Australian 200 cash hedged?

[johnytas]

Hi guys,

Long time lurker, but first post..

Just wondering if anyone could clarify me on IG markets australian 200 cash contract..
I know IG can be used as both a mm and dma provider of CFD's.. and I've read their pds, but I really can't find any information on it other then it mirrors the asx 200 cash index..

So what do they do, is it dma? What do they hedge it on? Do they buy a single security of every stock for each contract?? surely not? So what am i actually buying/selling?

And when the market is closed, what do they base prices on? do they just calculate the estimated open of each of the 200 stock prices and it adjusts accordingly?? Because i notice it quite quickly matches up with the asx price..


any help would be GREATLY GREATLY appreciated ! Thanks very much, and look forward to using this forum its great..except for the few threads on this which don't really help hehe

 

[ginar]

Hi guys,

Long time lurker, but first post..

Just wondering if anyone could clarify me on IG markets australian 200 cash contract..
I know IG can be used as both a mm and dma provider of CFD's.. and I've read their pds, but I really can't find any information on it other then it mirrors the asx 200 cash index..

So what do they do, is it dma? What do they hedge it on? Do they buy a single security of every stock for each contract?? surely not? So what am i actually buying/selling?

And when the market is closed, what do they base prices on? do they just calculate the estimated open of each of the 200 stock prices and it adjusts accordingly?? Because i notice it quite quickly matches up with the asx price..


any help would be GREATLY GREATLY appreciated ! Thanks very much, and look forward to using this forum its great..except for the few threads on this which don't really help hehe

Cant talk for anyone else but i normally go straight to the source rather than rely on second hand info . this might help but then again it might not .. it is a free call though


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[skyQuake]

Hi guys,

Long time lurker, but first post..

Just wondering if anyone could clarify me on IG markets australian 200 cash contract..
I know IG can be used as both a mm and dma provider of CFD's.. and I've read their pds, but I really can't find any information on it other then it mirrors the asx 200 cash index..

So what do they do, is it dma? What do they hedge it on? Do they buy a single security of every stock for each contract?? surely not? So what am i actually buying/selling?

And when the market is closed, what do they base prices on? do they just calculate the estimated open of each of the 200 stock prices and it adjusts accordingly?? Because i notice it quite quickly matches up with the asx price..


any help would be GREATLY GREATLY appreciated ! Thanks very much, and look forward to using this forum its great..except for the few threads on this which don't really help hehe

The hedge with the futures - SPI
Also the XJO has a staggered open.

 

[robots]

hello,

they dont hedge and its not really any business to you what they do behind the scenes,

you sign up to their terms if you want to play,

you can sign up with a futures broker to trade the Spi if you like, but you would still have know idea who you playing with or against, its a bet

it is my opinion they have massive fluctuations in the prices to blow out stops, when i was trading the IG spread betting i had this occur numerous times,

any other questions fire away

thankyou
associate professor robots