What's actually being traded out of hours?

[MrMicawber]

Noob alert - sorry!

I've recently started trading the FTSE 100 index with an IG Spread Betting account.  It makes perfect sense to me that while the market is open, you can bet on its movements.

But when it's closed, it's still possible to open and close positions against a moving index, albeit with a larger spread.

What's actually moving the index, thus providing movements against which to bet?

[Caseynotes]

2 minutes ago, MrMicawber said:

Noob alert - sorry!

I've recently started trading the FTSE 100 index with an IG Spread Betting account.  It makes perfect sense to me that while the market is open, you can bet on its movements.

But when it's closed, it's still possible to open and close positions against a moving index, albeit with a larger spread.

What's actually moving the index, thus providing movements against which to bet?

Hi, what is actually being traded all the time is IG's market prices which are based on the underlying FTSE market, out of hours IG base their prices on the FTSE Futures market instead.

[MrMicawber]

49 minutes ago, Caseynotes said:

...out of hours IG base their prices on the FTSE Futures market instead.

Of course.  That makes sense, thank you. 

Presumably the price on the real-time charts switches seamlessly at market open and close?

[Caseynotes]

Just now, MrMicawber said:

Of course.  That makes sense, thank you. 

Presumably the price on the real-time charts switches seamlessly at market open and close?

IG's prices based on the underlying market and the underlying market prices tend to dance around each other, changing places higher or lower but remain closely correlated most of the time. Generally there is no noticeable change on market close though sometimes in the FX market just after 10 pm there can be an occasional small spike as new liquidity providers start providing prices to IG.