Spread Bet Prices

[counter_violent]

Hi

Did anyone else have problems with spread bet prices on DOW cash and DOW futures on the opening 10 mins of today,s trading ?

The platform I use was approx 50 points adrift on both.

Sent e-mail of complaint. Reply was almost laughable, it stated that Pfizers prices were not included in the index figures and that this had been factored into the spread bet prices.

Fifteen mins after the open, the two incorrect prices disappeared off my platform screen and I was advised to log back in ......... yup you guessed it ..... after logging back in the prices were spot on with the charts.

counter

 

[counter_violent]

Seems there was a genuine problem with Pfizer being suspended after reading other posts.

Ah well !!!! we live and learn .......to our cost usually .

counter

 

[TheBramble]

Forgetting the SB 'issue' for a moment - there was clearly a disparity between cash and future at the 'off'. Either you're into this and can use it profitably - or you're not.

I tend to stay out if it looks 'different'...I have much to learn...I'm sure.

 

[counter_violent]

Forgetting the SB 'issue' for a moment - there was clearly a disparity between cash and future at the 'off'. Either you're into this and can use it profitably - or you're not.

I tend to stay out if it looks 'different'...I have much to learn...I'm sure.

It seems I had a brainstorm at the outset of todays trading. As the market opened at 2.30 the platform cash and futures prices shot down as you are probably aware. The problem with my platform prices was that they broke through to the downside of 10,660 as you stated yesterday, primary support level, so I opened a short position ( as you would!!) fully expecting the price to find a new if temporary bottom.

In the few seconds it took me to realise there was a major discrepancy and to close the trade the price had moved up some 30 points much to my annoyance. After checking various charts I found no evidence that the cash price went anywhere near the 10,660 level,let alone the 10,635 bottom that the S B company quoted back to me (10,679) seems to be the correct cash opening candle bottom price.

So as you suggested I also will be steering well clear of the first min's of uncertain openings .

What do you have to learn ? Seems to me that you have come across this particular problem before, although I expect todays events are quite rare.

counter

 

[TheBramble]

The problem with my platform prices was that they broke through to the downside of 10,660 as you stated yesterday, primary support level, so I opened a short position ( as you would!!) fully expecting the price to find a new if temporary bottom.

I wouldn't have gone short even in a 'normal' market on a breakdown on anything other than 'indicative' volume - there was none.

The 'gravitation' to the expected support at 10660/70 was obvious on such low volume.

I would have been temped to go for a quick short to that level on the rally to 10710, but 50pts max (IMO) in low volume - why bother?

 

[fpreca]

i have started spread betting only a couple of weeks ago so it could be my inexpereince. however yesterday i lost my bet on pfizer - something like you happened - i shorted pfizer and was showing a 372 usd gain in the first 10 minas of trade. than the ig index platform got jammed and ta ta !

what is your experience with your spread betting company? i have threatened to close my a/c with ig .

earlier in the morning i was having a 'closed' in my uk bets and thought uk was on holiday - after half an hour you were back to work! and so were my 'live' quotes!!!

Hi

Did anyone else have problems with spread bet prices on DOW cash and DOW futures on the opening 10 mins of today,s trading ?

The platform I use was approx 50 points adrift on both.

Sent e-mail of complaint. Reply was almost laughable, it stated that Pfizers prices were not included in the index figures and that this had been factored into the spread bet prices.

Fifteen mins after the open, the two incorrect prices disappeared off my platform screen and I was advised to log back in ......... yup you guessed it ..... after logging back in the prices were spot on with the charts.

counter

 

[prisoner66]

The disparity between the spread betters platform and the actual market is often quite extreme in the first few minutes of trade. It is their way of protecting their interest until the direction of the market stabilises following the initial burn off. No point in complaining about it, you must always remember that you are trading (betting) on their platform quotes not the actual market it'self.

If you want to deal with the actual market it'self then of course use a different trading derivative, my personal strategy is to refrain from any trade in the first 20 mins of open no matter how tempting it looks.

I have been earning my living from spread betting for the past 4 years or so now and caution is a good habit to get into, the idea of an opportunity "too good to miss" is a myth and there is always another opportunity.

Dont complain.......change your strategy

Fpreca........System failures are a real hazard and can be expensive in a volatile market. All you can do is make sure your connection etc is as reliable as it possibly can be. You cant of course control their server...but FWIW, I wouldnt trade without a broadband connection and my 3 pc's. I always have a standby pc ready to log in straight away just in case...and a list of the phone dealing telephone numbers on the board in BIG numbers right in front of me. My only other comment is a friendly nudge ok...you shouldnt have assumed the market was on holiday, you should have known if it was closed or not before you even logged on.....

