Jump to content

ASX200 Price anomalie


Recommended Posts

Hi 

Does anyone know why there is a price difference between live ASX200 price on www.asx.com.au and ASX200 on IG Markets?

Today (2nd July 2018) price difference was around 7 pips, some days are negative other days the difference is 4 pips, everyday it is different.

Looks like there is some arbitrage opportunities here.

Link to comment

Hi @superking,  you are looking at the exchange price which will always vary from all broker prices, there might be arbitrage opportunities between brokers but as a retail trader you don't have access to trade on the exchange. Apart from all the regulations needed to adhere to to even apply the application alone to trade on the exchange is about $50,000, hence the need for brokers. 

  • Like 1
Link to comment

Hi @superking,  because each exchange is dynamic and dependant on their own participants setting current price for that exchange so 2 different exchanges can have very different prices for the same asset. This is seen most dramatically on the crypto exchanges (unregulated).

IG derives it's pricing from multiple sources such as exchanges, banks etc seeking the best available at the time so may well have the same price as one of the exchanges.

Take a look at the pic of the current live prices of some cryptocurrencies on the different exchanges.

See bitcoin varies 6580 - 6587. 

cr1.thumb.PNG.8be2f9ea05b7273abe7377e3e6ea6953.PNG

 

 

Link to comment

I was generalising about exchanges though I would assume big Oz companies could be listed on a number of exchanges just as do big US and UK companies. The current price on any exchange is where the buyers and sellers operating on that exchange are exchanging contracts and that may well be at a different price to a different exchange.

Link to comment

Forgot to add to the last post that prices don't just come from the exchanges themselves. Brokers also use multi-venue technology that combines prices from primary exchanges with MFT data from hybrid systems such as Bats Chi (Australia) and Turquoise (Australia).

tu1.thumb.PNG.75995b98f30055a0ad1c32c0cc04a901.PNGtu2.thumb.PNG.563f4713e655057189adf3626d185a7f.PNGtu3.PNG.7d926ea448a3adc86945a8acfa398c86.PNG

 

  • Like 1
Link to comment

Ok thanks Caseynotes.

Currently the price difference between ASX200 on www.asx.com.au and IG Markets is 7pips.

Traders at IG Markets could be making millions of dollars in arbitrage by trading on their platform and trading on the ASX.

 

Link to comment

Hi @superking,  not sure IG even has traders anymore and don't think that is part of their current business model. The thing is what prices can you get. As a retail trader you can only trade through a broker and live price comparison is only one aspect of what makes a good broker, some would argue other aspects are more important.

Just for interest here is a snapshot comparison of current prices on 3 top UK broker firms, watching for a period of time you can notice quite wild swings back and forward as they reach for different sources for price. It is not consistent, trying to play arbitrage out of that would be a gamble.

brk1.thumb.PNG.9ad2e0d570c012ab435f7dd6a84f60c5.PNG

Link to comment

Hi I also have an account with CityIndex, difference between ASX200 in IG and ASX200 in CityIndex today was around 6-7pips during 10am-4pm AEST. Last week difference was only 2-3 pips. CityIndex always trades closer to the real price for ASX200.

Link to comment

Looking back at my snapshot see the Cityindex spread on the Dax was 6 pip compared to IG which was either 1 or 2 pip depending on the exact time so what does that mean for the '6-7 pip difference' between IG and City's quoted prices? The difference is swallowed up.

Also see FXPro where the dax price was 12300.5 when the Cityindex price was  12325.5, a 25 pip difference.

So brokers run a parallel market and the objective is not necessarily to simply quote as close to any particular exchange as possible, there are many other variables/costs to consider and all brokers place more or less importance on each of those variables in their business model and it is up to the client to study and decide which combination suits them best when choosing a broker. Also there is no such thing as the 'real' price, merely a price at which,for a very short period of time, some traders are willing to swap contracts.  

Link to comment

Yes that's the thing, all brokers are different and it's a case of contrast and compare, there will not be one broker that beats all others on everything, it's just not possible. Some will offer a better this  to lure clients but by necessity that  will automatically be a little worse. Ya pays ya money and takes ya choice.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      20,066
    • Total Posts
      88,116
    • Total Members
      69,065
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Cueball
    Joined 02/10/22 20:33
  • Posts

    • Commodity Futures Market Summary: Elliott Wave Trading Strategies; US Gov Bonds 10 Yr Yields, US Dollar Index DXY, US Spot Gold, GDX, Silver, Copper, XLE Energy ETF, Crude Oil and Natural Gas Market Summary: The USD is expected higher in the trading sessions ahead, which in turn places pressure on any of the commodities that have been rallying over the last few sessions. I also take a look at most of the US Sector ETFs which are under a lot of bearish pressure, basically in line with the SP500 TRIAL Buy 1 Month Get 3 Months Video Chapters 00:00 US Sector ETFs 09:40 US Gov Bonds 10 Yr Yields 12:16 US Dollar Index DXY  17:40 GDX ETF /  US Spot Gold 20:02 US Spot Silver 23:19 US Copper / Lithium / Uranium / Nickel 29:36 Crude Oil. Sector XLE / XOM 32:53 Natural Gas 35:35 Thanks for supporting! Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge com    
    • SP500 US Stock Bear Market: AMZN, AAPL, NVDA, TSLA, GOOGL, BRK.B, SQ, META, NFLX, ENPH, MSFT, BAC, JPM, GS. Elliott Wave Technical Analysis  Stock Market News: OPEC to consider oil cut of over than 1 million barrels per day Stock Market Summary Elliott Wave Count: Elliott Wave Analysis - (iii) of v) of 3 of (1) Analysis US Stocks: Tesla TSLA, Amazon AMZN, Nvidia (NVDA), Apple AAPL, Microsoft MSFT, Berkshire Hathaway (BRK/B),Block, Inc (SQ), Meta Platforms, Netflix (NFLX), Enphase (ENPH), Alphabet GOOGL. XFL Finance Sector ETF, JPMorgan JPM & Bank of America BAC, Goldman Sachs Group Inc (GS) Stock Market Trading strategies: Monday should follow Friday lower in the bearish weekly cycle. Holding short until Wave 3 for most stocks Video Chapters 00:00 SP500 02:11 Apple (AAPL) 03:18 NVIDIA (NVDA) 03:34 Amazon (AMZN) 05:00 Meta Platforms (META) 05:58 Netflix (NFLX)  07:23 Enphase (ENPH) 09:17 Tesla (TSLA) 10:20 Alphabet (GOOGL)  12:08 Microsoft (MSFT) 13:07 Berkshire Hathaway (BRK.B) 14:48 Block Inc. (SQ)  15:55 Banks JPM, GS 20:19 End. Thanks for supporting! Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge com    
    • Dow daily Nothing new on the eastern front But maybe a bounce?        
×
×
  • Create New...