Q. It is said that market makers are there to provide liquidity. Is this correct? Is providing liquidity their only job? How can I tell if a bid-offer spread is put there by the market makers or naturally by different...
Latest Posts
Stock Market Workings
Stock Market Workings Q. When you see a trade go through for say 12 shares or even 1 share, what is that all about? Surely it can’t be a personal investor, is it some sort of balancing act? A: Say there are 1,100...
Understanding Level 2: How It Works and Why It Matters
General Stock Market Questions – Level 2 Q. How does Level 2 work? A: Level 2 displays continuously updating data from the LSE (London Stock Exchange) displaying such information as individual orders, trades, volumes and...
Working for a Spread Betting Company
Q. How does it feel like working in a spread betting company? A: Here’s free inside look at how it feels like working in a spread betting company on a particularly volatile day narrated by Robert Mendick (13.10.08) -: The...
MiFID Regulations: Implications for Spread Betting and CFDs
Q. What is MiFID and what are its objectives? A: MiFID is an acronym for the Markets in Financial Instruments Directive (2004/39/EY), part of the EU Commission Financial Services Action Plan which seeks to create a single...
Spread Betting White-Label Clones
Q. Looks like Capital Spreads, smells like Capital Spreads, but it’s called Financial Spreads! (huh?) A: Financial Spreads uses the Capital Spreads platform so the spreads and markets available will be the same; in...
Complaints and Enforcement of Debts
Q. Isn’t spread betting gambling per UK law and thereby debts not legally enforceable? I would presume that in such a case there is a good chance you could lose any gains in an extreme event if the firm or its systems...
Segregation and Ringfencing of Client Funds
Q. What if my spread betting provider goes bankrupt!? I have heard of Global Trader going into financial difficulties just on the exposure of one client – so suppose I open an account with a spread betting firm how...
Do Spread Betting firms Hedge their Customers’ Bets?
Q. I am with Finspreads as you know and when betting the FTSE 100 what exactly am I trading? It seems like Finspreads’ own FTSE100 and not the actual index itself. I get the impression I am betting against others...
Using Charting Tools to Predict Future Price Movements
Q. How do you identify a trend and what makes a trend? All these articles are nice to read. But how useful are they in practice? For example, you state that if the main trend is up, and the short term trend changes from down...