Indice trading Question IG Markets

OK, I was going to go long the dow yesterday with IG Markets.

The dow wasnt refereed to as the dow, but as 'wall street,' i assume that's it.

Unlike the FTSE 100, wall street didnt match the dow exactly. but is roughly the same at 12800 points or so, maybe 100 out.

Why is this? is this a dffrent indice, ayone know where i can trade the dow?

Where were you getting your 'Dow' price from? Let me guess, Ceefax or some other delayed data source like Yahoo?

Probably comparing a spot cash price with near month futures ?

yea yahoo,

and this indice was allowing people to trade before the exchange opened at 13:30 gmt.

def was the 'wall street future'.

Confused :/

The FTSE 100 works fine.

bump

You answered your own question here – “Wall street FUTURE” . It’s not the same as the DJI or “Wall Street Cash”. It’s a futures contract, and hence will be priced for the expiry date which takes into account future dividends and zero-risk interest rates.

Call them and ask them. You should check exactly what it is that you are punting on.

"Wall Street" is Dow, but they will do several different versions. One is their cash version. Many bucket shops are notorious for shall we say "irregularities" with these instruments. The price is derived from the output of a random number generator - at the moment I think IG is using the machine that picks the balls for the mid-week lottery draw.

Then they will also have their versions of various futures contracts - there are four of these each year, the current one being June (the actual instrument is YM M2 - YM is the Dow code, M is June, 2 is 2012).

In fairness to IG, when I used them (Index rather than Markets) their front month futures contract was pretty much spot on. They used half points which obviously don't exist, but the price was always within half a point of the actual value. Of course, they charged a four tick spread as well, which I was happy to leave behind...

Sorry wrote the below on a stale page before i saw Leapord's posting.

I think the point is , its a Daily Funded Bet, which will have a cost associated with it.
My guess, the FTSE DFB seems to match the spot shown on BBC website closely due to the low cost of funding, since IG is a UK based company.
Dow cost of funding is higher and hence does not match the spot shown on Dow Jones ? Business & Financial News, Analysis & Insight.
I have found IG help desk to be quite helpful, maybe one to get confirmed with them?

Cheers!