Do all SB companies close the trading on small cap companies on a new RNS?

[blimy]

Hi, im relatively new on spread betting. I have a few trades in place... a couple that will rely on news from an RNS.

I currently use SpreadEx so that I can trade on the small cap companies.

Does anyone know if they close trading on the day of a new RNS?

if so are there any that don't?

Thanks in advance.

 

[capitalspreads]

Blimy

This is a bit difficult to answer in that (in general) nobody knows if an RNS is coming out.

Historically I cannot remember ever actually closing a company over an RNS but i am sure that the dealers would probably put the stock on a dealer intervention until such time as the price action calmed down. Unfortunately small caps these days, even in normal trading conditions, have such tiny volumes/liquidity that building up or ( often more importantly) getting out of large positions can be very difficult indeed. Over an RNS it is well nigh impossible.

I know that the company you mention is quite favorable to clients interested in small caps certainly more so than Capital Spreads. So i guess you have to take the rough with the smooth.

Simon

 

[blimy]

Simon,

Thanks for that... yes SpreadEx was one of the only companies that I could find who deal with small AIM companies. This is where i'm interested, especially oil exploration. As you know the significance of a discovery or a duster in form of an RNS make a huge difference to the SP. I was hoping I wouldn't get closed out on the news (even when holding a small position). This is why I wanted clarification on the situation.

I use trade volume to indicate when an RNS is going to be logged, perhaps it would be better to trade on the rise or fall prior to close?

Thanks, Ben

 

[malaguti]

Blimy

This is a bit difficult to answer in that (in general) nobody knows if an RNS is coming out.

Historically I cannot remember ever actually closing a company over an RNS but i am sure that the dealers would probably put the stock on a dealer intervention until such time as the price action calmed down. Unfortunately small caps these days, even in normal trading conditions, have such tiny volumes/liquidity that building up or ( often more importantly) getting out of large positions can be very difficult indeed. Over an RNS it is well nigh impossible.

I know that the company you mention is quite favorable to clients interested in small caps certainly more so than Capital Spreads. So i guess you have to take the rough with the smooth.

Simon

Hi Simon, I wonder how many more clients capital spreads have won since you've been on these boards, which is certainly far longer than myself. Having a representative of the SB world I find incredibly refreshing. I've seen others now and again but none that stick around..and always rather courteous despite some trolling that you get.
I would move to capital spreads simply for the fact that if I had a question, or a gripe, I know who to come to.
Thank you for your contribution on these forums is all I'm trying to say, and if you have a business card so I can say Simon introduced me, then pm me by all means

 

[capitalspreads]

ben

trading volume on aim stocks prior to an RNS? ooohh you cynical bugger

you are probably correct... with small caps the news leakage seems extreme sometimes. Always assume somebody knows something before you do.

simon

 

[capitalspreads]

malaguti

thanks for the comment .. greatly appreciated . unfortunately i cannot give out biz cards online. but it would be nice if (on the application) that you mentioned me!


Simon

 

[blimy]

Simon,

cynical indeed! haha. In the share I have been researching for the last few months however, trading volume has increased 3 fold the day before the RNS!

I feel it might be the same for many penny shares.

Ben

 

[blimy]

correction. ... before each successive RNS