A few things that I wonder about...

[Technically Fundamental]

Just a few general queries here if ayone can help me out with any of them.

1) Whats the underlying feed for for IG pricing of instruments?

2) CFD trading is a contract between the broker and client so market liquidity should not factor in cfd trading - assuming you trade in large size unless IG decide to hedge your position. Is that right?

3) Bid/ask values on IG markets. Are they IG's brokerage bid/ask prices or are they derived from somewhere else?


Ill post more questions in the thread if I can think of any.

Bón.

 

[foredog]

Just a few general queries here if ayone can help me out with any of them.

1) Whats the underlying feed for for IG pricing of instruments?

(taken from other brokers statements) For FX they generally have about 5 -10 banks/ecns sending prices through so it's based on best bid/offer + Ig spread

2) CFD trading is a contract between the broker and client so market liquidity should not factor in cfd trading - assuming you trade in large size unless IG decide to hedge your position. Is that right?

They will generally offset in the market, as they are charging you a comm, so just take the profit on that and offset it on the order book so underlying size does matter(FTSE stocks)

3) Bid/ask values on IG markets. Are they IG's brokerage bid/ask prices or are they derived from somewhere else?

I think IG markets (for stocks) show underlying market prices and then you add comm on top, IG index show price including IG's comm built in



Ill post more questions in the thread if I can think of any.

Bón.

any help?

 

[Technically Fundamental]

Originally Posted by Aaronmalins
Just a few general queries here if ayone can help me out with any of them.

1) Whats the underlying feed for for IG pricing of instruments?

(taken from other brokers statements) For FX they generally have about 5 -10 banks/ecns sending prices through so it's based on best bid/offer + Ig spread

best bid/offer as in widest so IG benefit through supplying clients or best as in minimum?

2) CFD trading is a contract between the broker and client so market liquidity should not factor in cfd trading - assuming you trade in large size unless IG decide to hedge your position. Is that right?

They will generally offset in the market, as they are charging you a comm, so just take the profit on that and offset it on the order book so underlying size does matter(FTSE stocks)

offset it to a zero risk and then just take the commission?

3) Bid/ask values on IG markets. Are they IG's brokerage bid/ask prices or are they derived from somewhere else?

I think IG markets (for stocks) show underlying market prices and then you add comm on top, IG index show price including IG's comm built in

any idea on the spreads outside of stocks? Have they just created an price algo that will benefit them or are they proper market values?



Ill post more questions in the thread if I can think of any.

Bón.

 

[foredog]

best bid/offer as in widest so IG benefit through supplying clients or best as in minimum?

no, tightest, so it's competative, then they add on a small amount either side. If they're offsetting then it doesn't really matter to their p&l what the spread is as long as they can take that X% on top of the market, so it suits them for a tighter spread as it'll attract more trades.


offset it to a zero risk and then just take the commission?

Yes, risk free, money in the bank



any idea on the spreads outside of stocks? Have they just created an price algo that will benefit them or are they proper market values?

I'd guess it's just, a couple of ticks either side on the mkt spread.



Ill post more questions in the thread if I can think of any.

Bón.

That's how i'd guess most SB's pretty much work, for a pure Market maker it would be different as they would be taking all positions a the bid/offer on risk, not the 0.1 either side.

 

[Technically Fundamental]

Thanks