CMC NAS screen price 7 points away from requote, anyone else experienced this?

[Petelox]

Hi,

I opened a nasdaq trade with CMC, long 1344, not that big £25 per point, I tried to open another and was quoted 1351 even when the screen price was 1344, noe this was out of hours. Once the market opened 2130 hrs my trade was out of profit but then the market rose and I tried to sell at prices ranging from 1351 - 53, however I was re-quoted at 1345-46 while the price on the screen was much higher.

I kept getting requoted and tried smaller sizes of £5 per point but to no avail (note at this time globex was open and trading on the nasdaq and volume was good) So I called and was greeted by a rather rude dealer who simply stated we make the price take it or leave it, I mentioned that the price was different to that on the screen but he said tough, I pushed more on this and he simply changed the screen price while globex had not changed.

I eventually refused his quote but traded on the internet at the lower price, once I had traded he moved the trade price back up to what it should have been (no change in globex)

Hence the question is - does this sound normal and can CMC quote a worse price than the market price to advantage them while advertising a different price on the screen?

Do other spreadbetters give utterly fictitious prices in order to reduce your chances of winning and in effect make it a one way bet for them?

I'd be interested to hear peoples thoughts around the legality of this.

Thanks

 

[gle101]

Hi,

I opened a nasdaq trade with CMC, long 1344, not that big £25 per point, I tried to open another and was quoted 1351 even when the screen price was 1344, noe this was out of hours. Once the market opened 2130 hrs my trade was out of profit but then the market rose and I tried to sell at prices ranging from 1351 - 53, however I was re-quoted at 1345-46 while the price on the screen was much higher.

I kept getting requoted and tried smaller sizes of £5 per point but to no avail (note at this time globex was open and trading on the nasdaq and volume was good) So I called and was greeted by a rather rude dealer who simply stated we make the price take it or leave it, I mentioned that the price was different to that on the screen but he said tough, I pushed more on this and he simply changed the screen price while globex had not changed.

I eventually refused his quote but traded on the internet at the lower price, once I had traded he moved the trade price back up to what it should have been (no change in globex)

Hence the question is - does this sound normal and can CMC quote a worse price than the market price to advantage them while advertising a different price on the screen?

Do other spreadbetters give utterly fictitious prices in order to reduce your chances of winning and in effect make it a one way bet for them?

I'd be interested to hear peoples thoughts around the legality of this.

Thanks

Have a look at this thread.
http://www.trade2win.com/boards/spread-betting/52856-cmc-complaint-ombudsmans-responce.html

 

[Nut]

Thats an oscene scam, I have used GFT for some time now without any issues. If you search for my previous posts you will see I have in the past been critcal of SB companies but GFT have been fine.

Ask other members using GFT for their views.

Spread Betting | CFDs | Forex Trading | Currency Markets | GFT

Good luck
Nut

 

[gle101]

With a stake at £25 per point on indices you will be under special attention by some of the SB companies. Be prepared to hedge your position is my standard reply. The responsibility is yours in the end. Don't forget, that we are dealing with market makers and not the direct market access.

 

[stevespray]

Generally under the T&C's you are allowed a two way quote when using the phone. If they want to play the moved price trick then just take the other end of the price and then lay it straight off with another broker locking in a guaranteed gain. One of the spreadbet co's tried this trick with me a number of years back on some positions I'd built up on RBS. Foolishly the dealer quoted me 9p under the market price but with a 1p spread - He assumed I was closing my open bets which was my intention. I asked him to double check the price and he said the price was fine and that he could set it where he wanted. Imgine his surprise when I told him I was buying (doubling my position) instead of closing. I left it a few moments and requested another quote and he did the same again so I doubled up again and then laid 50% off with another SB Co on a narrow spread. All the time the price was moving in my favour, 2p here 5p there (this was when RBS 1600p odd!). The dealer basically gave away hundreds of pounds a time. On the third quote the penny dropped as he realised that I had around £50k on margin and could still double up again. Needless to say he sounded pretty pi$$ed.

Steve.

 

[gle101]

Generally under the T&C's you are allowed a two way quote when using the phone. If they want to play the moved price trick then just take the other end of the price and then lay it straight off with another broker locking in a guaranteed gain. One of the spreadbet co's tried this trick with me a number of years back on some positions I'd built up on RBS. Foolishly the dealer quoted me 9p under the market price but with a 1p spread - He assumed I was closing my open bets which was my intention. I asked him to double check the price and he said the price was fine and that he could set it where he wanted. Imgine his surprise when I told him I was buying (doubling my position) instead of closing. I left it a few moments and requested another quote and he did the same again so I doubled up again and then laid 50% off with another SB Co on a narrow spread. All the time the price was moving in my favour, 2p here 5p there (this was when RBS 1600p odd!). The dealer basically gave away hundreds of pounds a time. On the third quote the penny dropped as he realised that I had around £50k on margin and could still double up again. Needless to say he sounded pretty pi$$ed.

Steve.

Ha ha, nice story.

 

[Nut]

Perhaps the easiest approach would be to ring the SB Co and ask at what level dealer intervention cuts in.

Cheers
Nut

 

[gle101]

Perhaps the easiest approach would be to ring the SB Co and ask at what level dealer intervention cuts in.

Cheers
Nut

They will probably not reveal this. Or they make a statement in line of, it all depends if we can offset (hedge) the position in the real market.

 

[Nut]

The find another SB Co until one will tell you, I doubt this information would be a problem with GFT.
Cheers
Nut

 

[gle101]

The find another SB Co until one will tell you, I doubt this information would be a problem with GFT.
Cheers
Nut

I would not bet on it.