what causes ftse 100 price movements out of hours?

badoshi · Nov 13, 2008

i'm a bit of a novice when it comes to trading, but have noticed on my IG spreadbet screen that the ftse100 price continues to move out of regular trading hours.

I've always thought that the ftse100 was a weighted index dictated by the share prices of the top 100 uk companies. So how can the price fluctuate once trading hours are over?

Obviously my assumptions as to what the ftse is, is wrong. could someone please explain?

Many thanks.

Rhody Trader · Nov 13, 2008

Make sure you're looking at the actual cash FTSE and not the futures contract. The latter effectively trades round the clock, though in lighter volume outside normal market hours. If you are indeed looking at the cash index, then what you might be seeing is a reflection of component stocks trading outside regular hours, which they no doubt do.

gooseman · Nov 13, 2008

it's the future and take into consideration how a future is priced.

it's also a barometer for economic health to an extent.

barjon · Nov 13, 2008

badoshi said:
i'm a bit of a novice when it comes to trading, but have noticed on my IG spreadbet screen that the ftse100 price continues to move out of regular trading hours.

I've always thought that the ftse100 was a weighted index dictated by the share prices of the top 100 uk companies. So how can the price fluctuate once trading hours are over?

Obviously my assumptions as to what the ftse is, is wrong. could someone please explain?

Many thanks.

You are not looking at ftse (even in hours) but IG's quote which is a different animal and which they make up themselves. In hours it will stick pretty close to the real ftse and out of hours it reflects what futures are doing.

jon

what causes ftse 100 price movements out of hours?

badoshi

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Rhody Trader

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gooseman

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barjon

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