the blades
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Is it true the spreadbet companies skew their quotes?
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darktone
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Is it true the spreadbet companies skew their quotes?
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No! its a common misconception!:whistling
0007
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Is it true the spreadbet companies skew their quotes?
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Further to that: Does it matter if SB companies skew their quotes?
darktone
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0007
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Originally Posted by 0007 View Post
Further to that: Does it matter if SB companies skew their quotes?
Sure! But as far as I can see, the shorter your time frame the less suitable SB is. With a non-scalping philosophy then perhaps there are some "convenience" advantages - especially for low-capitalised traders?
Further to that: Does it matter if SB companies skew their quotes?
That depends on how often you try hitting the 'deal at market' button!
Sure! But as far as I can see, the shorter your time frame the less suitable SB is. With a non-scalping philosophy then perhaps there are some "convenience" advantages - especially for low-capitalised traders?
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Hi blades -
They certainly do - supply and demand. The skew can be enough to make a big difference from the TA you will see on the real chart and the TA you will see on the SB company's tick charts e.g. real FTSE100 might show a clear S/R level due to repeated tests and retracements: whereas the tick chart could have been all over the place on the same occasions, masking the real S/R level. The tick charts are also not reliable for use swing trading methodology triggered by breach of high or low of a swing day - the tick chart might not show the breach at all, or show breaches on another day.
In general Rolling or Daily Cash quotes are very near the underlying instrument, quotes for March, June etc. will be more skewed.
I suppose there might be a way to play the skew against the SB companies if they get the direction wrong, shorting high when they skew higher than the market, which then falls, and buying low when they skew lower, and the market then rises: I have a feeling this is a theoretical opportunity, not a tradable one but mabe some other users have worked out a system?
Note that the spread also widens outside real market hours.
They certainly do - supply and demand. The skew can be enough to make a big difference from the TA you will see on the real chart and the TA you will see on the SB company's tick charts e.g. real FTSE100 might show a clear S/R level due to repeated tests and retracements: whereas the tick chart could have been all over the place on the same occasions, masking the real S/R level. The tick charts are also not reliable for use swing trading methodology triggered by breach of high or low of a swing day - the tick chart might not show the breach at all, or show breaches on another day.
In general Rolling or Daily Cash quotes are very near the underlying instrument, quotes for March, June etc. will be more skewed.
I suppose there might be a way to play the skew against the SB companies if they get the direction wrong, shorting high when they skew higher than the market, which then falls, and buying low when they skew lower, and the market then rises: I have a feeling this is a theoretical opportunity, not a tradable one but mabe some other users have worked out a system?
Note that the spread also widens outside real market hours.
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