Professional gambling...

Col_Stiffler

Junior member
32 2
I've read before that professional gamblers often have difficulties with bookmakers when (if) they consistently make money, to the point where they are basically told that their business is no longer required. I understand this leads them to open many accounts with different bookmakers in an attempt to keep a lower profile.

Based on comments I've been reading re:SB companies not hedging positions (it seems the general opinion is that they once did), is it possible that this could happen if you were to make significant profits trading with them - i.e. they might simply refuse your business and close your account? Further to this, has anyone actually heard of any occurrences of this?

I ask this because the suggestion is that SB companies are simply financial bookmakers and nothing more - and bookmakers don't like people who consistently win....
 

damianoakley

Established member
542 57
This is a very valid point.

It is this very concern that has led me away from Spread Betting and into trading properly through a broker (I trade forex).

There is no getting away from the fact that spread betting companies are Bookmakers. Bookmakers by their very nature make money by weighting the odds against the punter where they can - this is their business.

I personally made the decision to trade professionally through a broker. I trade with a 1 point bigger spread, and income tax is payable just like any other business in the UK, but I prefer to know I'm trading the actual market rather than be betting against a Bookmaker.
 

JonnyT

Senior member
2,560 22
Bigger spread!

The proper spread for the EUR/USD is 1 pip.

If you are paying more then you are trading through a Forex Broker.

Forex Brokers are not proper brokers in the fact that they are not regulated and they create there own market. i.e. They are Bookmakers just like a spreadbet company.

JonnyT
 

damianoakley

Established member
542 57
I have looked at the EUR / USD in IB. The reason I currently trade on FXCM is because I would struggle to position size correctly using the Globex future (isn't the minimum size $12.50 per pip?)

You sound like you've been doing this longer than me, so I would of course be grateful of your advice.

Many Thanks
 

JonnyT

Senior member
2,560 22
Yep $12.5 per pip about £7 per pip

I guess you must be using a swing or position trading strategy then where the spread doesn't matter as much and the swings/drawdowns may be larger?

Trading the futures I risk less than $100 per day per contract.

JonnyT
 

donaldduke

Experienced member
1,665 257
They wont close your account, just make it harder for you to trade
by placing handicaps on your account, slower fills, telephone
only beting, capping your bet size etc.

They also the hope you might actually lose all your winnings at
some point, and this happens in a lot of cases, alot of people
who win in the beggining eventually blow up, therefore closing
the accounts of winners may be bad buisiness in the long run..
 

damianoakley

Established member
542 57
Jonny T

I would say that the spread size is the only part of my system that niggles me and I would change it if I could. I trade purely the EUR/USD on a 5 min chart, making around 20 trades per day.

Although my strategy, as you rightly say, is a swing trading one, I have always been aware that a 4 point spread is scandalous.

Am I right in thinking that with the Globex Future, 1 contract is $12.50 per pip, and therefore 2 contracts is $25 per pip, 10 contracts is $125 pip, etc?

I'm just making sure I understand the Globex Future fully before I dismiss it as a non-starter.

Many Thanks
 

peto

Established member
957 100
damian

Yes your understanding is correct. Commission is just under $5 per round turn (buy & sell one contract) with IB
 

JonnyT

Senior member
2,560 22
Damian,

If you are turning a profit with a 4 pip spread trading 20 times per day then you really should be trading the futures as that would add 60 pips straight to your bottom line!!!

JonnyT
 

dax

Junior member
49 1
JonnyT,

Could you shed some light.

I can't see the futures on Globex as 1 pip. Looks like 4 to me.

What's the symbol for the IB TWS patform? And, who supplies your charting?
 

al-motor

Active member
249 0
Damian,

i agree with Johnny- 4 pt spread for 20 trades per day is far too much...............

Try also looking at Oanda.com- their spread is ususlly just 2 pts ( except when reports are out)-

dax-

Eur futures on IB usually have a 1 pip spread when the mkt is officially open - i.e. from 1.20pm UK to I think 8pm


Al
 

Col_Stiffler

Junior member
32 2
I suspect not - I've checked out CFDs and it seems they do actually hedge all positions taken up with them in the market. I should add that there have been no actual reports of this behaviour from SB companies yet. Could this be perhaps, because reportedly only 3% of punters actually make a profit from spread betting? I'd hope that if it ever does happen to me, I'd have enough capital by then to take my business to a broker and open a proper dealing account!
 

Col_Stiffler

Junior member
32 2
... which is a 66% increase in successful traders ... I have no problem with that, as long as I'm one of 'em :cheesy:
 
 
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