I assume this is because the after hours price of BARC tracks the quote in New York (BCS). The spread in the US is very wide hence the 15 point CMC spread.|
|i've noticed over the last few days the spread on barc in extending hours has gone to 15 from 5. is anyone trading in ext hours?
I shorted barc again tonight at 2174 hoping for a quick 20 points first thing|
|intel after the bell, good or bad???????????|
|missed barc AGAIN at 2300+ dammn, the most obvious trade in the extended hours.
still long ARM 346 from yesterday zzzzzzzz, but will close tonight (i hope)as I should have last night (355) then got back in at the open this morning.
any ideas for tonight??????|
|I have used the new extended hours trading twice now and am very happy with it. Sold Barclays yesterday just before US close at 23001 which was a requote (original screen quote 23003) and bought back in this am at 22964. This afternoon bought ARM at 342 and sold this evening for 357 -again a requote from screen price of 358.The main problem holding overnight before was the US tanking in the wrong direction - atleast now we have the opportunity to bail out early or alternatively make a few bob with careful timing of trades.|
|Have found CMC's afterhours spreadbet facility to be quite good. Albeit, compared to spreadbetting in normal trading hours, the much longer waits to be filled and the many more frequent requotes can be wearisome. Nonetheless, there definitely is sufficient movement from mkt closing quotes to make the service worthwhile.
However, Barc spread on the CMC spreadbet after hours has been 20 pts for several days now - but up till about a week ago it was consistently 10 pts. Whereas AZN's spread for instance has consistently been 8pts. If I'm not mistaken, not only does it appear, from the above, that the spread has been very much tighter for CMC's non spreadbet customers; but it seems curious that they very recently had to\chose to double the spread on their BARC after hours spreadbet.|
my greed didnt allow me to close at a very nice profit
still in the money so I'll leave open (probably to my regret)|
|cmc arm quote fading, which suggest selling pressure among their clients, I would suggest.|
|island have arm 358 on bid, so it seems that the classic arb is available, buy cheap in london, sell expensive on nasdaq.
I would cover arm, and enter tommorow if lower, particularly on a gap down.
Interesting to see where arm opens in the UK.|
looking for the same in barc, long arm from just before the close 346 am now considering covering (354.5) hmmmmmm what to do
redybrek, well done last night, I was very tempted at 2300+ but waited too long being greedy,
|i took a pos in barc last night (short) just as us tanked - closed after about 20 mins this am for 31 points. watching again !|
|Neil, I'm watching ARM and Barclays, with the intention of taking positions in both based on the US price action in the last 60 mins tonight.|
|hi all, good information there, thanks,
has anyone else noticed the price movements of ARM over the last 2 extended sessions. both days the price has been 10-15 points, below the market close price,at around 20:30 uk then consolidated up to the wall street close.
for instance yaesterday i could have bought in at 345 and made an 8 point gain at the open of business this morning, even though the stock was in negative terr. this also happened the previous day.
I am still watching (not trading) these extended hours but i must say there seems to be a great opportunity for taking positions, as noted by Hotei,
|I hate to say this but the spread for the US indices seems to be the same out or in trading hours. For the DOW its currently 5 points.
Of course what you might get when they requote on a trading instruction is anyones guess :-)|
|Any divergences can be arb'ed, if you have the ability to trade multiple markets. It seems there are many more arb opportunities than one might think. To eliminate risk, one needs the ability to execute trades similtaneously, on multiple markets, and it is this which is normally impossible. However, a sufficient discrepency, could be made to profit with less accurate trading.
I have noticed that cmc's feed is faster than advfn. Perhaps it is the link to the futures, and possibly MM order books, which allows them to preempt advfn level 2, but often the change on cmc leads advfn. Occationally a change will occur on L2, but not reflected on cmc. These moments can be interesting short term trading arbs. There seems to be an element of client position / price asjustment going on, which occationally runs out of sync. After hours trading will exacerbate this situation.
