Spread bet Indices product details

DFB notes

1. a) Our DFB index spread bets are quoted with reference to the front month contract in the underlying futures market. DFB prices are adjusted for the fair value between the prices of the cash index and relevant futures contract.

b) Spreads are subject to variation, especially in volatile market conditions. 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) On all index markets, when the underlying futures market is open, we do not apply any weighting or biases to our pricing sources (with the exception of fair value adjustments).

e) 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.

2. 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 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.

3. The Japan 225 is quoted based on a USD denominated contract. Clients can have their bets denominated in USD, GBP, EUR, AUD and JPY.

The Brazil 60 is quoted based on a BRL denominated contract. Clients can have their bets denominated in BRL and GBP. If the bet is denominated in BRL, profit and loss will be accrued and realised in BRL but cannot be withdrawn until converted to the base currency of their account.

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.

4. 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 client 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:

(i) All stock index DFBs not closed or rolled by the client expire at the closing level of the underlying index on the last dealing day, plus or minus half the IG spread.

(ii) All futures bets on the FTSE® 100, Wall Street and index differentials expire on the basis set out below, and/or in the Information table, without IG spread. All other futures bets expire on the basis set out in the information tables, plus or minus half the IG spread.

5. 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).

Ask dealers for information about public holidays.

6. 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.

7. For each day that a stock index DFB position is open, adjustments are calculated to reflect the effect of interest (i) and, if necessary, dividends (ii). 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). 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.

(i) Interest adjustments are calculated as follows:

D = n x C x i / 365

Where:

D = daily interest adjustment
n = bet 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. Positions on the India 50 cash contract will have funding attributed based on the prevailing INR (Indian rupee) interest rate, positions on the Brazil 60 will have funding attributed based on the prevailing BRL (Brazilian real) interest rate, positions on the China A50 contract will have funding attributed based on the prevailing CNH (offshore Chinese yuan) interest rate, and positions on the South Africa 40 will have funding attributed based on the prevailing ZAR (South African Rand) interest rate, positions on the Taiwan Index cash contract will have funding attributed based on the prevailing TWD (Taiwanese Dollar) interest rate, regardless of the currency of your trade.

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) 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), rounded to the tick size we use for that index, 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. 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.

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Futures bet notes

10. a) Our index futures spread bets are quoted with reference to the front month contract in the underlying futures market. The prices quoted for spread bets, which are not on the front month contract, are adjusted for the fair value between that contract and the front month. Prices for spread bets on the front month futures contract are not adjusted.

b) Spreads are subject to variation, especially in volatile market conditions. 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. 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) On all index markets, when the underlying futures market is open, we do not apply any weighting or biases to our pricing sources (with the exception of fair value adjustments).

e) 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.

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.

11. The Japan 225 is quoted based on a USD denominated contract. Clients can have their bets denominated in USD, GBP, EUR, AUD and JPY.

12. 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. Please see our overnight funding page for more details.