Confusion about SB practices - help!

jharvey1000

Junior member
12 0
hello everyone I am new here. I'm also new to trading, and to forums...:)

I had my first day of live trading yesterday and in general the trades seemed to go fine (I gained some, lost more!). But later I observed with a a couple of markets/trades, that no matter which way a price was trending, immediately I opened a trade, the price started going the other way. Immediately.

In the end I put 4 more trades on - longs and shorts - just to confirm, and same thing. I stopped and tried it again some hours later - same.

Is this the way spread betting works?

I would assume that this can happen in live market sitn... but could it also be due to what I would term 'shady practices' ie SB firms doing more than they should be? Could it be an anti-scalping tactic (if that's the right word).

ive asked a couple of people about this already, but nobody wants to say anything concrete, i just get tantamount to a sales/PR pitch, or avoidance.

i'm hoping people here are gong to be real and give me the low down...

I appreciate any info that anyone might have to offer


Thanks.
 

Shakone

Senior member
2,458 665
hello everyone I am new here. I'm also new to trading, and to forums...:)

I had my first day of live trading yesterday and in general the trades seemed to go fine (I gained some, lost more!). But later I observed with a a couple of markets/trades, that no matter which way a price was trending, immediately I opened a trade, the price started going the other way. Immediately.

In the end I put 4 more trades on - longs and shorts - just to confirm, and same thing. I stopped and tried it again some hours later - same.

Is this the way spread betting works?

I would assume that this can happen in live market sitn... but could it also be due to what I would term 'shady practices' ie SB firms doing more than they should be? Could it be an anti-scalping tactic (if that's the right word).

ive asked a couple of people about this already, but nobody wants to say anything concrete, i just get tantamount to a sales/PR pitch, or avoidance.

i'm hoping people here are gong to be real and give me the low down...

I appreciate any info that anyone might have to offer


Thanks.

Compare the prices you were given by the SB with the real market prices (which unless you're trading something very unusual, can be found online). If you can't find it online, post some trades here and we can check.
 
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jharvey1000

Junior member
12 0
Compare the prices you were given by the SB with the real market prices (which unless you're trading something very unusual, can be found online). If you can't find it online, post some trades here and we can check.


Thank you very much. I'm rly pleased with your advice. (y)

I will come back for help if I get stuck finding the prices - prob not till tomo tho if that's all right cos errands / chores are calling...

thanks again.

You've made my first foray into forums (!) a pleasant success...
 

mike.

Senior member
2,099 706
SB companies rely on your business,Therefore, why would they jeopardise that by rigging prices ?

They want you to trade as much as possible, they keep making money from the spread and eventually your account balance when you loose. They don't have to skew the prices, think about it.

Ive heard so many tales over the last year or so that ive been spreadbetting about skewed pricing, manipulated spikes on charts and so on. I can honestly say that i have never witnessed any of it first hand. This forum would be bursting at the seams with complaint threads if it were true.

The word " spreadbetting" is a bit like "timeshare", gets people running to the hills when mentioned. Saying that, Is there such thing as a honest broker ? Everybody is out to make money by whatever means, pushing ever closer to the what is lawful and what is not. look at the bank libor rigging case, banks trying to rip each other off. Its dog eat dog out there.. Maybe there are more Gordon Gekko's than you care to believe.

On the other hand, what better vehicle is there for trading the markets with a low budget ? A 1 pip spread on some of the major currencies, tax free, instant execution and limited slippage ?

Happy days init ?

( just my 2p worth ) :LOL:
 

kingsparkle

Junior member
10 2
hello everyone I am new here. I'm also new to trading, and to forums...:)

I had my first day of live trading yesterday and in general the trades seemed to go fine (I gained some, lost more!). But later I observed with a a couple of markets/trades, that no matter which way a price was trending, immediately I opened a trade, the price started going the other way. Immediately.

In the end I put 4 more trades on - longs and shorts - just to confirm, and same thing. I stopped and tried it again some hours later - same.

Is this the way spread betting works?

