Spread betting BIG size?

[oz_kano]

Hello all,

Im wondering if anyone here spreadbets big size?

Obviously in markets like the S&P ur better off getting market access cos its so liquid, but for markets like the FTSE (try getting out of a 100 lot in that!) - would it be better to use a spreadbetting size??

ie, you might take out a 10 tick area or more whilst trying to scale out on the FTSE, whereas maybe you can hit the deal ticket in ur SB account, or have a profit target?
(unless they dont allow it for that size)

just wondering....

Cheers!
Kano

 

[oz_kano]

clearly not

 

[KillPhil08]

Usually max is 250-500 a point. It all depends on the platform, provider, whether they fill you right, whether you have to call up. etc etc etc!

 

[foredog]

The Sb still has to scale out of the position so (in theory) their bid would still reflect the underlying market.

 

[oz_kano]

thx guys, i thought sometimes they took on the risk - but i guess with that size they'd simply put it thru to the mkt

so if u had a profit target on a 1000/point FTSE trade (ie 100 lot), they'd prob put the ACTUAL 100 lot in the mkt, so itd be the same issues with getting out....im assuming....

not that im anywhere near that size! haha

 

[gle101]

thx guys, i thought sometimes they took on the risk - but i guess with that size they'd simply put it thru to the mkt

so if u had a profit target on a 1000/point FTSE trade (ie 100 lot), they'd prob put the ACTUAL 100 lot in the mkt, so itd be the same issues with getting out....im assuming....

not that im anywhere near that size! haha

Not necessarily, if there is an unbalance in the book they will hedge the position.

 

[ScoobyStoo]

SBing firms hedge in bulk across all the bets on their books in a particular market. They have some very complicated algorithms which constantly calculate their overall exposure and manage their market positions accordingly. If you are lucky and the SB firm have some punters wanting to take the flip side of your trade they won't have to go to the market and you'll probably get a fantastic fill. If they have to go to the market though you're likely to get the same fill (or worse) than if you went to the market yourself.

What sizes are you talking about?

 

[CityTrader]

I do trade ( obviously not in big denomination stocks) quite a lot in penny stocks where my bet is up to £10,000 point - obviously this is dependent on underlying liquidity, average daily trading volume, percentage of company market cap., total market cap of co, margin, and my credit worthiness. If the position can be offset, then size is not an issue...

 

[gooseman]

why on earth would someone short a penny stock on SB. upside: a few ticks. Downisde: get absolutely run over.

 

[CityTrader]

why on earth would someone short a penny stock on SB. upside: a few ticks. Downisde: get absolutely run over.

um am I missing something here? If I am, I apologise, but...
a) where did I say " short" ??
b) IF i was short, profit potential is 100% ! - you think because a company's share price is in the pennies, it can't go down anymore??? the company can still go bust.
it's actually newbie comments like that, that encourage to believe that the canon fodder is still out there.. Happy trading days..

 

[gooseman]

a) whee did I say you were short? if you have a long position (which I assumed you did) then for the SB not to cover you someone would need an opposite position in the same penny stock in the same size and therefore a "short" position. Get it now? Either way there will be a short involved-for the SB to remain delta neutral one of the clients would have to be short.

b) potential profit compared to what loss. look at the ratios nobhead. I fully understand that prices go up as well as down. I've been in the market long enough now thanks. But hey, I'm a complete newbie, what would I know?

If you're doing stuff against cash then it's a complete different kettle of fish. But again as a newbie that's too far over my head.

Wind your neck in mate.

 

[CityTrader]

a) whee did I say you were short? if you have a long position (which I assumed you did) then for the SB not to cover you someone would need an opposite position in the same penny stock in the same size and therefore a "short" position. Get it now? Either way there will be a short involved-for the SB to remain delta neutral one of the clients would have to be short.

b) potential profit compared to what loss. look at the ratios nobhead. I fully understand that prices go up as well as down. I've been in the market long enough now thanks. But hey, I'm a complete newbie, what would I know?

If you're doing stuff against cash then it's a complete different kettle of fish. But again as a newbie that's too far over my head.

Wind your neck in mate.

You replied " why on earth would someone short a penny stock on SB" As nobody else had mentioned shorting I assumed you were reffering to my post? Why would you think the SB company would not cover the position and therefore be short? If they hedged it, the end seller would probably have been an institution throwing in the towel., once again - nobody has necessarily gone short.

So my newbie friend, before you resort to name calling ( "nobhead"? good one.. must remember that - really cracked me up) I suggest you spend a little more time studying the markets, and a little less time letting your anger management get out of control.

 

[gooseman]

you know what they say about assumption.

i'll remember to study harder next time i pick up that bonus cheque mate.

 

[yellowfloyd]

Hello all,

Im wondering if anyone here spreadbets big size?

Obviously in markets like the S&P ur better off getting market access cos its so liquid, but for markets like the FTSE (try getting out of a 100 lot in that!) - would it be better to use a spreadbetting size??

ie, you might take out a 10 tick area or more whilst trying to scale out on the FTSE, whereas maybe you can hit the deal ticket in ur SB account, or have a profit target?
(unless they dont allow it for that size)

just wondering....

Cheers!
Kano

Hi Kano,
The bigger you go, the more chance you have of moving the market. If you’re talking about lots that implies futures/CFDs which is market priced and can thus move the market. With Spreadbetting the pricing is based on the underlying but ultimately the provider’s price (they earn the spread). I wouldn’t see it as a problem for the big providers to accommodate you at (100 lots/£1000 a point), but you have to bear in mind whether you are ok with the spread, the fills and potential re-quotes. Speak with them about what they can offer you. Like with tradesman, get three quotes do some online research and decide what’s best for you. Good luck trading big!