Why did price spike on my broker but not on the FTSE?

[et.]

Imagine you are trading £50 per point and got in at the perfect point end of wave 2 ... and then this happened.

Fortunately I was trading only 50 pence per point. If I was trading serious money I would have been annoyed because the FTSE100 does not seem to have done the same move.

Was my analysis wrong or is one of these charts (Google and Yahoo data for FTSE 100) wrong?

Edit: I was shorting and my stop, somewhere above the high, was taken out by the spike that wasn't there on the actual? FTSE 100.

 

[tomorton]

BoE interest rate announcement was at 12. FTSE down, £ up on the comments made re future rate rises.

I don't use wave analysis so I can't say your analysis on the FTSE100 was wrong. However, the index hasn't been a trend-following buy for many weeks.

 

[et.]

BoE interest rate announcement was at 12. FTSE down, £ up on the comments made re future rate rises.

I don't use wave analysis so I can't say your analysis on the FTSE100 was wrong. However, the index hasn't been a trend-following buy for many weeks.

What I meant was, why is there a wild divergence in the data between the chart that I was using and the FTSE data displayed by Google and Yahoo?

On Google and Yahoo FTSE100 data there was no spike up to an extra high.

On this chart that I was using there was.

 

[et.]

BoE interest rate announcement was at 12. FTSE down, £ up on the comments made re future rate rises.

I don't use wave analysis so I can't say your analysis on the FTSE100 was wrong. However, the index hasn't been a trend-following buy for many weeks.

Oh yes, I was shorting. Also notice the head and shoulders pattern.

 

[tomorton]

What I meant was, why is there a wild divergence in the data between the chart that I was using and the FTSE data displayed by Google and Yahoo?

On Google and Yahoo FTSE100 data there was no spike up to an extra high.

On this chart that I was using there was.

Sorry. Yes,I don't see the spike on Google or Yahoo either but it is there on my SB firm's chart also. Top is about 8pts above earlier high.

The SB firm is quite likely to have pushed out their spread just at the time of this announcement. Normally the spread is 1pt. I assume their chart prints the mid-price between their bid and their offer so to take the mid to 7398.98, they would have had to widen the spread to over 15pts. Maybe they did. Maybe your broker did likewise?

 

[et.]

Sorry. Yes,I don't see the spike on Google or Yahoo either but it is there on my SB firm's chart also. Top is about 8pts above earlier high.

Maybe they get the data from the same company?

There is a note in the bottom right of the trading screen which says 'indicative prices' but you would think by that they would mean being out by 0.1 - 1 point, not 10 points.

Spike measures 14.8.

The SB firm is quite likely to have pushed out their spread just at the time of this announcement. Normally the spread is 1pt. I assume their chart prints the mid-price between their bid and their offer so to take the mid to 7398.98, they would have had to widen the spread to over 15pts. Maybe they did. Maybe your broker did likewise?

What do you mean by the spread? The spread I entered in at was 1pt, and why would changing my spread make the price for everyone spike up?

Here's the 10 second data

Even have 1 second data

That's amazing. How can anyone have traded that, creating those gaps, wicks etc?

 

[tomorton]

I don't understand it though wish I could advise.

I don't trade intra-day so I don't have to understand and manage these sorts of risks.
But to be blunt, you do......

 

[EnlightenedJoe]

How can anyone have traded that, creating those gaps, wicks etc?

Someone who understands shops and markets should be able to trade that fine. Now that you have more idea on how it works, maybe you will do better next time.

People seem to be too scared to mention it now, I'll do it for them. The shop is SFA regulated so they are legit. Everything they do are legit.

 

[et.]

Someone who understands shops and markets should be able to trade that fine. Now that you have more idea on how it works, maybe you will do better next time.

That last chart is the one second time frame. Nobody trades at the one second time frame.

Only a computer program can trade that fast. What the one second timeframe screen cap suggests is that this is real data rather than a sudden jump up.