I would assume that this can happen in live market sitn... but could it also be due to what I would term 'shady practices' ie SB firms doing more than they should be? Could it be an anti-scalping tactic (if that's the right word).

ive asked a couple of people about this already, but nobody wants to say anything concrete, i just get tantamount to a sales/PR pitch, or avoidance.

i'm hoping people here are gong to be real and give me the low down...

I appreciate any info that anyone might have to offer


Thanks.

This is almost certainly nothing to do with the firms "rigging" prices and is likely down to the fact that your trade entry is poor. If you are new to trading, you shouldn't be surprised if the market seems to go immediately against you!
 
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Splitlink

Legendary member
10,850 1,233
hello everyone I am new here. I'm also new to trading, and to forums...:)

I had my first day of live trading yesterday and in general the trades seemed to go fine (I gained some, lost more!). But later I observed with a a couple of markets/trades, that no matter which way a price was trending, immediately I opened a trade, the price started going the other way. Immediately.

In the end I put 4 more trades on - longs and shorts - just to confirm, and same thing. I stopped and tried it again some hours later - same.

Is this the way spread betting works?

I would assume that this can happen in live market sitn... but could it also be due to what I would term 'shady practices' ie SB firms doing more than they should be? Could it be an anti-scalping tactic (if that's the right word).

ive asked a couple of people about this already, but nobody wants to say anything concrete, i just get tantamount to a sales/PR pitch, or avoidance.

i'm hoping people here are gong to be real and give me the low down...

I appreciate any info that anyone might have to offer


Thanks.

Those who buy on momentum have this problem. Momentum runs out and reverses. This is where very short term traders, ie those who make dozens, if not hundreds of trades per day and scalpers, make their money.

I have not caught my SB co. out, yet, and I have been trading with the same one since Day 1, over a decade ago.

That does not mean to say that one should not be watchful, though.

Watch out for thin trading over this, and other holidays. There was a very big spike, in both directions, yesterday.
 

kingsparkle

Junior member
10 2
Watch out for thin trading over this, and other holidays. There was a very big spike, in both directions, yesterday.

Yes the FOMC whipsaw was brutal.

Low liquidity spikes can be particularly nasty in Forex and the problem is compounded because of the decentralised nature of the market.
 
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Splitlink

Legendary member
10,850 1,233
If jharvey1000 was trading, yesterday, at about that time, he learned a hard lesson, but that goes on all the time, although, mostly, to a lesser extent.
 

jharvey1000

Junior member
12 0
This is almost certainly nothing to do with the firms "rigging" prices and is likely down to the fact that your trade entry is poor. If you are new to trading, you shouldn't be surprised if the market seems to go immediately against you!


Thanks for the feedback.

The more studying and live trading I've been doing, the more I see its poss.

I would like to know for sure tho (like Shakone suggested - checking the market prices, and getting the opinions of experienced traders) so I know whether to have confidence in the SB firm I'm using, or chg them.
 

jharvey1000

Junior member
12 0
Those who buy on momentum have this problem. Momentum runs out and reverses. This is where very short term traders, ie those who make dozens, if not hundreds of trades per day and scalpers, make their money.

I have not caught my SB co. out, yet, and I have been trading with the same one since Day 1, over a decade ago.

That does not mean to say that one should not be watchful, though.

Watch out for thin trading over this, and other holidays. There was a very big spike, in both directions, yesterday.


Thanks for your post, and feedback. Certainly its all helping refine my methods. Esp your advice re trading over the hols.

After riding that bucking bronco following the FOMC announcement :clap: I think I may just sit the hol season out (or maybe jst a CAREFUl little flutter..._



Any chance of saying which SB co you use? its good to know well recommended ones (u could pm me if ness)
 

Splitlink

Legendary member
10,850 1,233
I trade with Finspreads but I am not trying to push them, particularly. There are, probably, others better but since I have never tried them, I don't know and my experience is that if the service is satisfactory, stay put. Pretty much like a bank account.

In my previous post, I mentioned a spike. I hope that you checked it out because that is what I meant. The markets have made some good moves over the holiday period and I don't want to put you off, but thin trading will give markets more opportunity to clean out stops than on normal trading days and you should be aware that that can happen.
 
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