Long time lurker, but first post..
Just wondering if anyone could clarify me on IG markets australian 200 cash contract..
I know IG can be used as both a mm and dma provider of CFD's.. and I've read their pds, but I really can't find any information on it other then it mirrors the asx 200 cash index..
So what do they do, is it dma? What do they hedge it on? Do they buy a single security of every stock for each contract?? surely not? So what am i actually buying/selling?
And when the market is closed, what do they base prices on? do they just calculate the estimated open of each of the 200 stock prices and it adjusts accordingly?? Because i notice it quite quickly matches up with the asx price..
any help would be GREATLY GREATLY appreciated ! Thanks very much, and look forward to using this forum its great..except for the few threads on this which don't really help hehe