High-value Spread bets

[ukhawk80]

Does anyone have experience of placing high value spread bets using the leading SB providers. By high-value i mean placing more than £1000/point for equities.

The reason i am asking, is that I want to know how far you can push spread betting, before the "broker" simply says NO to you.

All replies welcome.

 

[Jack o'Clubs]

In my experience you start to run into problems if you go much above the NMS for the underlying. Not that I regularly bet £1000/point but do spreadbet small caps where the NMS can be quite small, and it's then that you'll get a 'reduce size' type message when you try and place your bet.

 

[ukhawk80]

In my experience you start to run into problems if you go much above the NMS for the underlying. Not that I regularly bet £1000/point but do spreadbet small caps where the NMS can be quite small, and it's then that you'll get a 'reduce size' type message when you try and place your bet.

thanks jack for the reply,

i agree with your point about the NMS. However, assuming the presence of adequate liquidity, one way of getting around NMS limitations would be to buy in packets rather than a single bundles. NMS seems to be a misnomer to some extent, volume/liquidity are so dynamic it seems odd that LSE attempts to define "normal" but hey.....

 

[Jack o'Clubs]

The problem I've found is not buying, but selling. Buying steadily above NMS in a steady market is not a big problem, but if you want to get out in a hurry on a big down day, they've got you by the short and curlies for your exit price. Although, I've had more problems with a normal stockbroker and their market maker for a stock in that kind of situation than I have had from a spreadbet firm, to be fair.

 

[ukhawk80]

i agree totally, squaring out a big position is a problem. I tried closing a trade this morning at the open, and found myself pulling outs in packets rather a single chunk.