Simon addresses Capital Spreads Questions

Angus Answers General Spread Betting Questions:  Primary Index : Page 1 : Page 2

Simon Answers Responds to Capital Spreads Questions:
  Page 3 : Page 4 : Page 5 : Page 6 : Page 7

Q.
How does your company compute the spread?
Q.
How do your spreads compare to normal dealing and Direct Market Access?
Q.
I think the computer generated stop loss is a good thing but why does it have to be eons away from the entry price?
Q.
All clients must have the available resources on their account to cover the risk up to the stop loss plus 20%...why the extra 20%?
Q.
Can you please explain what the OCO order does?
Q.
Simon, will trailing stops become a feature on your platform any time soon?
Q.
What system do you use to adjust a share price to reflect the dividend?
Q.
Can you tell me why I only get 80% of a dividend if long and debited 100% if short when the payout from a brokerage firm is 90%?
Q.
If I am long a UK rolling daily bet why am I not entitled to 90% of the dividends (as with CFDs)?
Q.
Simon - thanks for getting back but does getting 80% back mean I am still liable for 20% if I were a higher rate tax payer, any credit being classed as income?
Q.
It is my understanding that Capital Spreads will not give accounts to persons earning less than £5000 a year...
Q.
Why does Capital Spreads pay no interest on clients' money?
Q.
Any chance of introducing controlled risk bets of the type offered by IG-Index? If not, why not?
Q.
I was recently monitoring a US stock called Legg Mason, considering a long position. The market opened up the next day (presumably after a profit warning) 1300pts lower...
Q.
I've just decided to close my Capital Spreads account, precisely because of not meeting stops... For example, I was long on British Energy today...
Q.
British Energy is just one example. It has happened a few times this month alone and I only place about 20 trades per month.
Q.
Does your platform have a facility that enables me to place trades in 2 directions without cancelling out both trades?
Q.
Simon...you said 'when I used to trade' I take it running a spreadbetting company is much more lucrative for you than trading used to be?
Q.
It is my understanding that no spread betting firm will hedge every position given to them - its too expensive for a start - is this right?
Q.
So do you hedge traders who know what they are doing?
Q.
Just out of interest, how many of those 450 positions would you expect, on average, to be stopped out (for a loss)?
Q.
Why not let your dealers shadow all your winning (star) punters by over-hedging them?
Q.
Am I correct in thinking that you do not offer mean Force Open - to open a position without closing an existing position?
Q.
When I look at the info on GBPUSD on your platform, it says the IMR is 60. That is not really accurate, is it? The Initial Margin Requirement is much more than that...?
Q.
So, does it mean I can open a £50/pip GBP/USD position if I have £3,000 in my account?
Q.
How do you weight the FTSE Rolling daily? It doesn't seem to move according to the future, it is much more stable and does not reflect the actual movement of the future as it varies between 1-2 spreads.
Q.
Your share spreads are tighter than most other companies. It is a pity that you offer such a limited range of stocks compared to IG Index, especially US stocks, which I deal in.
Q.
I have made some trades but nor the spreads nor the margins resembled anything advertised on the Capital Spreads site, in fact the spreads and margins were twice as much?
Q.
Simon, a technical question. Why do I get timed out from the dealer quote window after a few minutes?
Q.
Is there any way of setting the Capital Spreads charts to open with your favourite settings by default?
Q.
Simon, in terms of order filling I must echo an earlier comment that there seems to be a bias that favours filling orders when prices have moved in your favour against when they move in ours...
Q.
You have clients that you're allowing to go £500/point on the FTSE!?
Q.
Can you define scalping for us?
Q.
Well, why don't you want scalpers using your system?
Q.
But if only some 0.776% of your clients scalp what's the big deal?
Q.
Why would one be put on dealer acceptance? For what reasons?
Q.
I have noted that you can't trade UK stocks in the opening 5 mins. Why is that?
Q.
If you have two open trades on the same instrument in the same direction e.g. two shorts on the FTSE rolling daily, you will have to close the trade that was taken first before you can close the second trade. You are not permitted to close the second trade before the first. Why is that?
Q.
Hmm, and slippage on the live platform, how's that?
Q.
Regarding Arb positions. I've spied any number of arbs on Single Share futures, say 30 points between firms on Mar '07 quotes for some shares. Although this profit is 'locked in', do you have any thoughts on how to manage the Stop Loss and Margin requirements of the two companies?
Q.
Where do you get your feeds? It is way too slow.
Q.
Just a theory, but if the Dow, for instance, is actually quoted to two decimal places, if the SB price is quoted to no decimal places, doesn't that mean there's a potential spread of almost two pips (1.98?) 'built in'?
Q.
How do you work out your charts then? Are they based on the real market price or just your quote as it is with the midpoint quote as on the finspreads charts?
Q.
On your own charts, one of the settings is "tick by tick". But what does a tick represent exactly?
Q.
Do Capital Spreads now offer 24hrs FX trading? Have you resolved the issue of rejecting orders when the price moves in your favour and accepting without a re-quote if the price goes against you?
Q.
So you do NOT allow your clients to trade during the busy trading periods (when the pros are trading)?
Q.
Do traders who trade bigger amounts or more frequently get tighter spreads than lower risk per point or not?
Q.
Your prices for the FTSE Index rolling daily and FTSE Index Dec are way too different to the market price?
Q.
Why do some of your quotes not reflect the real market?
Q.
How does your fair value system work?
Q.
Can i place all my trades over the phone? What is your spread on daily dax and daily ftse for phone dealing?
Q.
Simon, do you offer quarterly equity bets on the capital spreads platform like CMC do?
Q.
I understand that you offer 24hr trading on currencies, but from 21:00 - 07:00 this is online only. However, is there telephone support during the night?
Q.
Can you comment on whether CS is ever going to offer 1 pip on indices?
Q.
May I ask why you have decided to discontinue the daily cash futures?
Q.
The extraordinary cost of spreadbetting futures...
Q.
Had a problem with ETX Capital yesterday afternoon, They actually suspended trading meaning no one could exit or enter trades on their web site.
Q.
"Avoid trading cash FTSE products that the spread betting companies offer since, as already mentioned, it's just some fictitious instrument with some connection to the FTSE index/future"
Q.
Do you ever skew spreads/prices?
Q.
All very well but for a fact I saw a spike pre 8:00am on the FTSE 100 December...
Q.
But couldn't a spread betting company easily arrange for a quote to jump around a bit to minimise its overall position, rather than maintaining an exact distance from the underlying future?
Q.
What is the extent of your relationship with Ariel Communications?
Q.
Capital Spreads is a private company owned by a single wealthy individual - or at least that is my understanding (correct me if I'm wrong).
Q.
How does Capital Spreads makes its money?
Q.
How has the short-selling ban of financial stocks affected you?
Q.
And why the preponderance of longs - is this because, like property, prices only ever go up? 
Q.
How safe are client funds?
Q.
But you don't offer free guaranteed stops right?
Q.
Give me reasons why I should open up an account with Capital Spreads instead of another spread betting company. I trade mostly cable. Sell your company to me.
Q.
Why is Capital Spreads in your opinion better than other providers?