Spread bet Indices product details

Our stock indices DFBs aim to replicate the cash price of the underlying index, and are therefore adjusted for dividends [7]. Notes in [square brackets] are detailed in the section below

Our DFB index spread bets are contracts which give a client exposure to changes in the value of a stock index but cannot result in the delivery of any share or instrument by or to the client

1. Where indicated, 24-hour dealing opens at 23.02 (London time) on Sundays, with the exception of Wall Street, US 500,

US Tech 100 and Japan 225, which open at 23.00 (London time) on Sundays. 24-hour dealing closes at 22.00 (London time) on Fridays.

Weekend Markets are currently available from 08:00 (UK time) on Saturday through to 22:40 on Sunday (20:40 for Weekend FX).

Other indices are offered only when the underlying market is open. Please ask dealers for information about public holidays.

a) Please note that Japan 225 is priced as a USD denominated contract.

b) The Brazil 60 is quoted based on a BRL denominated contract. Profit and loss will be accrued and realised in BRL but cannot be withdrawn until converted to the account base currency.

2. All dealing hours are listed in London time, unless otherwise stated. Please note that actual trading times are governed by local time in the country of the index's origin. Consequently, seasonal adjustments (such as daylight saving) in either the UK or the country of origin may cause times shown to be imprecise.

a) During US daylight saving time, this session runs from 17.10-07.00 (Sydney time).

3. a) DFBs on indices are quoted with reference to the front month contract in the underlying futures market. Cash DFB prices are adjusted for the fair value between the prices of the cash index and relevant futures contract.

b) Spreads consist of our dealing spread and a market spread. Both dealing and market spreads are subject to variation, especially in volatile market conditions or other unusual circumstances. On 24 hour index markets, our spreads depend on whether the underlying futures market is open (in-hours) or closed (out-of-hours). Other index markets are only quoted when the underlying futures market is open. Our dealing spreads may change to reflect the available liquidity during different times of day. Out-of-hours spreads on US indices may vary during the US reporting season. Our normal spread during each time period is shown in the table.

c) Dealing spreads may be offered as a fixed or variable amount. If variable spreads are in use, then the spread shown in this table is the amount of IG spread added to the underlying futures market spread. Any variable dealing spreads are marked with an asterisk (*).

d) During the out-of-hours sessions on 24 hour index markets, our quotations reflect our own view of the prospects for a market. This could include referring to price movements in other relevant markets which are open. Furthermore, business done by other clients may itself affect our quotations. There may be nothing against which to measure our quotation at these times.

e) In order to publish more accurate and reliable prices, IG calculates theoretical fair values for the China A50 indices rather than relying upon underlying market differentials. In general, where there are price discrepancies between the cash and futures markets, arbitrageurs return the market closer to its fair value. However, because of trading restrictions in China, these arbitrage trades are often restricted, resulting in wide variances and movements between the underlying market differentials and the theoretical fair values.

f) On IG’s weekend index markets, our quotations reflect our own view of the prospects for each market. This could include analysing specific market or geographic news flow that may affect the equity index market we are pricing. Furthermore, business done by other clients may itself affect our quotations. There may be nothing against which to measure our quotation at these times.

4. For guaranteed stop transactions a guaranteed stop premium is charged if your guaranteed stop is triggered. The potential premium is displayed on the deal ticket, and can form part of your margin when you attach the stop. Please note that premiums are subject to change, especially going into weekends and during volatile market conditions.

5. Please note that tiered margining applies; this means that higher margins may be required for large positions. You can find the applicable tiered margins from the Get Info dropdown section within each market in the trading platform. See our margin page for more details.

6. Wall Street, US 500, US Tech 100 and US Russell 2000 futures contracts can be traded until 14.30 (London time) on the day of expiry. This means stop or limit orders can be filled until this time.

7. The following note refers to cash markets only. DFBs on cash stock indices are undated transactions that do not expire (unless requested, please see note 9). For each day that a position is open, adjustments are calculated to reflect the effect of interest (i), and, if necessary, dividends (ii).

a) A daily interest adjustment is calculated for any position that is opened before 22.00 (London time) and that is still open after 22.00 (London time). For stock index contracts denominated in Australian dollars a daily interest adjustment is calculated for any position that is opened before 16.50 (Sydney time) and that is still open after 16.50 (Sydney time). These adjustments are posted daily to the client's account. Please note that on Fridays open positions will be adjusted for 3 days funding, covering the weekend.

