Lightning McQueen
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JasonC2 said:
Hi JasonC2
you have taken that quote out of context. I believe the discussion at that point was about hedging clients.
Apologies if i have missed your point completely :cheesy:
Don
fxmarkets
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JasonC2 said:
hmm not sure about legal issues but moral with regards to heavy PLC's using exploiting child labour and third world slave labour to enhance western/Uk shareholders bottom line? the investors?, instituitions ,where do they stand as collective in regards to human costs verses , business costs affecting cost of goods sold?
look at all that silly non sense recently about the EU holding imports up at the docks from the asian side of the world, free trade agreements set up years back, Free trade? , My Ass
On my sunday soap box....
ohh I forgot to add, these PLcs when exposed to the practices of exploiting child labour etc, announced how dreadful it all was a mistake etc. and vowed (boasted?) to get and position green with it all...
Fx.
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Windowsill
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JasonC2 said:
I wouldn't say it was Capitalspreads being exposed here. And why here....So its even more out of context.
Lightning McQueen
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JasonC2 said:
oh dear we are having a bad day aren't we
there's nothing sinister in that post as im sure loads of people would have picked up on it by now myself included (as im a bit of a conspiracy theorist on the quiet) :cheesy:
"hhhmmmmm............... let me see I have a client, who through lots of analysis or because he is just very good, makes a great deal of money from Capital Spreads every day ..week after week etc etc...(We have a policy of not closing clients just because they are winning) .......... I am sure that my investors would be pleased to know that I did absolutely nothing at all about it !!!
Most people would say that a trade covering a client position was called a 'Hedge' not a prop trade. You cannot have it both ways. I personally would say that not doing anything was a 'Prop' trade as we are then betting that the client is goint to get it wrong or that another client will trade the other way soon.
And anyway why on earth would I want to lose a client who gives us a good 'heads up' on a market? If you had a friend who consistently made money would you not want to make the same trades as him?"
Don
Lightning McQueen
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fair enough i will leave it there
Don
Don
Trader333
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JasonC2 said:
If you read the rules then you will soon see that when you sign up you have already agreed to your account being terminated for any reason seen fit. Therefore you do not have the right to take legal action if it happens.
And if you think this is bad then you should take a look at the betting companies who would close any account that was making a profit in the old days of horseracing. Spreadbetting companies are no different because they are still "Betting" companies. A couple of years ago there was a lot of discussion on T2W about SB companies and one comment in particular stayed with me which was:
In the annual report of one well know SB company it was openly stated that operating profits were less than had been forcast because clients had been more succesfull than had been anticipated but (and this is what stayed with me), it was not expected that this success would continue.
People still argue as to whether SB companies hedge or not but based on this statement you can be pretty sure they dont and are taking the other side of any bets that you place.
Personally, I dont and wont use them
Paul
RunTheNumbers
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JasonC2 said:
Which bit precisely do you have a problem with?
Well, that's good I think. It would be worrying if they did have a policy of closing accounts just because they are winning, but unless I am missing something they have a policy of not doing so.
This is clearly ironic and refers fairly obviously to the practice of hedging the trades of clients who are consistently successful. I too would be unhappy with my management if I owned a spread betting company and I found out they were not hedging certain clients positions when they knew those clients had high success rates. I don't have a problem with hedging of positions. I can't really see whats wrong with the practice.
Regards
RTN
thepoliteone
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I think a good general answer to this (and I see what both Trader333, Don H and Jason are saying) is to consider the lessons from Reminiscences... by Jesse Livermore. Once you feel things aren't going 'correctly' for whatever reason - adapt and react to it...
-TPO.
-TPO.
RunTheNumbers
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I'm not sure we're reading the same thread if you think these three people are all giving the same message.
regards
RTN
thepoliteone
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RunTheNumbers said:
I wasn't clear enough - I appreciate they're on different sides, just that I see both sides of the story as it were.
-TPO.
The interview with Alex Benjamin states that most Spreadbet companies don't bother hedging most small bets as they know we will lose in the long run. Some large bets are hedged. Basically the market stats take care of themselves with the SB companies
Windowsill
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Yes thats true.....and if you read the morning report that Simon does on Capital Spreads its interesting how customers hedge themselves, by taking opposing positions on the same instruments!! and even more fascinating what instruments they are in.
capitalspreads
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My twopennyworth
bitsteam / Jason
difficult to compare us with a bucket shop as, forgive me if i am wrong but, the entire point about bucket shops was that they cold called clients and dumped crap stock on them . Spread Betting companies merely provide the means for clients to trade in financial markets(at cheaper prices in many cases than those available in the 'real' markets). What clients do with this is entirely their own choice, we cannot recommend anything, we cannot even dissuade a client from trading even if we know he will lose money (!) because the FSA specifically states that SB companies cannot advise in any way.
On another note it is entirely at the discretion of the SB companies as to whether they allow clients to trade or not. As has been commented, frequently, on these threads some SB companies close down clients who win too much, there is nothing wrong or illegal in this no matter what Jason2 may think. Have you never heard of succssful punters being banned by bookies and having to go through third parties to get bets on?? You may fulminate all you like about the ethics but please dont go all high horsed about the facts. One of my own dealers had his account closed with F**s for effectively trading too well only the other week.
Runthenumbers seems to be on the button here by acknowledging that we are a business and should therefore be run on that basis.
cheers
Simon
bitsteam / Jason
difficult to compare us with a bucket shop as, forgive me if i am wrong but, the entire point about bucket shops was that they cold called clients and dumped crap stock on them . Spread Betting companies merely provide the means for clients to trade in financial markets(at cheaper prices in many cases than those available in the 'real' markets). What clients do with this is entirely their own choice, we cannot recommend anything, we cannot even dissuade a client from trading even if we know he will lose money (!) because the FSA specifically states that SB companies cannot advise in any way.
On another note it is entirely at the discretion of the SB companies as to whether they allow clients to trade or not. As has been commented, frequently, on these threads some SB companies close down clients who win too much, there is nothing wrong or illegal in this no matter what Jason2 may think. Have you never heard of succssful punters being banned by bookies and having to go through third parties to get bets on?? You may fulminate all you like about the ethics but please dont go all high horsed about the facts. One of my own dealers had his account closed with F**s for effectively trading too well only the other week.
Runthenumbers seems to be on the button here by acknowledging that we are a business and should therefore be run on that basis.
cheers
Simon
trendie
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".... we cannot even dissuade a client from trading even if we know he will lose money...."
"... it is entirely at the discretion of the SB companies as to whether they allow clients to trade or not. ..."
contradictory statements ?? you either cannot stop someone from trading, or you can.
perhaps what you meant to say, was
we cannot even dissuade a client from trading PARTICULARLY if we know he will lose money,
( unless he is a winner, at which point, )
it is entirely at the discretion of the SB companies as to whether they allow WINNING clients to trade or not.
( slow day for me. personally speaking, CS arent too bad, but then, I am not raking it in, just yet. )
"... it is entirely at the discretion of the SB companies as to whether they allow clients to trade or not. ..."
contradictory statements ?? you either cannot stop someone from trading, or you can.
perhaps what you meant to say, was
we cannot even dissuade a client from trading PARTICULARLY if we know he will lose money,
( unless he is a winner, at which point, )
it is entirely at the discretion of the SB companies as to whether they allow WINNING clients to trade or not.
( slow day for me. personally speaking, CS arent too bad, but then, I am not raking it in, just yet. )
