This is a mobile optimized page that loads fast, if you want to load the real page, click this text.

What is the XJO?

Jump to new
Re: what is xjo?

Timmy said:
The XJO is the S&P/ASX200 Index.

Bit of a run-down here:http://en.wikipedia.org/wiki/S&P/ASX_200
Click to expand...

Just wondering how the point value is calculated for an index. I read that
The ASX 200 is market-capitalization weighted meaning that a company's contribution to the index is relative to its total market value i.e. share price x number of tradeable shares.
Click to expand...

So if companies that make up the index determine the point value, how can index traders influence the point value? What exactly are we trading?
 
Re: what is xjo?

cutz said:
The index in a nice little package, http://www.asx.com.au/products/futures/index_futures/product_description.htm .
Click to expand...
Yes thanks for that. So a futures contract index point value is determined by other futures contract buyers and sellers. Who are in turn driven to buy or sell contracts in reaction to the underlying index movement.

What I meant was the cash market index contracts that CFD providers have. They use the XJO as the index and it is point for point but the contracts are tradeable off that index movement.
 
The index is calculated by S&P. You can find the methodology on their website. Expect a long read.
 
Re: what is xjo?

No worries. I'll do research on the differences between cash market and futures market.

Futures vs Cash Market

It is important to distinguish cash market from futures markets when looking at a particular commodity. Many people do not realize that there is a difference between the two.
Click to expand...
 
What are CFDs ?

Do any of them actually have a decent trading platform compared to IB ?

Just joking towards CFDs ... just don't wish to touch them ... too many opportunities elsewhere.

Rather trade futures or US if wanting to go short.
 

Attachments

  • contract_specifications_index_cfds.pdf
    33.7 KB · Views: 16
So in the wash up, contracts don't move the XJO. The trading of the stock that make up the index moves the XJO. The derivatives markets of this index are then sold or bought via contracts exchanged with one another. For example the SFE SPI.
 
You must log in or register to reply here.

Similar threads

XJO, Gear, Spi, Overwrites & CC's (no not the chips)
2
Replies
21
Views
5K
Rosscoe62
Grok's High Probability Trend-Momentum Breakout System
Replies
9
Views
2K
divs4ever
4 reasons why the ASX 200 will struggle in September
Replies
8
Views
626
DannyB0000
August 2025 DDD
2 3
Replies
54
Views
7K
ducati916
How to totally xuck the worlds largest economy with a chainsaw
Replies
14
Views
2K
basilio
Menu
Log in
Register
Cookies are required to use this site. You must accept them to continue using the site. Learn more...