Betting on FTSE Daily Future

[Guest Amolad]

If betting on the FTSE I usually use the rolling price, but today I placed a Sell bet on the Daily future when the FTSE was about 7301.

This was closed with a loss of £10 and a new contract opened with a current profit of £7 (so I'm down £3). In the meantime the FTSE fallen about 26 points. I seem to have missed out on the fall ... or am I not understanding something.

 

Any advice/clarification gratefully accepted .... Amolad

[GeorgePizarro]

Hi

 

From what I understand, you say you were short the FTSE 100 Daily Future and held this to expiry and so at 16:30 yesterday your position was closed. However, as you have Daily rollovers enabled you were re-opened in a new short position for today's expiry. Normally you would close at a price X (settlement price at 16:30) and re-open 1 point lower as you were short.

 

Please note that generally on a Wednesday some of the constituent stocks in the FTSE 100 may pay a dividend, and so we must adjust our FTSE 100 DFB/Cash price by the point total of said dividend. Yesterday there was a large dividend paid of 27.9 points. This meant that we manually adjusted our FTSE 100 price by reducing it by 27.9 points, and so you were opened at a lower level. However you’ve not lost out from this, as it was an artificial move and not a market move.

 

In order to disclose these dividend adjustments to clients we publish the following week's forecasts on a Friday on the Community here.

 

I would strongly suggest watching this video which should further explain why and how we make the dividend adjustment.

 

I hope that this clarifies it for you, however, if you or anyone else have anymore questions please feel free to ask!

 

Thanks,

 

MichaelC