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 Post subject: Re: Question re the spread
 Post Posted: Mon Feb 20, 2012 9:48 am 
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I thought you were setting orders at:

Buy stop = 2550.7
Sell stop = 2515.8

Either way you've suffered slippage. When the market opens prices can gap up or down from the previous days close. If the price opens for the day higher than your stop buy then your order will be filled at the first tick of the day. It's a pain but something that you need to be aware of when spread betting.

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 Post subject: Re: Question re the spread
 Post Posted: Mon Feb 20, 2012 10:01 am 
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Well yes I set my actual order at 2550.7 in the hope that by adjusting for the spread my order would in fact get filled at the previous high + 0.1 pips i.e. 2547.6.

There was no market gap today, so either:

1. I have cocked up my calculations

or

2. Slippage and need to get used to it.

This must be frustrating trying to explain basics concepts to somebody. I have been using longer term methods where I have been holding 3 - 6 months so never really bothered with losing a couple of pips here or there but trying my hand at shorter term methods and getting in 3 pips late can be a pain in the ass.


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 Post subject: Re: Question re the spread
 Post Posted: Mon Feb 20, 2012 10:22 am 
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Your order will be filled at whatever price you set (assuming no slippage) so in this case it should've been executed at 2550.7. So you suffered some slippage of 0.6 points. What this means is that you should be able to sell straight away at 2547.6 as this is the buy price minus the spread, not that you buy in at the order price minus the spread, (does that make sense?)

To be honest since you were using the mid price from proRealTime it should've technically been half the spread added but I will always say to add the full spread to be on the safe side.

Out of interest who are you spread betting with? In my experience some spread betting firms seem to encounter more slippage than others.

I'm probably not the best person to help you with short term trading strategies. I prefer to use longer term strategies myself so as you say 3 points is not that big a deal, (at £1 per point that is.)

Spread betting can be very frustrating at times. One thing you also need to be aware of is that spread betting firms chart prices are indicative only.(what that basically means is they might not always tie in 100% with the underling market. Naughty I know but if you read the T&Cs it will be in there somewhere.)

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Harry,
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 Post subject: Re: Question re the spread
 Post Posted: Mon Feb 20, 2012 10:40 am 
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OK, so if the previous high was 2547.6 I could have just put that as my buy level and might have just have to deal suffered a bit of slippage?

The cause of all this was that a week ago I did exactly that and then a trade got executed that according to my chart the price got nowhere near, and of course ended up being a loser.

I usually use IG Index but as I am experimenting here with shorter term methods I am using a Capital Spreads demo account. I don't like them, the smallest fraction of the price they let you use is 0.1, i.e. you can't buy at 2547.55 you have to round to the nearest 10p, and they will only let you bet in lots of £1, i.e. you can't bet £1.50 per point. (this is on UK stocks)

I appreciate all the advice, I don't really need any help on my strategy just trying to figure out if it's viable for sb'ing. I had a trade which on the chart made 2.5:1 but when it came to the spread/slippage etc. I only ended up taking 1.5:1, can't be right.

I will persevere and if it's not working out might have to try CFD's.


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 Post subject: Re: Question re the spread
 Post Posted: Mon Feb 20, 2012 11:07 am 
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I think City Index offer fractional spread betting. I've never tried them but I think they also offer a demo account.

Oh and FYI almost all the spread betting companies I have listed in my comparison table offer CFD's as well. So if you're looking for a new company then take a look. ;)

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Harry,
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 Post subject: Re: Question re the spread
 Post Posted: Mon Feb 20, 2012 11:23 am 
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Sure, thanks. If I open any account I will be sure to do it through your site.


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