Spread betting tips ftse 100 futures

Calendar spread trading on the repo term structure In a TRF spread, the delta position on the index cancels out, as well as the overnight funding payments. The investor's cash flow depends on the short and long-term repo levels and the spot level. The repo exposure changes linearly with the spot.

This is a typical strategy used by hedge funds or absolute return funds to trade on the calendar spread of two repos with different tenors. Downside portfolio protection Typically, insurance companies often buy downside protection for their portfolio against a potential market downturn, i. They may wish to hedge their repo risk by buying the long-term implicit repos through a TRF vehicle.

MP - Month Pack; Selling 1 pack with a later maturity and buying 4 outright contracts of the same contract month with a maturity earlier than the front month of the pack. PK - Pack; Simultaneous purchase or sale of an equally weighted, consecutive series of four Eurodollar futures, quoted on an average net change basis from the previous days close. SB - Balanced Strip; A spread between two strips in the same product and of the same duration.

Strips are made by buying the first expiring strip and selling the later expiring strip. The duration of each strip must be equal and each one must have legs for a total of individual instruments in the given Balanced Strip. After the first month of the strip from the first leg of the Balanced Spread expires, the instrument becomes an Unbalanced Spread. The first leg and the back leg have different expirations. For example, currency spreads change in reduced increments from the outright contract.

Any delivery month can act as the first month of the Strip, as long as there are at least three following months available. Selling the Strip involves selling all months in the Strip, vice versa for buying.

Strips are made by buying a strip in one product and selling a strip in another product with equivalent duration and expiration.

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By and large the major indices follow a recurrent pattern — the stock exchange in Tokyo opens first, followed by London and lastly New York; with each market reacting to changing data in a similar way and with market participants trying to predict what direction an index will go based on what happened in the other major markets. Company Earnings Stock market speculators and spread bettors follow the earnings of companies making up the FTSE index which are usually released on a quarterly basis.

News All day FTSE stock market traders are glued to their news screen on the lookout for news that might impact the economy and the markets. News that might move the FTSE index can range from company specific events to news from the other side of the Atlantic. Here it is important to have access to live-feeds as the financial markets are very efficient and most news will already be discounted in the price by the time the masses read the story on newspapers.

Daily high-low fluctuations of around 60 points are common for the FTSE although movements of points or more are not unheard of during volatile periods. Interest Rates FTSE day traders will keep a watchful eye for any prospective change in interest rates as this will also have a consequent impact on stock market valuations. If a slow moving main index is your game, try the FTSE between 9ampm. If you prefer a fast moving index, Wall Street is best between 1.

With the FTSE being relatively stable, that means price fluctuations are not very wild by and large there is always the exception and therefore neither are your chances to make large gains in a single trade but of course this also means that this reduces the possibility of sudden, sharp index movements catching you by surprise.

The other downside to trading the European Indices is that beyond a certain time of the day, they stop being independent and start to wait for the USA markets to open. They then follow what the USA markets do until their close. This makes the FTSE less of an ideal benchmark of how the UK economy is faring given its relatively narrow breadth and heavy dependence upon banks, oil companies and miners. And why do they trade these key numbers are they thinking people who hold a FTSE company may decide to sell when the index itself reaches a key number?

Answer: No not just random markets. Round numbers, pivots, support and resistance all are real psychological areas where traders take profits and open new positions. Madness of Crowds. Pit traders know it, day traders know it and the institutional program traders know it. You can believe they are random or you can believe they are traders fear and greed.

It is a market capitalization index, which means that it includes the largest companies on the London Stock Exchange. All this really means is that the shares used for calculating capitalization are available on the open market. They adjust to the constituents of the index every quarter. Companies from the FTSE , which covers the next largest companies, can be promoted into the if they have a capitalization greater than the top 90 in the FTSE.

This restriction ensures that there is less promotion and demotion than otherwise, which might foster uncertainty. The 10 largest companies in the FTSE include three oil and gas companies and two mining companies. Because the FTSE is so well known and so heavily traded, you are sure to find that any spread betting company lists several available bets — a rolling daily one and several different future-based bets. Should the market pull back to This quick example shows how the Stop Loss works and also how your upside is unlimited.

This means an investor can spread bet on the UK market: Falling below So, if you continue with the above spread of As a result, if after a few sessions the UK stock market started to move upwards then you could choose to close your trade in order to guarantee your profit. So if the market moved up then the spread might change to You would close your position by selling at In this case, you wanted the UK index to rise.

Nevertheless, it might decrease. So if the spread fell to Therefore, you can speculate on the FTSE index:.

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