Ftse 100 - Ftse 100 Future ??

[ellieCAPRI]

Hello,

A quick question--

I am a day trader and have been trading on FTSE 100. I want to know if i can also trade on FTSE 100 FUTURE as both chart looks VERY similar. Are they identical and move almost parallel on every trading days?


Thanks!

Layla

 

[gle101]

Hello,

A quick question--

I am a day trader and have been trading on FTSE 100. I want to know if i can also trade on FTSE 100 FUTURE as both chart looks VERY similar. Are they identical and move almost parallel on every trading days?


Thanks!

Layla

Yes you can trade the FTSE future at some SB, usually the spread is wider as it is a little bit more volatile. During open hours the future reflect the movement of the FTSE 100. On off hours the FTSE future reflect what is happening in the market overall. With some brokers you can trade the real FTSE future direct market access Liffe London, the Z future. Here is the contract specifications. http://www.euronext.com/trader/cont.../wide/contractspecifications-2830-EN.html?eur

 

[Splitlink]

Fins has a FT Daily Future which moves point for point with the Rolling. The advantage is that it closes on the EOD whereas, if you are not careful to close the trade, the Rolling will open the trade next morning. The spread is the same two points and it moves point for point with cash.

This question has cropped up quite a lot, recently, and I do not know why Fins do not name it EOD Cash, as it seems to confuse. I use it often, with no problems, when I am going out.

Do not confuse this with the monthly named future which has a larger spread.

 

[Citizen2007]

Hello,

A quick question--

I am a day trader and have been trading on FTSE 100. I want to know if i can also trade on FTSE 100 FUTURE as both chart looks VERY similar. Are they identical and move almost parallel on every trading days?


Thanks!

Layla

They are identical and move in the same way. Thats because the FTSE 100 FUTURE is led by the FTSE 100 cash market. Futures traders see strength weakness in the cash and buy/sell futures contracts accordingly, so one mimics the other . The Future actually moves ahead of the cash because of this interpretation and gives the impression that it leads the cash. The only difference you may find in the futures is that it is often gapped on opening, eliminating most of the move

 

[gle101]

The Future actually moves ahead of the cash because of this interpretation and gives the impression that it leads the cash.

I sure hope this always would be the case.

 

[yellowfloyd]

Hello,

A quick question--

I am a day trader and have been trading on FTSE 100. I want to know if i can also trade on FTSE 100 FUTURE as both chart looks VERY similar. Are they identical and move almost parallel on every trading days?


Thanks!

Layla

Hi Layla,

Yes they will tend to move in the same manner.

can I ask why you’re looking to trade the future rather than the one you’re currently trading?

 

[Ritika Sharma]

Britain's benchmark equity index fell on Wednesday to end a nine-session winning streak, as a drop in heavyweight banking shares dragged the stock market down from five-month highs.

 

[timsk]

I am a day trader and have been trading on FTSE 100. I want to know if i can also trade on FTSE 100 FUTURE as both chart looks VERY similar. Are they identical and move almost parallel on every trading days?

Hi ellieCAPRI,
Regardless of whether you trade the cash index (which is artificial) or the futures index - or both of them - it's essential to understand what each of them is and how they impact one another. This Sticky is a reasonable starting point, although it's not comprehensive: Essentials Of 'Indices'

Some members have indicated that the cash and futures are identical. Highly correlated - yes, but identical - no. You can't trade a cash index as such, only a derivative product of some kind. So, the people trading the cash index products offered by spread betting companies are but a small element of the overall market. Indeed, 20 years or so ago, these products didn't even exist. The point being that, IMO, if you intend to trade the cash product offered by the SB companies, you'd be well advised to watch the futures very closely - as that's where the real money is.
Tim.

 

[Ritika Sharma]

Britain's top equity index rose slightly on Monday, lifted by a rally in Aberdeen Asset Management and ambitious economic reform plans in China, a key export market for some UK blue chips.