IG Index (etc) question - do their prices anticipate moves?
Discussion
This is perhaps a dumb question, but does their bid/offer anticipate market moves?
Hindsight is a wonderful thing, but with bank bail-outs over the weekend, and, perhaps more importantly, strong performances on the Asian exchanges overnight, it was as close to a no-brainer as you could get that the FTSE would jump up today.
Was there a blinding opportunity to make money this morning?
Hindsight is a wonderful thing, but with bank bail-outs over the weekend, and, perhaps more importantly, strong performances on the Asian exchanges overnight, it was as close to a no-brainer as you could get that the FTSE would jump up today.
Was there a blinding opportunity to make money this morning?
Slightly strange question.
The FTSE market trades overnight in spreadbetting companies, I would venture the bid/ask is dictated by supply and demand from punters and IG's short term position. So I would expect the prices to be skewed a couple of basis points one way or the other.
I think the answer to your question might be that a lot of punters anticipated the move today (not hard , looking at the Australian stock markets if nothing else) and pushed the price up accordingly.
If you were making the FTSE prics and kept on getting paid, which way would you move your price ?
ETA:
I think the daily FTSE on IG was up about 7% today before the UK Market opened.
Trading with hindsight is wonderfully accurate!
The FTSE market trades overnight in spreadbetting companies, I would venture the bid/ask is dictated by supply and demand from punters and IG's short term position. So I would expect the prices to be skewed a couple of basis points one way or the other.
I think the answer to your question might be that a lot of punters anticipated the move today (not hard , looking at the Australian stock markets if nothing else) and pushed the price up accordingly.
If you were making the FTSE prics and kept on getting paid, which way would you move your price ?
ETA:
I think the daily FTSE on IG was up about 7% today before the UK Market opened.
Trading with hindsight is wonderfully accurate!
Edited by 2something on Monday 13th October 18:15
grumbledoak said:
They'll be genuinely the best bid and ask, maybe 20 mins delayed.
There's no time-delay on IG's prices - If there was you'd be able to look at a live feed to see what was happening over the next 20 minutes and then place a bet on IG in the full knowledge of which way IG's price was going to go for the next 20 minutes. You'd never lose!2something said:
I think the daily FTSE on IG was up about 7% today before the UK Market opened.
Thanks - I guess that answers my question.So it did anticipate pretty well the whole of today's rise, so, as it turned out, buying just before the open left little opportunity to make money.
Edited by Deva Link on Monday 13th October 18:38
MitchT said:
There's no time-delay on IG's prices - If there was you'd be able to look at a live feed to see what was happening over the next 20 minutes and then place a bet on IG in the full knowledge of which way IG's price was going to go for the next 20 minutes. You'd never lose!
A good point. How much do you pay to use this - it must cost them a small fortune to re-publish live prices!
grumbledoak said:
A good point. How much do you pay to use this - it must cost them a small fortune to re-publish live prices!
I pay nothing for an account with IG... except what I give them when I lose on a trade!shadowninja said:
The live prices are supplied by ProRealTime (or was it IT Finance?).
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