think it is usually at least £150, but probably more.

Now, I think that all FX trades in CS are "rolling dailies", and I can imagine that CS have to reserve a certain amount to cover the daily charge, but surely not as much as, what, 50%?

How can I predict how much it will be? The explanation in the user manual seems to be design to confuse ... well, it confused me, whether by accident or design.


Thanks,
Click to expand...


The IMR on EUR-GBP is 40 - So if your trading £1 pp then £40 will ge deducted straight away as your initial margin payment. Everytime you open a new position Capital Spreads will automatically apply a stop loss order (CGSL). Capital Spreads will also take the funds from your account to cover the total loss if this order is hit.

E.g
Buy £1 EURGBP @ 0.8900
Imr = £40
CGSL = 100 pips (0.8800) £100


SO £140 is taken from your account to cover this


If you go into "My Orders" you can ammend or delte this automatic order, after which the funds will be available for trading again.
 
Why do I get that sinking feeling of being shafted by Capital Spreads. Today, I made 10 trades on the FTSE. And each time my trade was rejected. Then when it does go through the index is moving against me. It's not that my trades are likely to cause any ripple - they vary from £1 to £10 per point. And it isn't as if the index was volatile either. Yesterday was the same.

Has anyone tried Futuresbetting.com?

emess
 
emess said:
Why do I get that sinking feeling of being shafted by Capital Spreads. Today, I made 10 trades on the FTSE. And each time my trade was rejected. Then when it does go through the index is moving against me. It's not that my trades are likely to cause any ripple - they vary from £1 to £10 per point. And it isn't as if the index was volatile either. Yesterday was the same.

Has anyone tried Futuresbetting.com?

emess
Click to expand...

Capitalspreads are the ****tiest bookie out there. Day trading with them is a mug's game.
 
FXSCALPER Have you got anything nice to say about anything?
:cheesy:

At least at this time of the year?!
:clap::LOL:
 
FXSCALPER2 said:
Happiness is overrated.
Click to expand...

Oh Man! Talk about half empty glass!Full of cobwebs more like...
Happy Xmas to everyone, and that includes you.
About empty glasses - try a couple of them full of Port, you might see life somewhat rosier, who knows...

Eduardo. :D
 
another coal for the fire govner?

"God bless everyone"
As the mobility challenged Dickensian character said as he waved his crutch:D in the air:love:
 
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