Ftse100

[ellieCAPRI]

Hey all!

Trading hours for FTSE100 is 0800 - 1630. I hold an account with Capital Spreads and the trading continues until 9pm and reopens 7am the next working day (with standing trade being rollover) . . .

Q1 -Because FTSE closes at 1630, does that means the market after that relies heavily on the US stocks (nasdaq 100, dow jones, s&p 500). Is there a trend of some sort that i can draw from the States side?

Q2 - I read somewhere on the internet that after 1630, the stocks are quotes from the spread betting company. Can someone kindly explain in simple English what does that means?

Look forward to some replies. Thanks!

 

[arabianights]

Capital Spreads derive their FTSE cash quote from the FTSE Future traded on LIFFE, which trades from 8am-9pm. So in effect the only quote they have to make up is between 7-8, and yeah they'll look at four things basically: 1) Other international markets (especially US and German ones) 2) Their order book 3) Other spread betting firms' quotes 4) What FTSE companies' results have come out.

 

[tomorton]

Q1 - Yes, but its worse than that: actually, you'e trading the Dow / S&P as soon as their futures market really kicks off a couple of hours in advance of the NY open. In the afternoon and evening the FTSE is almost a derivative of the NY markets.

Q2 - SB quotes are not the actual FTSE value, even when the FTSE stocks are being traded through the day. They move up and down in proportion to what NY does. After NY closes, I wouldn't bother to trade the FTSE by SB - have a look at the chart in 5min candlesticks - it will be an obvious non-starter.

 

[ellieCAPRI]

Capital Spreads derive their FTSE cash quote from the FTSE Future traded on LIFFE, which trades from 8am-9pm. So in effect the only quote they have to make up is between 7-8, and yeah they'll look at four things basically: 1) Other international markets (especially US and German ones) 2) Their order book 3) Other spread betting firms' quotes 4) What FTSE companies' results have come out.

Thanks Arabian Nights!

I traded a few times on rollover trade in FTSE100 with Capital Spreads. I traded at 8.59pm, just before the market closed. I study the graph esp after 8pm, 8.30pm but from 6pm generally. At 7am the next working day, the stick will usually starts at average 30pips in either direction. So if my reading and instinct is correct, i will bag the average 30pips on daily basis (i have a full time job and do not spend my days looking at the chart and trade only on FTSE100 so far.. I'm a baby trader) But i realise this is at a higher risk as it is outside trading hours and the values given are quotes derieved from other markets as you highlighted. So i am doing my homework and trying to reduce risk. I also realise that the stop order is not guaranteed outside trading hours, and CS charges a fee for rollover trade.

Anymore further comments would be very welcome and helpful. Thanks!

 

[ellieCAPRI]

Q1 - Yes, but its worse than that: actually, you'e trading the Dow / S&P as soon as their futures market really kicks off a couple of hours in advance of the NY open. In the afternoon and evening the FTSE is almost a derivative of the NY markets.

Q2 - SB quotes are not the actual FTSE value, even when the FTSE stocks are being traded through the day. They move up and down in proportion to what NY does. After NY closes, I wouldn't bother to trade the FTSE by SB - have a look at the chart in 5min candlesticks - it will be an obvious non-starter.

Thanks Tomorton! I will study the US charts together with the FTSE100 and FTSE Futures. May come back with more questions, hope you would kindly assist! Cheers for now.

Layla