Have you been banned by an SB?

[mma]

sorry didn't see this , but a very interesting point :

* and i bet there are a lot of failed traders working in spreadbetting companies who get themselves into a position where they get the chance to do a Nick Leeson on the company *

I have long know this to be the case , I persoanally know many in the industry who could fit the bill.

stupid really , why take market risk when you are on 50k plus bonus .


mma's little note :

one day a BB may pop up that doesn't censor , what will happen then ?

 

[boy]

blairlogie,

name the 40k a month'er!

 

[rglenn]

Spread betting companies I think you will find close online betting with the instruments that are volatile i.e costing them money and ask that you phone them instead.

Which means of course your entry won't be no where near as good by the time you get through to them and go through the palavour of telling them what instruments you are trading on etc.

I think they do this to frustrate any further trading especially when the markets are trending strongly.

They have become very skilled in trading manipulation. We need to be more shrewd to play them at their own game!

 

[stevet]

rglenn

if you want to beat a spreadbetting company - just dont give them your money - use electronically traded futures for indexes and whatever works for anything else - thats how they hedge and still make a cut - so why not go to the source

 

[neil]

Oh No

Thats it Stevet - give the game away.

Next we will have people going to currency futures with the likes of Interactive brokers for a one point spread instead of the usual five !!

How are the poor spread bet companies supposed to make money if people keep mentioning "direct access."

 

[fudgestain]

I think that if SB firms frustrate the trading of a profitable client or otherwise stop or hamper his ability to trade with them (here I will assume that the relevant market is open for the SB firm to hedge in) then they should be shut down by the FSA. And traders should ask the FSA to do that.

Also it must be in breach of the trade descriptions legislation unless offending SB firms make it clear that they will only take business providing clients lose!

You can say that the FSA is completely useless .. but they do act on complaints and any FSA registered business hates the FSA on their tail as the result of any allegations/accusations made against such businesses.

 

[stevet]

most people playing the markets lose anyway - spreadbetting companies just make it a bit easier to lose

pity the poor fund managers who dont go through spreadbetting companies - think how hard its been for them to **** away people's hard earned money - but then again they had a safe and proven strategy - so i guess with one of those - you just have to work that bit harder to lose - but they have proven that they had the skill to do it!!!

the xxxx begins with a p and ends with an s - no prizes though for getting it right - unless you are a fund manager - and then i guess things must be looking up if you got one thing right!

 

[adrianallen99]

Ive just opened a new SB account, and I keep getting calls about when am I going to deposit money and make my first trade.

Some SB firms offer advice, isn't this a conflict of interest?

 

[stevet]

whatever advice they would offer is probably not going to be trading advice - more likely just how to use their interface or how the bets work etc - but they are not gonna recommend bets - mainly because they dont know what a good bet would be anyway - or they would be trading and not working for spreadbeting companies - a lot of senior people in spreadbetting companies are failed traders

 

[dazzam]

That is not deemed as advice more a customer service issue i.e. I would have expected the call to ask if you are ok with everything and if you wanted anything explaining.

As Stevet says they are certainly not allowed to recommend bets unless they are authorised to do so, but again who would want to listen to them anyway.

adrianallen As a matter of interest which company was it? PM me if you do not want to say on boards

 

[Skimbleshanks]

I would suggest the reason that you (and anyone else) is getting those calls is because it makes basic financial sense to the SB company.

The sooner you fund your account, the sooner you will start to trade and lose money which ends up in their pockets. So that's why they're chasing you.

Just take your time, and when you're ready, you're ready.

And welcome to T2W by the way!

 

[alchy]

The guy who took the job fooled all of us!

Yep that guy earns 80k a year before tax.
Thats Guaranteed income.

Meanwhile he just closed his account with the company is working for an opened another with another firm and earns 40k a month as well on top

Not only that he now gets the insider information from the company he is working for (which is why he took the job! why don't i get paid 80k a year for receiving insider information) and actually making 80k/Month from SB's.

Thats 12x80k + 80k = Loads.. he's fooled all of us

 

[stevet]

the only inside information you are gonna get working at a spreadbetting company is the best pub in the area

 

[neil]

the only inside information you are gonna get working at a spreadbetting company is the best pub in the area

:cheesy:

 

[neil]

Just a thought... if you're an extremely profitable trader, why would a SB company make things harder for you? They know your success rate, and positions, so surely just could just "copy" your trades (using even bigger positions) and make even more money by doing so?
Comments welcome.

Probably for the same reason a Bookmaker would not copy a
" winning "punter.

Their game is to reduce risk - they have enough mugs to guarantee a profit, virtually risk free. Firms have even admitted they don't cover all spread bets, probably for that reason.

 

[stevet]

i doubt if an SB company would make it harder for a succesful trader - but i also doubt they have ever had to deal with that eventuality

but if someone starts betting large amounts ( easiest way to become a milllionaire is start with 10 million), they then have to hedge those positions or at the minimum whoever is in charge of the trading book needs to know this positon is going to come onto the book and they also need to check liquidity of the contract to make sure they have got their price right realitive to larger exposure

 

[Kilnside]

stevet

Often wondered about liquidity with major indices. Have you a feel for at what stake level delays in SB fill on the Dow (say) start to come in? Not a problem for me at this time by the way!!

 

[delboy trotter]

I think as long as the spread firms can hedge the position in the open market, then they will accommodate all comers. The problem arises if they can not lay off the trades or you are arbing them or trading the markets out of hours. A potential weakness (if you like sticking to a screen for hours) is in the latest Binary Bets that are springing up, if client money or a fast market move their prices out of line with true odds. You can then hedge on the open markets.

I have had my sports spread accounts severely curtailed in the past (but never closed) for winning regularly (technical arbs and hedging). They usually sort you out by removing your internet access and making you phone in your bets. Then they alter the prices and reduce your stakes until it is no longer worth your while bothering. They are after all just bookmakers. The only place nowadays that you can get a decent sports bet is on the exchanges such as Betfair etc.

 

[Kilnside]

Thanks Delboy

 

[stevet]

Kilnside

i think they probably take a close look at any bet which is eqivelant to betting the equivelant of say 10pts in the dow futures or a pt in the s&p futures etc

firstly as this is the minimum level they could hedge one to one - and also as anyone betting the size of a futures contract is going to stand out as someone who maybe have found an error with their system and is arbing them with futures - or at least testing the water

but liquidity changes by the second - and does have a key effect as they would not quote you if the liquidity is not there - but seconds count when it comes to liquidity

the dow is a complex contract to discuss as the spreadbetting companies dont use the dow as the underlying for the dow in a way that most spreadbettors would understand

the dow is used by most learners and those who have never moved on from learning simply since they can get their heads round the point movement - whereas the s&p with its quarter point moves is more confusing for them

but the king of all indexes is the s&p and is where most real trading is done