Interest adjustments are calculated as follows:

D = n x L x C x i / 365

Where:

D = daily interest adjustment

n = number of lots

L = lot size

C = underlying index price at 10pm (London time)

i = applicable annual interest rate

Note: The formula uses a 365-day divisor for the FTSE® 100 and other GBP, SGD and ZAR denominated markets, and a 360-day divisor for all others.

Interest in respect of long positions is debited from a client's account, and interest in respect of short positions is either credited to or debited from a client's account.

ii) Please note that overnight funding for the EU Volatility Index and the Volatility Index is calculated in the same way as for commodities without fixed expiries – see our overnight funding page for more details.

iii) A dividend adjustment is applied to take account of the ex-dividend adjustment to the index. This is the number of points by which the index price must be adjusted downwards to take account of those shares in the index which go ex-dividend at the close of the cash market. We will use the ex-dividend figure estimated by Bloomberg (E&OE) to determine what adjustment to apply. In the case of long positions, the dividend adjustment is credited to the client's account. In the case of short positions, the dividend adjustment is debited from the client's account.

8. When you trade in a currency other than your base currency, margin requirements and any profit or loss will be booked to your account in that currency. As a default, we will automatically convert any profit or loss you realise on closing a position to your base currency. You may change this default at any time via our online dealing platform.

9. Clients may request that a stock index position expire on the day that the request is made. The following points will be considered when deciding whether the request will be granted:

a) The size of the position. With larger positions only a partial amount may be allowed to expire.

b) The timing of the request. Expiry requests should be made well in advance of the underlying index expiry time.

c) Expiry market validity. The request will not be granted if for any reason the underlying cash index calculation is not considered a true reflection of the underlying market. For example, if constituent members of the index are not trading.

d) Expiry trading. Cash index DFBs are not designed to allow clients to gain exposure to the underlying index expiry price. Any request considered to be attempting to do this will not be granted.

10. For futures DFBs positions, unless expressly agreed otherwise with IG, positions will be rolled over to a later date by default. For most positions, a client can, before the position has been automatically closed, ask for the position not to be rolled over to a later date. Rolling over a position involves closing the old position and opening a new one. It remains the client's responsibility to communicate their roll preferences for any position(s) before expiry.

11. Any futures DFB position that is not rolled over will settle on the expiry date based on the official closing price of the related expiry market, plus or minus half the IG spread.

13. The Cannabis Index captures the Gross Total Return Performance of the 20 largest publicly listed US and Canadian companies with direct revenue exposure to the cannabis industry. The index is calculated and managed by BITA GmbH, for further information click here.

14. We price our Volatility Index (VIX) and EU Volatility Index contracts in a different way to the rest of our cash index markets. Rather than aiming to replicate the underlying index price, we follow the method used to derive our undated commodity prices. This means that there is a difference between our undated price and the underlying index price on these markets. Funding is also calculated in line with the undated commodity method.
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Our stock indices futures contracts aim to replicate the futures price of the underlying index. Notes in [square brackets] are detailed in the section below.

Unless expressly agreed otherwise with IG, positions will be rolled over to a later date by default. For most positions, a client can, before the position has been automatically closed, ask for the position not to be rolled over to a later date. Rolling over a position involves closing the old position and opening a new one. We normally attempt to contact a client shortly before a position is due to expire and offer the opportunity to roll the position over. However, we cannot undertake to do this in every case, and it remains the client's responsibility to communicate their roll preferences for any position(s) before expiry.

Where a client has agreed with IG to expire a position, we will do so on or after the last dealing day as follows:

Our stock indices futures contracts aim to replicate the futures price of the underlying index. Notes in [square brackets] are detailed in the section below.

Our stock indices futures contracts aim to replicate the futures price of the underlying index. Notes in [square brackets] are detailed in the section below.