My initial thought is that if the price is rising after hours, it can mean one of two things:
the majority of clients are short, and the price rise is squeezing them for margin.
the instrument is being bought, and like all mm's the price has to rise to tempt traders to sell.
until there is some reporting of spreadbet trades, nobody bar cmc will know for sure.
Does anyone know if the final interest adjustments are done using the genuine market closing price?|
|Neil, I tried following the US ARM adr price vs the CMC quote for a while after the UK market closed, and there seemed to be some correlation in movement but not to the extent that the UK price exactly tracks the order book. Whenever I looked at the cmc price, the spread was always 2p. Personally I think I will find it hard to trade after hours, although it's probably a good facility for taking a pre-emptive position on the UK shares just before the US market closes (if you don't mind the interest charge ;-) ). Overall it's probably more like taking a position via an option or a future contract, given that the price is not based on UK order book entries.
One clear advantage is that it does give you the option of keeping a position open if the US is moving in a direction that favours that position, at UK close.
That should (repeat, should)see your position increase in value. If the US direction then reverses, you have the ability to close out that position, hopefully at a higher level than if you had to wait for the UK to open the next day.
In summary then, a useful way of maximising the profit on an already open position, by catching a change of direction sooner, but for me too risky to take new positions except perhaps pre-emptive ones late in the US trading day.
Does that make sense ?
|barc spread has been 5 for most of the evening and moved in relation to the way the dow was performing in the last hour. I shorted at 2307
For info Dow was approx 10240 at 4:30 uk time barc closed at 2290
Dow at close = approx 10100 Barc to open at 2260-65?
Likewise Arm now being quoted at 346-48 closed at 360
nas was 2091 at 4.30 closed at 2044 approx 2.5% down
therefore arm to open 10 points lower?|
LOG is now charged at 15% margin (from 10) since they started the extended hours trading where they have 20 top uk100 stocks at 7%. the interest charge for log is not 15% interest for overnight but a margin charge which applies to this stock (i have the same question why it suddenly becomes a techmark stock and not a ftse100).
mehul, i cant remember what the current rate is charged at but i will have a look and re-post
|From what I can make out CMC are charging 15% margin for overnight positions in LOG. I wonder, anyone know if this is because its place in the Techmark100 overrides the FTSE100 placing as a matter of CMC policy, or is it perhaps a mistake? Cheers.|
|Could u please tell me what rate of interest cmc charge on long positions held over night?|
|Neil - spreads seemed to me to have increased by 100% on the few stocks I looked at closely - that to me is MUCH higher, but I guess these things are relative to one's own expectations.
The gripe about interest is not that I have to pay it should I need to use margin, but that I have to use the margin facility even if I have the funds in my account to cover the entire cost of a position. When I first started with CMC, margin requirements were 20% on ftse100 stocks, then they were reduced to 10%, and now 7%.Whilst this is good news for those who utilise margin to the full extent, for people like me who limit themselves to perhaps 30-40% margin use it represents two increases in interest charges on long overnight positions.
As someone who also tends to look for more long positions than short (where I would receive the interest), this change by CMC represents an increase in costs for using their service.|
|good point spire,
worth checking out as i have seen this before this new extended trading but the position has always corrected when the market opens,|
I use CMC also and have watched with intrest after hours trading
not done anything yet, but I have noticed the price move in
after hours affectes your margin requirement or would appear to,
for example I have a long postion in ARM, at the close today
they were 363.5/365 however CMC are now quoteing 381.5/383.5 when I
checked my net postion they have used the new closing price to
calculate my margin requirment as it happens its in my favour today
but there have been times when I have only had a couple of pounds
excess margin overnight but I think that is not possible now because
clearly if it goes against me they may close out my postion to correct the margin requirent
I do not often hold overnight be it strikes me if I do and am tight on
margin I will have to keep an eye on it until 21.00|