Weekend bid ask values

[Tavira]

Weekend indexes trades revert to ordinary positions when the markets open. My question is what value will the weekends trade be priced at when the market opens. Example. If I am short a weekend index at  18000. And the ask is 18070.  But the market opens at 19000/19003 bid/ ask what will my short be converted to at the open. I assume 19000. 

Regards

Rob.

[dmedin]

'The weekend prices for indices and forex are quoted separately to their weekday counterparts, based on our view of the prospects for that market given client business and news flow'

 

Apparently the weekend indices are priced on IG's 'views' of where the price 'should be'.  This is astonishing and I don't know how they can get away with that.

In other words it's entirely arbitrary, so you might find enormous gaps appearing as the real indices open on Sunday night/Monday morning.  This presents a distorted picture of market action and should probably, actually be banned in all honesty.

Edited April 4, 2020 by dmedin