Germany Mid-Cap 50 — never seen 6 point spread...?!

[Guest Guest]

The spread for the Germany Mid-Cap 50 index is stated as 6 points (but variable), see here:

https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/fees-and-charges/what-are-igs-indices-cfd-product-details

However, I've never really seen anything less than 17 points during market hours of 08:00-16:30.

[JamesIG]

Hey - there are notes on this table specifically which you can see below. 

Dealing spreads may be offered as a fixed or variable amount. If variable spreads are in use, then the spread shown in this table is the amount of IG spread added to the underlying futures market spread. Any variable dealing spreads are marked with an asterisk (*).

In other words, the 6 points is around the underlying market spread. This is relatively large for this market and therefore should be correct. Unfortunately due to a number of reasons surrounding liquidity we are unlikely to reduce this.

[Guest Guest]

Yes, I know this is a variable spread. But the point I'm making is that you've advertised it as 6 points, and during normal market hours of 08:00-16:30, the spread is hardly ever below 17 points.

Can you provide a graph from Bloomberg showing the spread of this contract say over the last 48 hours or so? It would be interesting to see during when exactly the spread is around 6 points and so when best to trade.

[Caseynotes]

I'm reading this not as the asset has a spread of 6 points but that IG add  6 points to the underlying market spread.

[Guest PandaFace]

17 minutes ago, Caseynotes said:

I'm reading this not as the asset has a spread of 6 points but that IG add  6 points to the underlying market spread.

Same