Bonsai
still managing to pull the wool over your eyes after all these
months eh
I must be labouring under a misapprehension. I was under the
impression that the daily cash was virtually a straight reflection
of the index. ie: if ftse stands at 4000 daily cash is 3998 - 4002.
If that's right, it (the daily cash) is not moved by its own supply
and demand but is moved by changes in the index. The index
has no supply and demand of its own and moves merely by the
individual changes in supply and demand of its 100 constituents.
Ftse futures, on the other hand, is a tradable instrument in its
own right and does have its own supply and demand to move its
price. That supply and demand is influenced by the ftse daily cash.
Where have I got it wrong?
jon