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The cannabis index

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I like the idea of having a cannabis index.  So I had a look at the chart and found a gigantic green candlestick hanging in mid-air thousands of points above all the other days' prices.   Does anyone have an explanation for this behaviour?  Is this a safe index to 'invest' in?

 

 

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That's interesting, not seen that before. So IG are taking away individual cannabis stocks but have an index instead. I don't know about 'safe to invest' in but seems workable to speculate on though the chart has many spikes and gap traps.

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According to the market info, less than 10 IG clients have a position open and they're all long.  What could possibly go wrong 😁

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Hey folks. The new Cannabis index offered by IG has only just been launched and therefore we haven't kicked off any marketing or promotion at this point in time. We have it scheduled in though so we'll make sure all relevant clients are aware of our offering and provide all educational and informative material. 

Thanks for notifying me of the chart spike. Charts are indicative and it looks like this was a miscellaneous print which we will investigate. I've spoken to the trading IT team and they've gone and manually removed the incorrect tick. This should update on your charts shortly. Apologies but thanks again. (NB: any orders, limits, stops etc wouldn't have been triggered off an indicative charting spike.)

The Cannabis index itself:

  • The Cannabis Index captures the Gross Total Return Performance of the 20* largest publicly listed US and Canadian companies with direct revenue exposure to the cannabis industry.
  • The index itself cannot be traded in the underlying market (hedging will be done in the constituent stocks), therefore we cannot work orders in the index, but are happy with OTC orders to open.

Weightings (subject to change but correct at point of posting)

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As a side note: When it comes to Cannabis, individual stock can no longer be bought, but this only applies to Share Dealing accounts (however you can sell to close). You can still buy or sell individual Cannabis stock on leverage (as below). 

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On 08/05/2019 at 05:42, Caseynotes said:

That's interesting, not seen that before. So IG are taking away individual cannabis stocks but have an index instead. I don't know about 'safe to invest' in but seems workable to speculate on though the chart has many spikes and gap traps.

image.thumb.png.d9b08e1d93a1cd6ff9367b1c4bf09a79.png

They have Cannabis companies like Aurora, Tilray ecc.

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The performance of this index is awful, is the industry floundering or something?!

Also, volumes no longer reported.  Now we have no way to know whether breakouts and trends are strong or not. 

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