spread lies

pvdelft

Newbie
1 0
I noticed that most cfd brokers advertise with small spreads but when you start trading the spread was a so called "target spread" . dfmarkets is the biggest lier. For instance they publish their low spreads but in reality they are always up to 6 times as big during market hours. (n)
 

capitalspreads

Experienced member
1,452 79
capital spreads / cfds just offer very tight fixed spreads ... in FX the EUR/USD is 1 pip 24hrs a day from sunday night to friday night and the JPY is just 0.8

we dont say 'spreads from' or 'spreads as low as' we just say 'spreads are'

not all spread betters are the same

simon
 

scose-no-doubt

Veteren member
4,630 954
Hi capitalspreads

If you're priced based on an aggregate of feeds from various data providers, how do you fix spreads when the market spread widens?

Teh Scose
 

capitalspreads

Experienced member
1,452 79
that is our risk if the underlying market goes to three pips wide we still just quote one. in reality somebody has to be the best bid or offer in the world... very occasionally it might be capital spreads !

simon
 

scose-no-doubt

Veteren member
4,630 954
So if your quoting mechanism isn't derived directly from your feed how do you derive prices?

Also, are we taking quotes or fills here?
 

capitalspreads

Experienced member
1,452 79
our quoting engines just take add best bid and offer in the market together .. divide by two and then put a spread around this price. in the case of EUR/USD add 0.5 pips and subtract 0.5 pips . you are trading with Capital Spreads and not with the underlying market liquidity

these are Capital Spreads quotes and you can trade on these prices. If you try to trade over data releases (non-farm payroll etc) then you may go to a dealer for trade confirmation but these periods only amount to 3/4 minutes in total over an entire week.

simon
 

scose-no-doubt

Veteren member
4,630 954
our quoting engines just take add best bid and offer in the market together .. divide by two and then put a spread around this price. in the case of EUR/USD add 0.5 pips and subtract 0.5 pips . you are trading with Capital Spreads and not with the underlying market liquidity

So say market spread widens to 1.5 pips and you do that then you're over the 1 pip, no?

these are Capital Spreads quotes and you can trade on these prices. If you try to trade over data releases (non-farm payroll etc) then you may go to a dealer for trade confirmation but these periods only amount to 3/4 minutes in total over an entire week.

What about slippage? Do you have slippage stats for publication?
 

Shakone

Senior member
2,458 665
If I have a limit order to buy on Euro at 1.2901, and your charting midprice goes to 1.29005 on your charts but no lower and quickly rebounds up, would I be guaranteed a fill, or not?
 

capitalspreads

Experienced member
1,452 79
shakone
our charts are from the "bid" price (not mid) so if our charts show a bid price of 1.2900 then you should be filled ..yes . assuming there is not a pricing error

scose

No... we put the spread around a single mid point number if the market was quoting (1.29057 - 1.29085) [2.8 wide] then the mid point would be 1.29071 so our price would be 1.29066-1.29076 [1 pip wide]
 

scose-no-doubt

Veteren member
4,630 954
right i get ya i muisunderstood
 
 
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