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A basic question about index trading - UK100

Discussion in 'Beginner's Lounge' started by steelcat, Feb 8, 2015.

  1. steelcat

    steelcat

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    I like UK 100 the most.

    in commsec, There are -

    FTSE 100 cash (A $10 contract)
    FTSE 100 Cash
    FTSE 100 FEB
    FTSE 100 MAR
    FTSE 100 JUN


    what are the difference?
     
  2. cynic

    cynic

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    The FEB, MAR and JUN contracts are forward/futures contracts which expire on the third Friday of the designated month.

    The cash contracts do not expire, however, debits and credits in lieu of interest and dividends will accrue in respect to any positions held beyond the end of the trading day.

    Normally, the UK 100 positions are traded in GBP, however, the cash (A$ contract) is, to the best of my understanding, a specially tailored CFD created for the convenience of traders with a preference for trading UK 100 positions denominated in AUD.

    Before deciding on which (if any) contract to trade, I encourage you to liaise with your CFD provider/broker (in this case Commsec) for more in depth information regarding the nature of these contracts.
     
  3. steelcat

    steelcat

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    Thanks!
     
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