Question about differential in FTSE100 quoted figure

Hi folks,

I'm new here and hope someone might be able to help with my query.

I have tentatively made my steps today into CFD trading, and goodness me the way CFDs work makes the profit/loss much more marked in any particular direction!! I not sure whether to continue with this new hobby, but perhaps what I might do is to get some more practise on a 'demo trading simulator'.

Anyway, greetings to all, and my query:-

I bought a total of 9 CFDs today in the FTSE100 index using a new account with City Index. The trades were three separate trades of buys on FTSE at different times and different prices.

I went to work at my evening job, and came home to find that apparently at the moment I am down £210 from my initial £900 deposited with City Index. OK. But the strange thing is, City Index is quoting a closed market with the FTSE showing "sell at 5851" and "buy at 5857" - a spread of 6 (during the day the spread is just 4).

The strange thing is this:- I tune into Ceefax and it says the FTSE closed at 5879.30, quite different from 5851/5857. In fact at 5879 overall my trades would be just a few pounds in profit.

Can anyone tell me why these two figures are different like this?

Many thanks for any assistance! Best wishes.

March FTSE future closed at 5856 last night. I imagine that that is the instrument thaty City use to fedge there FTSE CFD business.

The SB companies will also give an "anticipated" FTSE price based on the price of other indices such as the Dow when out of hours. In reality it is their own made up price and will adjust quickly when the market opens. I have to say that by buying shares you are counter trending what is happening at the moment and as such taking a large risk of losing a lot more of your capital. It would make more sense to take a top down approach, ie what is the longer term FTSE index doing (which is going down) and then short sell shares rather than buy them.


Paul