Day Trading & Forex Forum

ash87

i just wondered what a person obtains once they hold FTSE futures till expiration

Glenn

If using Direct Access, you will have an opposite trade assigned to yours, at the final EDSP price (Exchange Delivery Settlement Price). So you will end up being closed out and the EDSP price will determine whether you won or lost.

If you are using SB, then some types of bet are rolled over automatically to the next contract, otherwise you will be closed out at (hopefully) the EDSP price, as above.

Option expiry can be pretty hairy just before 10:30 am, although the authorities have tempered this somewhat now, but you could see, say, a 50 point move in the last few mins, for or against you.
In 1998, before the authorities clamped down, this is what happened on 21st March:-
"In just 15 seconds, between 10.15 and 15 seconds and 10.15 and 30 seconds, the index plunged by 160 points, only to soar by 140 points before the minute was up."

Glenn

ash87

Thanks, thats cleared things up for me. i thought you would get a basket of FTSE shares at expiration. So from what your saying, the contract is just a way of allowing traders to speculate on the FTSE, nothing else?

Glenn

Yes.

Glenn

Claudia123

ash if you don't understand FTSE futures do not trade them. Glenn made an excellent and very clear reply.

ash87

Thanks Glenn for clearing that up for me. Appreciated

Hi there Claudia, although im sure your comment was written with the best intentions i do however take issue with it. My question was curiosity based and hypothetical in nature.I do not trade FTSE futures or do i have plans to do so in the future.

On a more general point, the problem i have with responses such as this is that they tend to intimidate the newbie such as myself from asking future questions. A lot of the time when an inexperienced person asks a question, he/she gets many responses that imply that 'if such a question needs to be asked you shouldn't be on this site'. I'm sure you can appreciate that generally this type of response isn't that helpful.

Its not for you, me or anyone else to dictate what a person can or cant do with their money, only advice can be given. Its up to the person in question to decide whether or not to discard the advice given.

I think forums are places where people share ideas and ask for advice. Although I may be inexperienced today, some time down the line i wont be. when that time comes i hope i can contribute to this forum by giving an as in depth response as i recieved from Glenn.

Thats my rant over.

intradaybill

Cash settlement.

GammaJammer

I am going to come down on the side of the OP here Claudia, sorry. I don't think the original question was an unreasonable one - and while it may have been a tad lazy (as this information is freely available on the internet to be honest) the OP ended up being justified in using T2W to ask the question, as the reply that came back was concise and at the same time detailed and probably very useful.

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