spreads for ftse100&250 companies

[ketank]

hello traders...

I have been looking in to spread betting ftse100-250 companies (Rolling bets) and have noticed that with finspreads the spread vary from company to company…

I have seen spreads vary from 0.5 to 5.5 (if not bigger)…..

My question is what are finspreads like when it comes to spreads of the above category and why the big gaps…..what should I be looking at?

Ketan...

 

[the blades]

hello traders...

I have been looking in to spread betting ftse100-250 companies (Rolling bets) and have noticed that with finspreads the spread vary from company to company…

I have seen spreads vary from 0.5 to 5.5 (if not bigger)…..

My question is what are finspreads like when it comes to spreads of the above category and why the big gaps…..what should I be looking at?

Ketan...

Hello Ketank,

The spread you see is the combination of the market spread (that you'd pay through a conventional broker), plus the additional spread added by the SB company (typically 0.2% ish of the shares value). The additional spread is the equivalent of the brokers commission - which will work out cheaper for smaller deals if spreadbet, and more expensive for larger deals.

The market spread for FTSE 350 companies will vary from a tiny fraction of a %, up to 1%, depending on the liquidity. It will vary for each share during the day - so it's impossible to say what the actual quote should be. The larger the company, generally the smaller the spread.

Take a look at the thread "cost of spreadbetting" where you may see the underlying structure of SB quotes - for quarterly bets. For daily's, just ignore the interest.

For info, I think you'll find CMC better for the spreads, with a bigger minimum bet.

Hope this helps.

UTB

 

[ketank]

Hello Ketank,

The spread you see is the combination of the market spread (that you'd pay through a conventional broker), plus the additional spread added by the SB company (typically 0.2% ish of the shares value). The additional spread is the equivalent of the brokers commission - which will work out cheaper for smaller deals if spreadbet, and more expensive for larger deals.

The market spread for FTSE 350 companies will vary from a tiny fraction of a %, up to 1%, depending on the liquidity. It will vary for each share during the day - so it's impossible to say what the actual quote should be. The larger the company, generally the smaller the spread.

Take a look at the thread "cost of spreadbetting" where you may see the underlying structure of SB quotes - for quarterly bets. For daily's, just ignore the interest.

For info, I think you'll find CMC better for the spreads, with a bigger minimum bet.

Hope this helps.

UTB

Thanks for the quick response made thing a bit more clear but will now look at the tread you recommended and CMC website….


At the moment I buy and sell through the traditional broker and understood the concept of SB and saw its benefits, I had a plan to SB my trades rather than conventional broker. But the problem I faced with the fluctuating spreads is it screws up my Stop loss in terms win-loose ratio…….
Have you or anyone faced this problem? Is it still worth SB over traditional buy-sell?

 

[the blades]

Thanks for the quick response made thing a bit more clear but will now look at the tread you recommended and CMC website….


At the moment I buy and sell through the traditional broker and understood the concept of SB and saw its benefits, I had a plan to SB my trades rather than conventional broker. But the problem I faced with the fluctuating spreads is it screws up my Stop loss in terms win-loose ratio…….
Have you or anyone faced this problem? Is it still worth SB over traditional buy-sell?

Ketank,

I used a conventional broker, and switched. There are no more complications - any fluctuations in the spread are the result of the market spread - so you'd have to consider this with a conventional broker anyway.

Note that with Fins, you can set your stops based on the market price.

If you're planning to hold the bets for more than a week, use the quarterlies.

Cheers,
UTB

 

[ketank]

Ketank,

Note that with Fins, you can set your stops based on the market price.

If you're planning to hold the bets for more than a week, use the quarterlies.

Cheers,
UTB

You are making a lot sense and grateful for you help, what do you mean by the above....?

I heard something about FinS using there own spread and market spread, is that right can you switch? if so how

I'm looking to keep bets open for a week or so…. When you say “quarterlies” do you mean the futures e.g. Vod - Dec as opposed to the daily rolling?

 

[the blades]

You are making a lot sense and grateful for you help, what do you mean by the above....?

I heard something about FinS using there own spread and market spread, is that right can you switch? if so how

I'm looking to keep bets open for a week or so…. When you say “quarterlies” do you mean the futures e.g. Vod - Dec as opposed to the daily rolling?

Ketank,

Wen you set your stop with Fins, you will be given the option to select "our quote" or "market price", so any variation will be sole market spread - answering your initial concern.