Unless expressly agreed otherwise with IG, positions will be rolled over to a later date by default. For most positions, a client can, before the position has been automatically closed, ask for the position not to be rolled over to a later date. Rolling over a position involves closing the old position and opening a new one. We normally attempt to contact a client shortly before a position is due to expire and offer the opportunity to roll the position over. However, we cannot undertake to do this in every case, and it remains the client's responsibility to communicate their roll preferences for any position(s) before expiry.
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Where a client has agreed with IG to expire a position, we will do so on or after the last dealing day as follows:

1. Australia 200 Futures at the Special Opening Quotation (SOQ) of the S&P/ASX 200 on the last trading day calculated to one decimal place. The SOQ is calculated using the first traded price of each component stock in the S&P/ASX 200 on the last trading day, irrespective of when those stocks first trade in the ASX trading day. This means that the first traded price of each component stock may occur at any time between ASX market open and ASX market close (including the Closing Single Price Auction) on the last trading day. Should any component stock not have traded by ASX market close on the last dealing day, the last traded price of that stock will be used to calculate the SOQ.

2. Hong Kong HS50 Futures at the settlement price of the Hang Seng on the last dealing day on the Hong Kong Futures Exchange. The settlement price is the average of the Hang Seng at five-minute intervals, rounded down to the nearest whole number, on the last trading day. Please note that this contract can only be dealt in until 16.00 Hong Kong time on the last dealing day.

3. Japan 225 futures at the special opening quotation of the Nikkei 225 Stock Average on the day following the last dealing day, which is used to settle the Nikkei 225 futures rounded to the nearest 1/10th of an index point. This contract can be dealt in until 21.15 London time on the last dealing day.

4. China H-Shares Futures based on the final settlement price of the Hang Seng China Enterprises index calculated on the trading day prior to the last business day of the contract month.

5. Singapore Blue-Chip Futures based on the Special Opening Quotation of the MSCI Singapore Free index on the day following the last trading day, as reported by SGX.

6. South Africa 40 Futures based on the official settlement price of the FTSE®/JSE Top 40 futures as reported by the JSE Securities Exchange on the third Thursday of the contract month.

7. Taiwan index futures at the Final Settlement Price of the MSCI Taiwan index as reported by SGX on the business day following the last trading day.

8. 24 hours dealing starts at 23.00 London time on Sunday and finishes at 22.00 London time on the following Friday. Ask dealers for information about public holidays.

9. Market trading times are given in London time, unless otherwise indicated. Please note that actual trading times are governed by local time in the country of the index's origin. Consequently, seasonal adjustments (such as daylight saving) in either the UK or the country of origin may cause times shown to be imprecise.

10. On all futures bets, 1 point means 1 index point.

11. Bets on index futures are rolled over provided we receive your rollover instruction at least 15 minutes before our last dealing time.

12. When a bet on an index future is rolled over, the bet is usually closed at the settlement price on the day before the last dealing day, plus or minus half the IG spread, and automatically reopened at the settlement price for the succeeding contract, plus or minus half the IG spread with a 40% concession applied. This applies to bets on all index futures, except FTSE® 100, Wall Street, and FTSE®/Wall Street differentials, which are closed at the settlement price for the expiring contract the day before the last dealing day and automatically reopened at the settlement price for the succeeding contract, plus or minus half our normal spread.

13. If you have placed a controlled-risk bet on an index future, the bet is closed at the settlement of our price plus or minus half our normal spread, and automatically reopened at the middle of our new opening price plus or minus half our spread with a 40% concession applied, and plus or minus the controlled-risk premium. This applies to controlled-risk bets on all index futures, except FTSE®, Wall Street, and FTSE®/Wall Street differentials, which are closed with no IG spread and automatically reopened at the middle of our new opening price, plus or minus half our normal spread, and plus or minus the controlled-risk premium.

14. If you have stops or limits on your index future bet when it is rolled over, we will, unless otherwise instructed, place the stop or limit on the new bet at the same level, but adjusted for fair value. For example, if the price of the new contract is 20 points higher than the expiring contract, your stop or limit would be rolled forward at your existing level plus 20 points. This applies to both guaranteed and non-guaranteed stops and limits.

15. Please note that tiered margins apply; this means that more margin may be required for larger positions. See our margins page for further details. You can find the tiered margins for each market from the Get Info section in our dealing platform.

16. For guaranteed stop bets a guaranteed stop premium is charged if your guaranteed stop is triggered. The potential premium is displayed on the deal ticket, and will form part of your margin when you attach the stop.

17. Large trades may be subject to wider spreads. Learn more here.

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