AlphaGamma
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Posts posted by AlphaGamma
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The problem as a trader, is your levels and stops are based on actual real prices from the exchange. To the degree that IG's Australia 200 cash reflects the same levels within a few points, everything is fine. Where they differ significantly, makes any levels for entry, stops, TP and chart retracement levels pointless.
IG's Australia 200 cash differs from the actual index now by 18-19 points currently.
It appears to me that IG is pricing the cash index off some fair value calculation, but on this I am not certain.
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On 19/06/2020 at 15:45, Caseynotes said:
You are speaking as an FX person, where the liquidity is fragmented and there is no central exchange.
Talking semantics when you say they don't offer mirror prices, but aim to track exchange prices. ASX200 price is just the weighted components of the 200 stocks that have defined exchange prices. It is not an index with no underlying basis. Futures prices ebb and flow between premium and discount to cash; but not sure why IG's XJO should do the same with the actual price...we're talking about 15 points currently, which is not insignificant.
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Brokers don't offer exchange prices and don't try to offer mirrored prices they aim to track exchange prices and offer what is available to them from their liquidity providers.
Brokers don't offer exchange prices and don't try to offer mirrored prices they aim to track exchange prices and offer what is available to them from their liquidity providers. If you want to trade on the exchange you need to put up x million dollars and provide business references to apply, you could trade though a DMA platform but even then you are paying the broker's spread.
Brokers prices don't 'lag' the exchange, sometimes they are better but what does that mean in a 2 way market? I've spent odd days watching live prices between broker and exchange and there is no consistency in any lag, they look like they are orbiting each other as they move upward or downward, if that wasn't the case and there was a constancy of difference you could profit from arbitrage.
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Hello,
Could some please explain the difference in price between IG's price for ASX200 CASH and the price I am getting off both the ASX website and my eSignal.
IG has a price premium of around 18 points.
eg. as I type my eSignal shows 5970; the ASX website is lagging a bit but is close to this price.
IG 5987.8/88.8.
I know June futures expired yesterday, but I'm scratching my head why IG's cash index should not be mirroring the actual price.
IG price differential with XJO cash index
in Indices and Macro Events
Posted · Edited by AlphaGamma
You keep mentioning liquidity providers...this is FX speak...... IG don't make a market in a cash stock index based on liquidity providers....IF they want to hedge or reduce exposure they will use equity futures.