If you use Quarterly bets ("futures"), the price will simply be the market price at that time, plus LIBOR (about 5%), minus any dividend % due before the expiry date. The additional spread will also be greater than for daily's (about 0.7% CC 0.2%). However, daily bets will incur a finance charge of LIBOR +/- 2.5% (ish), so the longer you hold the more you pay. From memory, the cut-off is around a week - ie if you're holding for this long or more, use quarterlies. Check the exact figures with the SB company.

Does this clear it up? Keep asking.

UTB

 

[ketank]

Everything is making a bit more sense, I need to place a few penny stake bets to familiar myself with the spread and Libor charges:

I’m a right in thinking I shouldn’t be so worried about the cost of SB providing the right size and stake bets, money management and the bonus rule about being in a trade for more than a week……?

Thanks again…my brain is buzzing from research from 7.00pm, will be back 2moro.

 

[the blades]

I’m a right in thinking I shouldn’t be so worried about the cost of SB providing the right size and stake bets, money management and the bonus rule about being in a trade for more than a week……?

.

yes, you're right - don't be worried.

If you'd have bought 200 shares with a conventional broker, then place your spreadbet a £2 per point and rest assured your exposure is the same and your costs are less than via your broker , with stamp duty. If you exceed your CGT limit, then youre really laughing. Stick the money you would have spent into a high interest account (or offset a mortgage) and you're potentially saving more.

Note if you want to trade US stock, I'd then use a "conventional" broker such as IB.

Good luck,
UTB

 

[ketank]

Afternoon guys,,,,,,,

I now need help with choosing a SB broker, I currently use Finspreads….

But would be grateful for you help, these are frame work for my plan:

-Trading purely ftse100-250 companies
-Time in trade will usually be around 5 days.
-IT MUST HAVE AN AUTOMENTAED TRADING PLATFORM WITH “IF DONE ORDERS” (the only thing I like about Fins)
-Tight spread.

Be greatful with recommendations, view & experiences

 

[the blades]

Afternoon guys,,,,,,,

I now need help with choosing a SB broker, I currently use Finspreads….

But would be grateful for you help, these are frame work for my plan:

-Trading purely ftse100-250 companies
-Time in trade will usually be around 5 days.
-IT MUST HAVE AN AUTOMENTAED TRADING PLATFORM WITH “IF DONE ORDERS” (the only thing I like about Fins)
-Tight spread.

Be greatful with recommendations, view & experiences

Hello again Ketank,

The tightest spreads you'll get are almost certainly with CMC - they match the market spread almost identically for rolling bets.

As for if done orders - I don't use them but suspect they offer them - give them a call.

UTB

 

[ketank]

Hey Blades..

I just rang them, its the only thing CMC dont do as yet, but there are planing to implement this
in the first quarter of next year.

So i will trade will FinS in the mean time to familiar myself with the tools.

Blade you have been a great help! you are an asset to t2w.

 

[the blades]

Hey Blades..

I just rang them, its the only thing CMC dont do as yet, but there are planing to implement this
in the first quarter of next year.

So i will trade will FinS in the mean time to familiar myself with the tools.

Blade you have been a great help! you are an asset to t2w.

No problem Ketank.

 

[JeffC]

CMC offer If-Dones, you can also pre and post link to existing limit.

Interesting thread as I have an account with Fins but am looking at trading a bit more seriously from now on and was wondering who offered the tightest speads (CMC say they do but I have not verfied). I looked at Worldspreads but I didn't see any demo of their trading s/w on the site, but as with others if they do now offer stops then I would not consider them until they do.

Jeff

Hello again Ketank,

The tightest spreads you'll get are almost certainly with CMC - they match the market spread almost identically for rolling bets.

As for if done orders - I don't use them but suspect they offer them - give them a call.

UTB

 

[the blades]

CMC offer If-Dones, you can also pre and post link to existing limit.

Interesting thread as I have an account with Fins but am looking at trading a bit more seriously from now on and was wondering who offered the tightest speads (CMC say they do but I have not verfied). I looked at Worldspreads but I didn't see any demo of their trading s/w on the site, but as with others if they do now offer stops then I would not consider them until they do.

Jeff

Hello Jeff,

Look at the thread "cost of spreadbetting" and download the spreadsheet at the end of the thread.

It's clear (for UK stocks) that CMC offer the tightest spreads by a distance, but unlike others they don't offer a fixed % charge. So for illiquid stocks you may get a better deal with Fins. It doesn't happen too often.

Good luck,
UTB