Doe IG know which way its going??

[liam1om]

I have been using Binary bet and IG for a few months now with some success and some losses.

I was wondering is there some sort of system which shows which way the market is about to move seconds before it does.

E.g. FTSE 12pm. The FTSE is up 6 points with around 10 minutes to go and its 85 to buy the rise at 12pm. Obviously I'm thinking this is a good price. Then suddenly its now 65 to buy the rise but the FTSE is now 6.2 up!! Then about 20 seconds later the FTSE drops to 2 points up! This happens so many times where they move their price about 20 seconds before the market moves. HOW DO THEY KNOW WHICH WAY IT WILL GO?? Is there some sort of platform they use like Level 2???

I would really appreciate some info on this.

Thanks!

 

[Verno]

I am not 100% sure but would say this. Normally lunchtime has the lightest number of orders in the book so if one punter (ie binary bet) or a spread company has a big position, it is worth their while to move it.

I would add it probably only happens in close run things.

 

[Greed Is Good]

I have been using Binary bet and IG for a few months now with some success and some losses.

I was wondering is there some sort of system which shows which way the market is about to move seconds before it does.

E.g. FTSE 12pm. The FTSE is up 6 points with around 10 minutes to go and its 85 to buy the rise at 12pm. Obviously I'm thinking this is a good price. Then suddenly its now 65 to buy the rise but the FTSE is now 6.2 up!! Then about 20 seconds later the FTSE drops to 2 points up! This happens so many times where they move their price about 20 seconds before the market moves. HOW DO THEY KNOW WHICH WAY IT WILL GO?? Is there some sort of platform they use like Level 2???

I would really appreciate some info on this.

Thanks!

Reuters & Bloomberg data feeds are the only way to get the pricing the same time as IG (outside of time travel!!). If you are a serious money player then you need both but the cost is high (IRO of £500-750 per month) plus @ the moment having a live feed to NYMEX would also help!

IG delay their underlying so that you think you are buying 85 to rise as the FTSE is 6 up but it has in fact just dropped in the other direction so the reality is you are buying a dodgy position that 9/10 will be a loser. Whenever there is a market spike they nearly always delay the online interface as they have pro data feeds so it gives them a few secs advantage over the punters without. Sometimes it catches them out when it reverses but usually it will get your money.

Another tactic they still do is market make the DJI futures by giving a very optimistic underying of say +60 with a price of 85 then just before the market opens trim it back to +25 & 60 to rise so you have already lost 20-25 points before the market has even opened!! This I found out by mistake when comparing the DJI pre-market futures on Reuters to their underying and a lot of the time there is a major difference of opinion between the 2. To be fair to them sometimes it is natural market moves but most of the time IMO it is their trading strategy.

Try to think of their underlying as just a rough guide never an absolute indicator as they can alter it manually to suit themselves and sometimes do to market make depending on which traders are managing the markets that day. I have asked several times for an explanation as to what the underying is supposed to represent and they either just ignored the question or gave an ambiguous answer!

Whenever I trade with them I always check Reuters, Bloomberg & NYMEX pricing before placing any trade & then continually when the trade is open as IG also have a nasty habit of showing a static price for a few secs then suddenly rising or falling rapidly just after you have placed the trade. This again appears to be a simple tactic to capture some more easy money by offering biased pricing when they know it has already gone against the trade before it is even placed.

You need to always be aware that any SB is always going be looking @ tactics to stay ahead of their clients so you probably have odds biased against you before you even trade with them. If the market goes in your favour as it is a clear up or down day then that counteracts it but when the markets are mixed it is very hard to prosper with them & better to just watch & learn from the sidelines.

PM me if you wanna exchange experiences/tips as I am always interested to hear what/how other IG clients are doing.

 

[Tuffty]

"nasty habit of showing a static price for a few secs then suddenly rising or falling rapidly just after you have placed the trade"

Is this not due to the way they "price" binaries in that the price model they use incorporates the trade you've just put on by pushing the price in your favour (especially if it's a big trade). I thought they did this to try and encourage the opposite trade from other punters so their book always remains fairly balanced.

