Spreadbet bias - true or false

JonnyT

Senior member
2,560 22
I remember a year or so ago that Deal4Free told me that the Dax cash price was always 16pts difference to the underlying future. Not sure wether this is true today or not.

The point is if it's fixed it's fair. It it moves to the SB companies benefit then that is bias and obvious money making tactics.

JonnyT
 

mmillar

Guest
330 5
Fair Value is a calculated number using time, volatility etc. It is not made up by D4F or any other SB company. Just watch Bloomberg TV everyday and they will tell you the S&P Fair Value. It changes on a daily basis. I think (futures experts please chip in here) that futures should expire at the 'cash' price. Futures that are far away from expiry have a big difference with the 'cash' price (because of the time value) whereas those that are about to expire have a small difference from the ‘cash’ price.

JonnyT – I think what we have been trying to get to is if D4F and the other SBs change their Fair Value numbers through the day. If they do then I would clearly agree that there is ‘bias’ - which is unfair to us. If they don’t then there is no ‘bias’. It is incorrect of D4F to tell you that the Dax cash price is ALWAYS 16 points away from the futures price because of the reasons set out above.

Madasafish – Are you saying that City and IG have exactly the same price on their Cash and Futures prices? I don’t have access to their systems. That surprises me a lot. FinSpreads have different prices between their cash and futures. On the question of ‘bias’ then I suppose it depends on your definition of ‘bias’. If you mean a ‘difference’ between the cash and futures price then there clearly is a difference. I think most of us use the word ‘bias’ to mean the SB companies are varying price independently of the market to try and screw us. We have still seen no evidence of this.
 

madasafish

Well-known member
470 5
IG and City do not have a "Cash" index.. only futures..

So wysiwyg.. daily ES is exactly based on S&P March futures with +0.5 points for spread on either side = 1 point spread in total bid vs ask.


No bias..and scrolling quotes (unlike fins) so you can deal at a price that suits you, not wait while the Fins software whirrs and takes 20 secs to give a quote which you have to accept in 3 seconds..

Know nutting about D4F...
 

mmillar

Guest
330 5
Madasafish

Sorry to contradict you :( but I have just looked at City Index's web page. They are quoting the 'Daily Wall St' at 8562-8570 and the 'March 03 Wall St' at 8542-8554. The difference between the 'Daily' (cash) and the 'March 03' (future) is the Fair Value.
 

madasafish

Well-known member
470 5
I am quoting the S&P.. as said further above, the Dow is a bastaaard index..
 

stock trader

Junior member
24 1
Interesting thead! could go on and on, however can anyone shed some light on the following:

As a matter of interest does any body know how a trader is supposed to know how and where the futures price of a stock moved during the day with the SB company? this is if the trader checks his/her trade at the end of day and finds out that the stop loss has been triggered by the SB futures price, and not the days actual traded price.
I have had this happen to me a number of times with Fins even though the stock did not trade at that price, I got stopped out, if you speak to Fins they will confirm that their futures price hit my stop loss…I just have to take their word for it as I can not check this out anywhere else…any suggestions ???

Regards

ST
 

Riz

Experienced member
1,266 5
mmillar, I have never written abusive comments about FinSpreads, neither have they alleged so or given it as the reason of the suspension, my post in that regard is `the reason they give me is that it is not good for me... `

Nothing here suggesting I have ever written abusive comments about them... once again you are out of line, I hope it is a simple misinterpreration and I dont start wondering what your motives are in writing this...

Riz
 

ChartMan

Legendary member
5,580 46
Ok let's keep it to non personals. Thanks. When it is said someone has first hand experience, take it as read it's true, especially in this delicate subject. I will repeat that we know that the SB's read this snd other BB's. No one can be expected to lay their cards on the table for all to see. If someone want's to boast about how good they are, that's another matter.
 
 
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