BUT! If it is real data then why did this not happen on the presumably official data that is shown on Google and Yahoo UK100 charts? Surely the market data should be identical - it normally is.

This spike comes from a data provider who (likely) provides data to multiple SB firms.

The SB firm might not be directly responsible for the spike in price, whatever the cause of it was.

 

[EnlightenedJoe]

SB shops don't use futures prices that google/yahoo show. SB prices are loosely based on the futures price.

 

[et.]

SB shops don't use futures prices that google/yahoo show. SB prices are loosely based on the futures price.

What does that mean?

Google calls its data "INDEXFTSE real-time data"
Intra-day data may be provided by Interactive Data Real-Time Services, Inc.
INDEXFTSE FTSE Indexes Realtime

Yahoo uses delayed price. Why use futures prices if your prices are delayed? Might as well use the real price.

 

[EnlightenedJoe]

It means shop prices needn't correlate exactly with futures prices.

 

[et.]

SB shops don't use futures prices that google/yahoo show. SB prices are loosely based on the futures price.

You contradict yourself in two sentences - are you saying SB firms use futures prices? Or that Google and Yahoo use futures prices? Where do Google and Yahoo say they use futures prices?

 

[EnlightenedJoe]

SB shops don't use futures prices

futures prices that google/yahoo show

 

[et.]

SB shops don't use futures prices

futures prices that google/yahoo show

Thanks - but how do you know these are futures prices on Google and Yahoo, not the real price? Yahoo logs the prices in an archive. Doesn't tell you they aren't the real price. You are given to believe that they are the actual price.

My SB firm has a UK100 futures for September and December. The September data looks identical to the regular UK100, with the price spike. If Google and Yahoo use this futures data why don't they have the price spike?

At 14.04-14.05 on the December there is a 100+ point price spike that is not present on any other chart but 'flash crashes' and rises are a thing with algorithmic trading. What I'm questioning is the discrepancy between the data that the SB firms receive and the data received by Google and Yahoo.

 

[EnlightenedJoe]

SB shops are gambling establishments. They don't do futures. They offer bettings products that resemble futures.

Yahoo/google show the futures price traded on a securities exchange. If you want to trade the futures, go ask a bank. But they might call the police if you tell them to do 50p/point.

 

[kalott]

it took some volume to take out your stop

1D

https://www.barchart.com/futures/quotes/XU17/interactive-chart

 

[et.]

it took some volume to take out your stop

1D

https://www.barchart.com/futures/quotes/XU17/interactive-chart

Thank you for this, it shows the spike.

And the link. Always wanted a volume chart.

 

[et.]

SB shops are gambling establishments. They don't do futures. They offer bettings products that resemble futures.

Yahoo/google show the futures price traded on a securities exchange. If you want to trade the futures, go ask a bank. But they might call the police if you tell them to do 50p/point.

Okay thanks.

50 pence per point is the sane way to lose money learning to trade. It still hurts to lose so it's experience.

Getting better but right now constantly mistaking end of Elliot wave 3 for the reverse. The spike up there I now understand was wave 5.

BTW I consider tomorrow to be an up-day on the FTSE- assuming that I've not made that wave 5 mistake again....

 

[counter_violent]

Okay thanks.

50 pence per point is the sane way to lose money learning to trade. It still hurts to lose so it's experience.

Getting better but right now constantly mistaking end of Elliot wave 3 for the reverse. The spike up there I now understand was wave 5.

BTW I consider tomorrow to be an up-day on the FTSE- assuming that I've not made that wave 5 mistake again....

Please don't make the mistake of assuming that the ftse will go up tomorrow.
The big news today concerning gbp clearly shows that trading sentiment favours strengthening of gbp. This being the case, it is highly likely that the ftse will go sideways to lower but not higher. As long as the gbp gains in strength, then expect the ftse to do the opposite in the short term. Approx 10 times the ftse is testing support. If it does break, it will be to the downside, likely target 7,100