taking advantage of delayed spread bet feed

[MajorDutch]

Hi

Just been reading 'beat the forex dealer' and it talks about making some cheeky profit from the SB's, this is not a suggestion for a strategy but just a bit of fun. The basic idea is to open up 2 SB accounts and put the prices side by side in your screen. You then identify a SB broker which has slightly delayed prices immediately after news releases. This is the time the SB's are vulnerable particularly on the fixed spread SB's as they have to offer (well display it anyway) a price whilst the interbank market simply widens their spread to manage the risk.

We all know the SB's use dealer intervention / requotes to try to protect themselves during this time, but if they will let you take a trade and their price is slightly delayed is it possible to make a quick 10-20 pips?

If you manage to do it, the SB may reverse the trade or try to close you account.

Has anyone managed to use this method?

 

[pboyles]

I think the following sentence is the most relevant. Someone was complaining the other day about a trade being executed 63 points away from the displayed price.


SB's as they have to offer (well display it anyway) a price

 

[MajorDutch]

I think the following sentence is the most relevant. Someone was complaining the other day about a trade being executed 63 points away from the displayed price.


SB's as they have to offer (well display it anyway) a price

I am guessing you have read 'beat the forex dealer pdf' , it really is an eye opener.

 

[pboyles]

I don't think you can beat the forex dealer, except with a large stick, but I'm guessing you mean financially.

 

[maxima]

what is eye opener dutch? that people you are trying to steal from fight back?

 

[brettus]

Seems a bit dangerous, specially if you hit it too late and then it's pending pending pending. Accepted and the market has fallen 10 ticks against you. I wouldn't try it to be honest, because the odd you try it you will get screwed. I tried it once, with a stop and i got filled 120 points lower and stopped out at 100 points lower. Won't try that again.