I don't get this - what is the correct spread?

[dberliner]

I'm posting an image from a new LIVE account with Capital Spreads (I'm new to SB but not to trading).

Maybe I've missed the whole point of tight spreads, but if they're not available when you buy and sell then what's the point?

case in point:

the 1 point spread on Dax 30 Rolling Daily ticket was 5863.0-5864.0 when I took the snapshot.

When you open an order window, it says to put the order "not between 5861.0 and 5866.0" - Isn't that actually a 5 point spread there?!
I was under the impression that with the above example I could buy at that moment at 5864 and sell at 5863.

Is this the way it goes with every SB company??

 

[PewPewPew!]

That's for setting a limit order. They don't want people making money off low pip momentum trading.

 

[foredog]

This is for a pending/stop entry order.

Eg they are 5963-4 you can only input an order 2 points either side of this but you can enter a hit the trade button and just hit the bid (once you've put your size in) and it "should trade at 63.

Same for stops...minimum x points but you can exit manually.

 

[dberliner]

Not that I agree with this, but I can accept the rationale of what you guys saying by limiting the distance for a limit targets for closing a position (which they do), but why put a wider spread on limit entries, I do not understand...

 

[PewPewPew!]

people could stick a limit order on and follow the market price by 1-2 ticks outside.

they then stick on a stop loss of 10 and a limit take profit of 1.

most cases if your limit order is entered, you will hit your take profit.

get enough punters doing this and it's hell for their system.


Just a theory.

 

[Hoggums]

dberliner - what you are looking at isn;t the spread - for your limit to get triggered at 5866 the the midprice will have to rise to 5865.5 At that point the sell/buy spread is 5865/5866 and your buy order gets triggered.

The system is preventing you placing an order at too close to the current price. There are probably technical as well as business reasons for this.

 

[dberliner]

dberliner - what you are looking at isn;t the spread - for your limit to get triggered at 5866 the the midprice will have to rise to 5865.5 At that point the sell/buy spread is 5865/5866 and your buy order gets triggered.

The system is preventing you placing an order at too close to the current price. There are probably technical as well as business reasons for this.

Just to make this clear for me ,if you can, is a limit here the same as a stop limit above market price with a real broker? As you know, when placing a limit order above current market quote with a real broker, you would get filled immediately at the better market price.

 

[foredog]

If the market is 5863-4 you can trade live by hitting the trade button and then putting your size and then hit the bid to sell or offer to buy and ...long at 5864. If you want to leave a pending order you can to sell at 5861 or lower and buy at 5866 or higher.

Eg trade at current price hit TRADE, want to leave a stoplimit then hit ORDER and place price above/below current