Help please: New to CFDs

[b73]

Hi All,

I have been trading direct shares for a number of years, but I'm new to CFD's.
I wanted the ability to go short and trades indices.

I have a few questions that I just cannot find answers to. Can anyone answer these, or point me to a source of reading where I may learn the answers?

My questions concern the 'Australia 200 Cash' as offered by IG.

Initially I assumed this was solely tied to the ASX200. I realised I was wrong when I witnessed it moving outside of ASX trading hours. My searches indicted it is also tied to 'underlying cash markets'.
What does this mean? Linked to currencies? Where can I see the components of the AU 200 Cash and how it is calculated? I need to understand this thing before I can consider trading it!

Also, if it trades around the clock, when were the quoted high and low's achieved? Midnight Sydney time perhaps?

Please help? I'm sure the answers are explained somewhere on the www, but I have yet been unable to find it.

Thanks,
Ben.

 

[havaiana]

Re: Help please. New to CFD's

If you click the below link, click 'CONSTITUENTS' above the chart there is a link to an excel spreadseet with the full list
http://au.spindices.com/indices/equity/sp-asx-200

after hours it tracks the moves of the futures market:
http://www.asx.com.au/documents/products/asx-spi-200-fututres.pdf

Pretty sure the high and low will be that of the whole day, but better to check with IG

 

[babyshoe]

Re: Help please. New to CFD's

Hi All,

I have been trading direct shares for a number of years, but I'm new to CFD's.
I wanted the ability to go short and trades indices.

I have a few questions that I just cannot find answers to. Can anyone answer these, or point me to a source of reading where I may learn the answers?

My questions concern the 'Australia 200 Cash' as offered by IG.

Initially I assumed this was solely tied to the ASX200. I realised I was wrong when I witnessed it moving outside of ASX trading hours. My searches indicted it is also tied to 'underlying cash markets'.
What does this mean? Linked to currencies? Where can I see the components of the AU 200 Cash and how it is calculated? I need to understand this thing before I can consider trading it!

Also, if it trades around the clock, when were the quoted high and low's achieved? Midnight Sydney time perhaps?

Please help? I'm sure the answers are explained somewhere on the www, but I have yet been unable to find it.

Thanks,
Ben.

Hi Ben,

The Aus 200 cash tracks the SPI futures outside of the cash hours. The product is synthetic and market made by IG, it has fixed spreads outside hours, and pricing can be manipulated to suit the provider, a fair value figure (that takes into account dividends and interest on time to expiry) is included in the calculation so it is not clear where the price should be outside of cash trading hours. A more transparent option could be just trading the direct SPI futures contract.

 

[Wysiwyg]

For a visual comparison of the cfd SPI200 and the cfd ASX200 afterhours (now). Similar pattern but bar values different.

 

[b73]

Thanks guys.
I'll do some reading and no doubt return with more questions.
Ben.

 

[RADO]

For a visual comparison of the cfd SPI200 and the cfd ASX200 afterhours (now). Similar pattern but bar values different.

View attachment 57301

Wysiwyg is that IG's MT4 platform?

 

[b73]

So is it possible to trade only the ASX200 index, and only during ASX operating hours?

 

[skyQuake]

So is it possible to trade only the ASX200 index, and only during ASX operating hours?

You can trade it almost anytime you want.
if you intend to hold overnight though, you'll deal with increased spreads and volatility from the US

 

[b73]

You can trade it almost anytime you want.
if you intend to hold overnight though, you'll deal with increased spreads and volatility from the US

What I meant was I'd like to trade the ASX200, and only the ASX200.
So I'd like to be able to hold overnight and the value won't change outside of ASX hours.

Does anyone offer this?

 

[Trembling Hand]

What I meant was I'd like to trade the ASX200, and only the ASX200.
So I'd like to be able to hold overnight and the value won't change outside of ASX hours.

Does anyone offer this?

No. The ASX200 is just data from a collection of stocks and not a trade-able instrument.

 

[Wysiwyg]

Wysiwyg is that IG's MT4 platform?

No, mate.