My assumptions could all be incorrect of course.

 

[femi73]

liam1om, the prices IG are quoting are running off futures prices, you need access to FTSE 100 futures prices when trading binaries.

 

[liam1om]

Hi all, thanks for your replies. I also use the ADVFN live Indices. I have been monitoring when the FTSE moves on ADVFN and IG and its exactly the same. The both move at the same time. What I really meant in my origional post was that IG seem to know whats about to happen literally 10-20 seconds before it moves. I have also checked out bloomberg prices and they are the same as IG most of the time.

 

[Greed Is Good]

"nasty habit of showing a static price for a few secs then suddenly rising or falling rapidly just after you have placed the trade"

Is this not due to the way they "price" binaries in that the price model they use incorporates the trade you've just put on by pushing the price in your favour (especially if it's a big trade). I thought they did this to try and encourage the opposite trade from other punters so their book always remains fairly balanced.

My assumptions could all be incorrect of course.

Perhaps I have just been unlucky then but almost everytime this has happened to me the market has then go into freefall away from my open position...

 

[Greed Is Good]

Hi all, thanks for your replies. I also use the ADVFN live Indices. I have been monitoring when the FTSE moves on ADVFN and IG and its exactly the same. The both move at the same time. What I really meant in my origional post was that IG seem to know whats about to happen literally 10-20 seconds before it moves. I have also checked out bloomberg prices and they are the same as IG most of the time.

They are probably using some advanced computer simulation with multiple predictive algorithms which would take specfic data feeds from Bloomberg & Reuters then automatically predict an outcome based on that. If you check tic for tic BB is only every in sync with Bloomberg usually around the hour mark!!! To prove this on the same screen have a live bloomberg feed & also the bb feed. Over the course of a day you will realise there is something not quite right when the market spikes I can assure you...

Think about it logically BB can only have access to the same feeds as the other financial institutions. If there were some secret feed then you would be the richest person/company in the world as only 1 employee of BB would need to call a friend... I have worked on many different trading floors & you cannot hide a program from the IT guys as everything is inventory scanned for compliance reasons. There are more than 13000+ financial co's in the world who trade on Bloomberg & Reuters (this I know as when I used to work in the square mile I had some contact with a JP Morgan executive on a project and he mentioned this estimated 13000+ number to me as JPM were trying to push a single trading/back/front office solution to the worlds major financial players).

The most likely explanation is that the time it takes BB to react & reprice is the 10-20 sec delay plus they add on a few secs as a safety net to avoid getting their fingers burnt. This combined with market making in the oppostie direction to what the market is actually doing @ the same time gives them a pretty big edge!

 

[Clement Attlee]

IG doesn't delay their underlying, which is the cash. You are looking at the cash price, they are pricing off the futures. Futures move faster than cash. That's all there is to it.

 

[SOCRATES]

Reuters & Bloomberg data feeds are the only way to get the pricing the same time as IG (outside of time travel!!). If you are a serious money player then you need both but the cost is high (IRO of £500-750 per month) plus @ the moment having a live feed to NYMEX would also help!

And, either, or.

 

[feenix]

Like somebody else said, the binary price anticipates moves in the cash index by using the futures price. As I understand it when a share price moves it takes a little while before it is fed into the cash index, but the futures traders see the share price change and immediately adjust the futures price.

 

[SOCRATES]

Like somebody else said, the binary price anticipates moves in the cash index by using the futures price. As I understand it when a share price moves it takes a little while before it is fed into the cash index, but the futures traders see the share price change and immediately adjust the futures price.

That's right, they pounce on it before you can say Jack Robinson !

 

[JohnDoe]

And, either, or.

I'll go for 'or'. As in 'Or, dont bother at all.'

What in the dickens has a news release got to do with which way the market will trade?

The market will trade in which ever direction those who own the markets want it to go in.

News reports are mostly fundamental in nature, and it is my opinion that MOST (not all) fundamentals take a while for their impact to be digested and for the market to take direction.

Rome was not built in a day - and neither are the best trends.