Setup own Spread Trading using torrent

[captainwifi]

All you need to go short is somebody else who will go long. We setup our own Internet trading platform and say for example I short the Oil at exactly $119.56 dollars somebody else buys the oil at $119.56 - without any spread

Presently I am paying through my neck for spreads of 10points, that a R100 loss on every trade since I take R10 bets on oil, trading 4 times a day - R400 down the drain for nothing.

With SA junglebunny legal sytem we will easily pull this off using some http://scratchpad.wikia.com/wiki/FrontingCompany

If you do this though in the USA you will go to jail, but here in Cloud-coo-coo land, here my friends you can do whatever you want.

 

[Pitbull]

Are you trading in the US ?

If so I would not encourage this

 

[HavocXphere]

Not going to fly. But go for it and see how far you get.

 

[captainwifi]

Are you trading in the US ?

If so I would not encourage this

Of course not, you will be sent to jail promply. I am a RSA citizen we can basically only pull this stunt here in SA. How do you think GT247 got started.

SA is a joke, it doesn't matter what our gambling laws says, only the Scorpions would have had any capacity to stop something like this. NOtice that there is nothing immoral or unethical about this, just as there is nothing immoral about GT247 quoting me a spread on the oil futures. We are doing exactly what they do but cutting out the middleman. Anybody who trades spreads will know exactly what I am trying to achieve here.

 

[captainwifi]

Every single human on this planet is either short or long the dollar, wether they understand this or not. IF all your money is in Rands you are doing nothing else but shorting the dollar and vice-versa. You are a financial speculator and gambler by the very fact of your existence. Have your ever handled money? What was the currency - rands perhaps. Well there you go by holding that R50 rand in your hand you are saying: I am short the dollar wether you comprehend what I have written or not.

 

[captainwifi]

Not going to fly. But go for it and see how far you get.

It will fly if for example we use a basis of trust. I could post Havoc I go short the oil at $119, you counter post ok , I will go long at $119 and we cap the profits or losses at either $118 or $120, with say R1 bet. So max loss or profit is R100.

If I win I pm you my banking details and you pay, I lose you pm me yours and I pay you. Thus a derivative trade was executed between two parties. All a futures exchange does is regulate and enforce compliance.

 

[HavocXphere]

gambling laws

Gambling laws have nothing to do with securities & derivatives trading. Might wanna read up on the Securities Services Act though.

only the Scorpions would have had any capacity to stop something like this

i can haz FSB.

Well there you go by holding that R50 rand in your hand you are saying: I am short the dollar wether you comprehend what I have written or not.

And I was thinking I'm long on the Rand.

If I win I pm you my banking details and you pay,

You serious?

 

[Bondizzo]

It will fly if for example we use a basis of trust. I could post Havoc I go short the oil at $119, you counter post ok , I will go long at $119 and we cap the profits or losses at either $118 or $120, with say R1 bet. So max loss or profit is R100.

If I win I pm you my banking details and you pay, I lose you pm me yours and I pay you. Thus a derivative trade was executed between two parties. All a futures exchange does is regulate and enforce compliance.

this isn't a true way to create wealth as someone has to lose out.

 

[DJ...]

this isn't a true way to create wealth as someone has to lose out.

As with any long/short trade. I dont think the point is wealth creation for short and long positions but rather just cutting out spread cost.

I am not sure of the legalities though - derivatives trading is regulated and you must be registered with FSB to broker a trade. Other thing, it isnt just a case of setting it up and going merrily along. You need to ensure trade settlements go through timeously (cost), you need to pay for live data streams (cost), you would need to hire registered brokers to broker the trades or you link directly with the exchange (cost), you will need your won infrastructure to ensure no downtime (cost) etc. There are other overheads per trade that become a cost to the trader, hence why the middleman is necessary. And who takes responsibility for the trade? You would have to set it up as a business and then you merely become a competitor to GT247.

It wont work IMO...

 

[DJ...]

Or are you referring to more of a closed-group of over-the-counter trades? No settlements etc? If so, then you are still a broking a derivatives trade and fall under the FSB jurisdiction...

 

[captainwifi]

As with any long/short trade. I dont think the point is wealth creation for short and long positions but rather just cutting out spread cost.

I am not sure of the legalities though - derivatives trading is regulated and you must be registered with FSB to broker a trade. Other thing, it isnt just a case of setting it up and going merrily along. You need to ensure trade settlements go through timeously (cost), you need to pay for live data streams (cost), you would need to hire registered brokers to broker the trades or you link directly with the exchange (cost), you will need your won infrastructure to ensure no downtime (cost) etc. There are other overheads per trade that become a cost to the trader, hence why the middleman is necessary. And who takes responsibility for the trade? You would have to set it up as a business and then you merely become a competitor to GT247.

It wont work IMO...

For prices we use the free real-time streams from GT247 or http://www.gcitrading.com. It will be an over the counter type operation for active traders fed-up with having to give R500 on a daily basis to another company! It costs me a fortune to trade.

There won't really be any bandwidth hassels since any active trader has to pay his phonebill himself. only the actual trade will be a simple app like Yahoo messanger that connects two traders in real-time.

It's not legal, but can be done.