Odd question re FSTE 100

[romski]

Odd question re FSTE 100

Having a trade this afternoon and I notice that IGINDEX and TRADEFAIR are quoting me both 1 point spread BUT they are about 3 points apart in terms of the price ?

just wanted to ask the more experienced traders is this normal etc ??

thanks

 

[romski]

I understand its an arb, but it seems to have gone now.

So lets say there is 2 points difference that would be my arb. Is there any software that helps spot this or is a simple case of keeping your eyes open etc ?

thanks

 

[Brock Landers]

its not an arb.

 

[ordinaryguy76]

Careful with this. Consider following scenario:
igindex 1300 buy
tradefair 1305 sell
I've got an arb !
But, I didn't earn anything yet as I need to wait for the price to move.
Can you guarantee that the price will move in the same way on both platforms ?
In 2 hours' time it could be:
igindex 1350 (+50)
tradefair 1360 (-55)
WTF ? Where's my arb ???

 

[romski]

I guess the idea woudl be you need to open and close pretty much straight away.

I've noticed the prices move too sometimes it can be 4 points off then it can be spot on.

I lost half my bank the other day trading the FTSE I got it totally wrong, feel so sick about it

the FTSE rallied up 100 points to 5370 over night and then next morning was touching pretty much where it closed 5290 ish, unbelivable

 

[counter_violent]

I guess the idea woudl be you need to open and close pretty much straight away.

I've noticed the prices move too sometimes it can be 4 points off then it can be spot on.

I lost half my bank the other day trading the FTSE I got it totally wrong, feel so sick about it

the FTSE rallied up 100 points to 5370 over night and then next morning was touching pretty much where it closed 5290 ish, unbelivable

If you lost half your bank on a 100 point move, then i'd suggest you are trading way way over size. Reduce the stake and build little by little however piddling and pointless it seems, you will stay in the game much longer and learn a great deal more.

Forget about trying to arb price discrepancies, thats a complete waste of time.

 

[dc2000]

I guess the idea woudl be you need to open and close pretty much straight away.

I've noticed the prices move too sometimes it can be 4 points off then it can be spot on.

I lost half my bank the other day trading the FTSE I got it totally wrong, feel so sick about it

the FTSE rallied up 100 points to 5370 over night and then next morning was touching pretty much where it closed 5290 ish, unbelivable

no its very believable thats what the market does. you need deep pockets to trade overnight

by the way its only an arb if both settle at one common eod price

 

[Brock Landers]

the positions are not fungible; if you need to trade out, it's not an arb.

 

[romski]

If you lost half your bank on a 100 point move, then i'd suggest you are trading way way over size. Reduce the stake and build little by little however piddling and pointless it seems, you will stay in the game much longer and learn a great deal more.

Forget about trying to arb price discrepancies, thats a complete waste of time.

i know tell me about it, i was angry at something else and thought *** it 20pp on the FTSE, i was even in profit at one point. i have no idea why i did that trade

infact i do lack of disciplline, and the costs were massive now i think its down to 1 or 2pp and as you mentioned it before i have to build it back up.

i did that on poker i put 100 in and went down to about £3 and i literally scalped like crazy winning 10p sometimes and cashing out if i thought the table was too hard or i wasnt getting good hands and slowly managed to make it back up to £150 so it can be done

thanks