do spreadbetting firms change real market prices

davidh1819

Member
74 2
Hello i have heard some people tell me that spreadbetting prices are slighly diffrent form real market prices which can lead to people loosing money i am still new to spread betting so any experiance or advice would be great :)
 

JRP2891

Established member
752 125
Hello i have heard some people tell me that spreadbetting prices are slighly diffrent form real market prices which can lead to people loosing money i am still new to spread betting so any experiance or advice would be great :)
Spread-bet companies' prices do often differ from the real market prices marginally, however that is not why people lose money spread-betting. It's because they haven't acquired the skills to trade profitably yet. It's all too easy to blame the 'evil' spread-bet firms when they can't admit they're the reason themselves the money keeps flowing out of their account on a weekly basis.
 

arabianights

Legendary member
6,725 1,377
To the first and second approximation, no they don't. This kind of conspiracy talk is just failed "traders" looking for anyone to blame but themselves.

To the third approximation: yes, slightly. They can move their spread around (but not away from) market price to aid balancing their book, and their hedging can itself move the market. But really don't worry about this.
 
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oildaytrader

Senior member
2,806 125
To the first and second approximation, no they don't. This kind of conspiracy talk is just failed "traders" looking for anyone to blame but themselves.

To the third approximation: yes, slightly. They can move their spread around (but not away from) market price to aid balancing their book, and their hedging can itself move the market. But really don't worry about this.
Whad a load of bocks.They move their prices in the middle of night ,get right to your stop and take it out, like midnight bucket cleaning for their owner who is surreptitiously taking other side of your bet.Keep away from these crooks in suits in the city of London.
 

Martinghoul

Senior member
2,690 276
I have been using IG (relatively actively) for several years now. I have yet to see an instance of their prices being more than negligibly different from the real mkt prices.
 

tomorton

Legendary member
7,459 1,010
I have been using IG (relatively actively) for several years now. I have yet to see an instance of their prices being more than negligibly different from the real mkt prices.

.........when the underlying market is open. Overnight, I cancel my stops and orders to stop them getting hit by spikes. Deliberate manipulation of quotes or not I'm not qualified to say, just that I don't get caught that way any more.
 

Martinghoul

Senior member
2,690 276
.........when the underlying market is open. Overnight, I cancel my stops and orders to stop them getting hit by spikes. Deliberate manipulation of quotes or not I'm not qualified to say, just that I don't get caught that way any more.
True dat, but, again, to be fair to IG , in all of the products I have traded with them, they would make prices only when the underlying mkt is open. So I've never seen anything fictitious either during or outside mkt hours. I speak only of fixed income products and some FX (spot & fwd) that I have traded, nothing else.
 

Chartsy

Experienced member
1,129 82
To the first and second approximation, no they don't. This kind of conspiracy talk is just failed "traders" looking for anyone to blame but themselves.

To the third approximation: yes, slightly. They can move their spread around (but not away from) market price to aid balancing their book, and their hedging can itself move the market. But really don't worry about this.
i was thinking about this actually...but then couldnt some punter bet £1 000 000 a pip on an illiquid stock and then see the SB's hedge put him in profit?
 

davidh1819

Member
74 2
Whad a load of bocks.They move their prices in the middle of night ,get right to your stop and take it out, like midnight bucket cleaning for their owner who is surreptitiously taking other side of your bet.Keep away from these crooks in suits in the city of London.
Ok is that true or so called consiracy talk? I now have some people saying they do and they dont what are the facts just need to know for shure before i invest my money.. Besides if Spreadbetting companies do rip people off shurley the FSA Financial Services Authority can shut them down if they chase your stops??
 

arabianights

Legendary member
6,725 1,377
i was thinking about this actually...but then couldnt some punter bet £1 000 000 a pip on an illiquid stock and then see the SB's hedge put him in profit?
Yes. But he wouldn't be able to get out. So it kinda pointless.
 

arabianights

Legendary member
6,725 1,377
Ok is that true or so called consiracy talk? I now have some people saying they do and they dont what are the facts just need to know for shure before i invest my money.. Besides if Spreadbetting companies do rip people off shurley the FSA Financial Services Authority can shut them down if they chase your stops??
David, you're new to the forum so you have no way of knowing this:- but oildaytrader is a retard. When other forum members meet him on the street (fairly unlikely as most of us aren't in the habit of wandering under concrete bridges at night) then we pelt him with tomatos. Ignore anything he says.

A spread betting company can indeed quote FTSE (say) at 11pm. But think about what would happen if it manipulated it to some ludicrous value. Say it went 6000 bid tonight. What would happen? Well very simply folks with a lot of money would smash that 6000 bid and buy other indecies against it. So while SB companies have some leeway, they don't have *that* much - so the products they quote outside of trading hours will always be reasonably sensible. Indeed they cannot move more than a few ticks so long as there are firms making a price, otherwise arbitrageurs will have a go.
 

arabianights

Legendary member
6,725 1,377
No they don't.

Incidentally neither do bookies. It hasn't been tested in court for either. With regard to the latter, who are far more relevant than spread betting companies in this regard (and I think we should call it palpable error in line with industry practice) this has only been tested by IBAS; who very clearly state they're only upholding it as it was practice before bets became enforceable, in lieu of a court decision on it.

So maybe things will happen soon...
 

pboyles

Legendary member
8,072 1,301
Ok is that true or so called consiracy talk? I now have some people saying they do and they dont what are the facts just need to know for shure before i invest my money.. Besides if Spreadbetting companies do rip people off shurley the FSA Financial Services Authority can shut them down if they chase your stops??

If you are going to spreadbet you are not investing your money, you are gambling with it and there is a very high chance you will lose most of it. The vast, vast majority of people fail at spreadbetting. Mostly because they dont know what they're doing but also because the SB companies will find ways to take even more money off them by widening the spread, freezing the platform etc etc. Forget about the FSA checking up on them, they do as they please.
 

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