 

[gullible]

In addition to Pizfer problem, I believe the markets were very jittery due ti triple or may have been quadrauple witching

 

[BBB]

Well guys, I really dont want to p!ss on your fire here as I'm sure we all know my opinion on spread betting.

But some how I am feeling the HUGE urge to say 'I TOLD YOU SO!' Sad but true.

I have no wish to start another drawn out thread on the perils of spread betting vs trading for real (where of course this incident would never of happened), as I know how all the inexperienced folk will jump down my throat with all kinds of nonsense when all I have tried to do is point out the b!eeding obvious.

I saw one persons signature that said something like 'Life's to short to repeat the mistakes of others'. Shame more people dont take heed.

All the best!

 

[the blades]

Well guys, I really dont want to p!ss on your fire here as I'm sure we all know my opinion on spread betting.

But some how I am feeling the HUGE urge to say 'I TOLD YOU SO!' Sad but true.

I have no wish to start another drawn out thread on the perils of spread betting vs trading for real (where of course this incident would never of happened), as I know how all the inexperienced folk will jump down my throat with all kinds of nonsense when all I have tried to do is point out the b!eeding obvious.

I saw one persons signature that said something like 'Life's to short to repeat the mistakes of others'. Shame more people dont take heed.

All the best!

I hardly think that a blip in the quoted prices on a certain day is a proven case that SB has no merits no matter your style of trade.

You will no doubt pigeon hole me as inexperienced. However, "in my experience" I have had no problems with spread bias. I make profit, the tax on which would be greater than the comissions I pay. My positions total £150,000 long plus short and turn over at least every three months - so I'm hardly a hobby trader yet to see the error of my ways?

I am however green to other methods of trading and am keen to be enlightened. Yet often these requests are met with patronising pats on the head, or tales of spread bias that somehow, I've never come across.

One day a sesnible debate will break out, hopefully with someone who has experince in SB and has real world experience on how to better it.

UTB

 

[prisoner66]

Hey BBB.......... I like your posting, dont you just love an "I told you so" sort of guy. But then again I see you are legendary member and obviously of high experience and closed mind to deserve it

But you imply that only inexperienced persons will jump down your throat with all sorts of nonsense...when you are so clearly right and stating the obvious? Without taking note of your previous postings, I am clear that you already have a predictable dismissive closed view of spread betting. But then again spread betting's not "real" trading is it.....

But....lets be constructive shall we, for the benefit of those inexperienced nonsense talking others shall we?

There is no such thing as a particular type of "real" trading. Indeed trading offers so many different forms of making money it is anything but a real world, in the real world many of the available trading methods would probably be considered illegal (in a metaphorical sense).....selling something you dont own and profiting from it a good case perhaps .

However, spread betting is simply a means to an end, like all forms of making money from a stock market it requires specific strategies that accommodate it's underlying peculiarities. Fail to do that and of course you will lose money...fast. WHAT EVER you are trading with.

So.......there really is no issue with spread betting, if it works for you personally and you use appropriate strategies it is fine, maybe not ideal, but then again nothing is. I have a few years experience trading stocks both day, med and long term, warrants, futures and spread betting. I like spread betting and use it alongside futures..........they are my instruments of choice after using most....it works for me .

So BBB....are you one of the quiet few who simply makes a living from trading in their own way, however that may be, like me perhaps? . Or....are you constantly talking about how to trade for "real", making sweeping comparisons and judgements and telling us how right you always are and never lose...like an inexperienced one talking nonsense perhaps...and never actually do anything?..

A touch of Brawn + Boldness = Bo**cks perhaps ). But you can take a joke cant you? You're so important after all..

 

[Roberto]

caution is a good habit to get into, the idea of an opportunity "too good to miss" is a myth and there is always another opportunity ...
System failures are a real hazard and can be expensive in a volatile market. All you can do is make sure your connection etc is as reliable as it possibly can be. You cant of course control their server...but FWIW, I wouldnt trade without a broadband connection and my 3 pc's. I always have a standby pc ready to log in straight away just in case...and a list of the phone dealing telephone numbers on the board in BIG numbers right in front of me.

I completely agree with and endorse every word of this, and your other post above, by the way (except that I've been getting away with 2 PC's myself so far, I must admit).

