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Spread of Indices are larger and larger?


Guest Ann

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On 16/03/2020 at 14:16, KKPeter said:

Same issue here, would like to know why IG is increasing spread of US 500 Cash above and beyond the usual and those stated in their brochures

The spread on the underlying market (Emini ES S&P 500 futures) have increased due to market volatility; On the CME Exchange where these products are traded the spread between Bid/Ask went from 0.25 to 0.50/0.75. It means there are no contracts available to trade at certain levels. Fewer traders are willing to take the risk given the sharp moves and increased margin rates set by the exchange.

IG re-balanced their spreads to reflect these changes. Other brokers increased spreads too but not as much as IG. 

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