Spread Betting Spreads?


Veteren member
4,106 11
BB and others.
I would suggest to you the way to think about all CASH quotes
is that they are based on futures LESS fair value diff.

So the quotes are as volatile as futures but can be thought of
as a cash instrument.

This allows sb's to offer a one day instrument and still have the
ability to lay off their risk in the futures market.
This might also explain to you why the quotes sometimes seem
to have 'bias'.

But the fact is you cannot trade the index only the futures
suitably adjusted to look like CASH.

You have to think of the situation from the sb's point of view.
(regardless of how irritating that might be).


70 0
D4F will base their quotes on the fastest reacting instrument for that asset and rebase it back to the main asset eg. for Dow, they base their movement on futures but equate it to actual cash Dow, this is why Dow futures and D4F Dow are not at the same level but move the same.
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