Do spreadbet trades move the SP like buying/slling shares do?

[redt]

or is it purely shares that move the share price

as when i called IG Index to place a spreadbet on a FTSE 250 company they had to phone the market maker' to get a price and to put the trade through

so thought if even spread betting companies go through the market maker all spread betting trades must be recorded in the market

i thought the spread betting company made their own trades on their own system, they dictate the prices and the market makers are not involved

 

[Lee Shepherd]

Hi redt,

In short no. Spreadbettors are bookies. They quote prices on the underlying market only. Unless you have a CFD (contract for difference) account. It's possible they had to check the price for some reason or maybe you were dealing in a volatile period. Who knows. Best thing is to ask them directly, I've not come across this one myself. I trade with IG.

Thinking about it.....you may have called the help desk and they had to check with a dealer (at the same firm).

 

[redt]

cheers Lee,

forgot to say that it was an AIM stock which is quite illiquid

 

[Lee Shepherd]

cheers Lee,

forgot to say that it was an AIM stock which is quite illiquid

That makes sense. If its a low volume stock/market then this is very likely. Its also likely that being filled at market you may get different prices due to low volumes depending on your volume of contracts/price per pound

 

[redt]

ok cheers, thought it would be a bit unfair if spread bets moved the SP and market

 

[Lee Shepherd]

ok cheers, thought it would be a bit unfair if spread bets moved the SP and market

No probs, do your trade pro or you new? In your opinion

 

[redt]

im a uni student but have traded several times when im not studying
once i graduate i would like to work for a hedge fund, stockbroker or investment bank but more of a analyst rather than trading

 

[Lee Shepherd]

no! im in hedge end at the mo.

all i know of horndean is the **** courier service that is now yodel!

Hedge end is close. I lived a long time in Rowner - I think pronounced Rahner . Done 7 years theres before moving to Portsmouth then to Horndean, more room for your money here but without the fun of clubs, pubs and fast food.

 

[JRP2891]

What's going on here then??? All sounds very suspicious if you ask me....

 

[dc2000]

wasnt this answered here
http://www.trade2win.com/boards/general-trading-chat/133056-who-market-makers.html

it may be wise to google the plumber and city index back in 2003 I think but bear in mind there was a lot of publicity gained of it for the injured party

 

[ffsear]

SB firm will have wanted to check price and pissibly hedge any exposure also

 

[ffsear]

SB firm will have wanted to check price and possibly hedge any exposure also

 

[redt]

ok so in a nutshell SB does not affect the SP movement,

 

[FarQuinnell]

ok so in a nutshell SB does not affect the SP movement,

No, you are incorrect.

If you are trying to put a SB on an illiquid stock (or whatever), or your deal size would put the firms net exposure beyond their limits, the SB desk is just going to mirror your actions in the underlying.

 

[redt]

ok so a SB trade wont impct the market then

the market impacts the SB trade

or am i reading this all wrong?

- when i say SP movement i mean the equity SP not the SB share price