Trading with ODL in the UK

[ajharris45]

Hi

I have a uk based account with ODL using the MyBroker online software.
I can buy equities online but when I attempt to write a call on stock that I hold,the order is cancelled by the broker.
I have been told that you can only write calls by telephone but I think I am being fobbed off.
Why would there be a sell to open button if it could not be used?

Has anyone succsessfully traded in this way online with ODL?
Or ,is there another broker I could use?

 

[jontyxxxx]

Hi - I have traded options (mainly FTSE) with ODL for 3 years, but you cannot sell to open a trade online - it has to be by phone (it is ok to sell to close online, although I haven't done it). I have checked with the other LIFFE partner brokers and none allow you to sell to open online. If you find a broker that allows it, please let me know!

Best of luck

John

 

[ajharris45]

Hi John

Thanks for your reply.I am currently checking out Idealing.com. Their office says that you can write options online if you deposit the collateral in a margin account (either stock or cash).If I get an account set up and it does actually allow this ,I will let you know.
Very grateful for your input

Tony

 

[jontyxxxx]

Hi Tony

I didn't mention in my previous e-mail that I am checking out Interactive Brokers. The site claims you can write options but it is very US orientated and it may not be the case for UK options. I have got to the stage of needing to deposit $10,000 (in sterling - about £7,000), which is their minimum to open an account, but I am going to call them before I do so to check UK options can be written naked. You cannot see their system until you open an account so it is a bit of a catch 22 situation! I will let you know the outcome as I will be doing this later this week.

John

 

[maxima]

go to CBOE and use their margin calculator. you will quickly find that you cant write more than very few calls with 10K deposit. also IB have only US equties options.

 

[tradermic]

Hi

I have a uk based account with ODL using the MyBroker online software.
I can buy equities online but when I attempt to write a call on stock that I hold,the order is cancelled by the broker.
I have been told that you can only write calls by telephone but I think I am being fobbed off.
Why would there be a sell to open button if it could not be used?

Has anyone succsessfully traded in this way online with ODL?
Or ,is there another broker I could use?

Hi.

I contacted FXCM (ODL changed its name) and they said: "We can do buying & selling to open, also buying and selling to close". This is also with the myBroker interface.

Have you sold to open using FXCM?

 

[ajharris45]

Hi Tradermic

Have not tried since FXCM change, so will check it out.Also, have opened account with idealing.com and this definately allows the trades from a margin account

 

[jontyxxxx]

Hi - FXCM (ODL) do not allow sales to open online in mybroker. If they did I would have happily made my 6 sales today online and saved some money! Can I check with AJHarris whether he is certain that idealing allow this? i.e have you done it? John

 

[tradermic]

Hi - FXCM (ODL) do not allow sales to open online in mybroker.

Spreads are fine though, rite?

 

[jontyxxxx]

Spreads are fine though, rite?

Hi TraderMic - I doubt it, but I have never tried to input a spread on mybroker as ODL (FXCM) don't allow a sale to open online as far as I am aware (sale to close is fine). If you know differently, I would be very interested to hear. To be fair, I haven't re-checked this snce FXCM took ODL over, so it might have changed. - John

 

[omh]

Hi Tony

I didn't mention in my previous e-mail that I am checking out Interactive Brokers. The site claims you can write options but it is very US orientated and it may not be the case for UK options. I have got to the stage of needing to deposit $10,000 (in sterling - about £7,000), which is their minimum to open an account, but I am going to call them before I do so to check UK options can be written naked. You cannot see their system until you open an account so it is a bit of a catch 22 situation! I will let you know the outcome as I will be doing this later this week.

John

John

I have been with IB for about six months now and am very satisfied.

They DO have a pretty comprehensive list of UK options you can trade (and you can easily compare US ADR equivalents as well if you are so minded).

The site IS US-centric, but after a while fiddling about, asking questions (which are usually answered quickly and there is an online chat facility too) and listening to some of their online seminars I am getting well up to speed with what the platform can do.

Biggest "fear" with IB is that they are ruthless with margin calls. No warning - they will just close out positions. Hasn't happened to me, but something to be aware of.

omh
(No connection, just satisfied client)

 

[jontyxxxx]

Thanks Ohm - I have not yet opened my account with IB (but am at the last stage where I get reminders daily!) because their UK sales team who answer "difficult" queries like "can you sell FTSE options to open" could not answer the question definitively! After 5 telephone calls and three e-mails they finally said I could but I am still not certain as I don't think they were (they were all Americans)! As regards margin, god knows how it works - their web pages are totally opaque! ODL (FXCM) is London SPAN plus 25% and they always call and e-mail you on a margin call. Sometimes they don't bother you if its only a few thousand. I don't think they would close you out for a few days unless the market was moving fast (so as to protect you).

John

 

[jontyxxxx]

Further to my previous post, I decided to check this again and this is the online chat with FXCM:

Thank you for your patience. An operator will be with you shortly. While you are waiting, feel free to view our Online Support Forum to find fast answers to common questions.

You are now chatting with 'Geoffrey Hodgson'

Geoffrey Hodgson: Hi John, please give me a moment to review your question

John: Hello - I trade FTSE IX options and have always been told by ODL that it was not possible to sell to open online - is this still true?

Geoffrey Hodgson: Hold on please

Geoffrey Hodgson: It is true, you cannot sell to open online

John Gornall: Ok - thanks

 

[AfternoonT]

Re: UK equity options brokers

UK options brokers - commissions.

This is an old thread - but I have had to move brokers recently bcos the MF GLobal bankruptcy.

With MF GLobal, commission was 10 pound per lot( 1 lot -1000 shares). Exchange - NYSE Liffe

Does anyone have experience of the costs withIB ( interactive Brokers) or ODL(FXCM)?