ProSpreads, Spread Vs DMA conflict?

Where does this hedging practice leave Level2 data feed? Are the intenal hedged positions reflected in the market or is the Level2 a reflectoin of the internally hedges positions only? This is only one consequence of the lack of clarity.
Saying that, there is nothing wrong in being a MM, providing the integrity of a price structure is not compromised and the orders are executed with speed. The general experience is that Pro are fast on execution, and after the 24 hrs trading is introduced they shall provide even a greater service for which indeed traders pay with spread. We do not mind spread, be it what it is, but nobody likes slippage and delays in execution.
Anyway, there is a well spotted conflict wheather it is reall or possible. Pro has not addressed it on this thread. Unless they do, one will treat them according to ones subjective opinion, since there is no more to go by.
littleluca said:
Maybe they got bigger!!! Originally maybe it made sense.... now maybe they are trading so many contracts they can offset a lot internally... It doesn't matter to me, what matters is where they choose to profit!! Not at my expense! Is my only requirement!
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2be said:
Where does this hedging practice leave Level2 data feed? Are the intenal hedged positions reflected in the market or is the Level2 a reflectoin of the internally hedges positions only? This is only one consequence of the lack of clarity.
Saying that, there is nothing wrong in being a MM, providing the integrity of a price structure is not compromised and the orders are executed with speed. The general experience is that Pro are fast on execution, and after the 24 hrs trading is introduced they shall provide even a greater service for which indeed traders pay with spread. We do not mind spread, be it what it is, but nobody likes slippage and delays in execution.
Anyway, there is a well spotted conflict wheather it is reall or possible. Pro has not addressed it on this thread. Unless they do, one will treat them according to ones subjective opinion, since there is no more to go by.
Click to expand...

As was pointed out earlier on this thread, trades won't show on Level 2 if they don't exist in the real market. It follows that any slippage won't be a true reflection of what might have happened with DMA. Possibly they introduce 'designer slippage' (ie, slip as much as they think they can get away with) when the markets move quickly, as with other SB companies?
 
People who are not bothered about this because you're still getting filled at the price you wanted are missing the point.

It seems some orders are sent direct to the exchange and others aren't (as evidenced by the screen print posted earlier in the thread) this is rather worrying - it would indicate that your supposed limit order is actually held on their platform and presumably 'filled' internally when the price moves against you. You're potentially missing out on any advantages of having an early queue position and are also potentially going to miss getting filled in some situations.

The only way I'd be happy with this internal filling of orders would be if they structured it to give clients better (not worse) execution. Simplistic example: Client A places a limit order at the bid, order is routed direct to the exchange(Client A is sitting at the back of the queue), Client B sells at market - Client A's order is pulled from the exchange and matched with Client B's order. Client B gets filled as per his order, Client A gets filled faster than he should have and the broker gets more in commission as they didn't pay clearing fees.
 
FBet said:
Has anybody registered for the ProSpreads training day.?

Free Financial Spread Betting Demo Account|ProSpreads
Click to expand...

I see that our Trader Training Day has been mentioned; this is open to all, although we are limited to 25 places. The Training Day is a great opportunity for you to see just how good the ProSpreads platform is, with your own trading station, while being monitored by a professional trader. If you are interested in attending just let us know.
 
Could you explain what the background screenie is (As looks like excel to me)
Why don't you phone them up and ask them?
Or is that not your account?
Ahhhh . . . suspect not as that's a Dec 2009 contract in the jpg you've posted!

Random internet loony posts random pic on internet forum
In other news, water is wet.
 
A Dashing Blade said:
Could you explain what the background screenie is (As looks like excel to me)
Why don't you phone them up and ask them?
Or is that not your account?
Ahhhh . . . suspect not as that's a Dec 2009 contract in the jpg you've posted!

Random internet loony posts random pic on internet forum
In other news, water is wet.
Click to expand...

It was taken from a post here if you bothered to look and was never answered just like my post - now go and play with your £1pp positions and leave the real stuff to us who don't live here like you do.
 
Last edited by a moderator:
Truth Seeker said:
It was taken from a post here if you bothered to look . . .
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Then why not provide a link to the post in question rather than a random jpg on a web-host?

Truth Seeker said:
now go and play with your £1pp positions and leave the real stuff to us who don't live here like you do.
Click to expand...

Random internet loony makes intimidating post from the safety of his keyboard . . . Bless . . . :D
 
Vasco da Banana said:
Seems fair enough as long as they don't claim to be truly DMA. If you want that you just have to have a proper futures account.
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Yes I agree, this is not trading the Futures, but still it is very close. My biggest complain against Prospreads is the lack of features on the platform, no auto stop loss has been a real turn off for me, at least on my side. Otherwise I might try them out if they introduce auto stop loss.
 
gle101 said:
Yes I agree, this is not trading the Futures, but still it is very close. My biggest complain against Prospreads is the lack of features on the platform, no auto stop loss has been a real turn off for me, at least on my side. Otherwise I might try them out if they introduce auto stop loss.
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Fast execution not much help with such wide spreads.
 
Vasco da Banana said:
Fast execution not much help with such wide spreads.
Click to expand...

gle101 said:
Yes on the Dow it is quite wide, but not on the DAX.
Click to expand...

If you're using them to trade an exchange traded product then the quote you see is exactly the same as that on the exchange (confirmed by personal examination against Bloomberg and Reuters)

Not sure how you can complain about "wide spreads" given this fact.
 
A Dashing Blade said:
If you're using them to trade an exchange traded product then the quote you see is exactly the same as that on the exchange (confirmed by personal examination against Bloomberg and Reuters)

Not sure how you can complain about "wide spreads" given this fact.
Click to expand...
I guess you have to include the commission. Last time I checked the Dow was 3 points spread (commission included). I do not trade live with them so please inform me if I missed something.
 
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