I have been earning my living from spread betting for the past 4 years

Likewise. There are quite a lot of us here, actually. Most of our "colleagues" keep a very low profile on this subject, due entirely to the very opinionated and ill informed minority of people with extreme and prejudiced opinions about spread-betting, who are determined at all cost to Be Right and not to let little things like the facts or up-to-date information get in their way!

So be warned in advance about that, and welcome as a poster rather than a mere lurker, prisoner66. (Are you a "free man" or have I got the reference wrong?)

 

[LION63]

Roberto & Prisoner66,

How long will it take you to realise and accept that spread betting is a mug's game? You 'pretend' that you are trading when you are in fact 'gambling' and you are playing a game with a marked deck. Your New Year resolutions should be that you will no longer gamble. But you have the cheek to pretend that you have been doing this successfully and not paying any taxes to boot. Which country would allow that?

Take it from those that have 'told you so' as they know the 'truth'. We have to close those funny accounts; cease gambling; pay our taxes; put up more capital and pay commissions to those nice chaps in braces.
Then we will be considered traders and accepted into the fold.

 

[prisoner66]

Hi Roberto.......Thanks for the welcome , well normally I keep a very low profile and simply go along my own way as I see fit, whilst I read this BB only recently did I register as you can see.

But it is frustrating at times to see things which really do not encourage or develop potential "Market players" shall we call them in order to be completely unbiassed . Everyone has to start somewhere and this is certainly not an easy environment to work in at the best of times a few helpful words are good for all of us at times in what is an extremely lonely pursuit.

But...even a Prisoner has to bang the table sometimes! Yes, you have the reference just right Roberto

 

[Roberto]

How long will it take you to realise and accept that spread betting is a mug's game? You 'pretend' that you are trading when you are in fact 'gambling' and you are playing a game with a marked deck. Your New Year resolutions should be that you will no longer gamble. But you have the cheek to pretend that you have been doing this successfully and not paying any taxes to boot. Which country would allow that? Take it from those that have 'told you so' as they know the 'truth'. We have to close those funny accounts; cease gambling; pay our taxes; put up more capital and pay commissions to those nice chaps in braces. Then we will be considered traders and accepted into the fold.

As the saying goes: "Lol". Don't you start!!

 

[Roberto]

even a Prisoner has to bang the table sometimes!

That's alright, old boy; as long as you're not trying to escape.

 

[prisoner66]

Lion63....Oh come on now. Did I once mention not paying taxes, did I refer to gambling or that I advocate spread betting above all else and everyone should do it...NO of course not:. Why.....because that wouldn't be true would it.

However, your comments seem to make much more play on the word "Trader", like some magical holy grail that we must strive to be............does that mean I haven't made a living because I didn't wear a coloured blazer and stand amidst a pile of paper slips in New York....because I think maybe thats a real trader is it not?....

You didn't read and understand did you.......my comments simply said that I personally like and use spread betting and I make enough for me to live on from it. I have tried most other methods and I think I also said I traded futures didn't I?..........Oh but hell that cant be trading either can it.....because I dont actually own anything.....Damn it, I really must go out on Monday with a bag full of cash and buy Microsoft (no tip implied) from the pit....then I am a real trader.......lol.

Oh...and a country which allows tax free earnings from anything really......The Philippines, a place where I spend a fair bit of time in fact......sitting in my chair on the beach front Spread betting from my laptops.... You know something...........I have to say that if earning my living on said palm fringed beach with a cold drink and a triple set of lap tops looking at the ocean isn't "real" trading......then who wants to be a real trader anyway.....lol.

 

[prisoner66]

I would'nt do that Roberto . But no doubt I shall be "seeing you" at sometime or another. Maybe trading the other end of my beach..lol

 

[Joop]

spread bet prices

If you trade the DOW cash using spread betting.

First you need to be using the correct data, the spread bet companies follow

YM-200503-ECBOT

There price quote follows this exactley.

Joop

 

[prisoner66]

Joop.....a point worth mentioning. Often a reason for confusion when comparing quotes with the index it'self rather than the futures. But all this talk of quote bias etc that I read is all a bit misleading too, as I said you need to accomdate any "market linked" earnings method particular peculiarities within your strategy.

When all is said and done, if you strip away the actual figures. The session charts for a particular instrument will closely reflect the same patterns and movements be it the actual exchange figures a spread betting company..or indeed a futures index. So for the final time .....depending on how and on what you base your strategy will reflect in the end result......Whatever you are trading .