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What are your market prices based on? |
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We create and publish our own prices based on real-time feeds from a variety of institutional price contributors depending on the market. We have no 'influence' on any prices and in fact need to keep them based around mid market data as we allow both sides of a trade (buy and sell) to take place at any given time.
Our prices on some markets like major indices are based on the real underlying prices of the most actively traded instruments (futures) related to the market. For these markets, our daily price is calculated as the price of the relevant futures price adjusted by our daily fixed 'fair value' amount. This 'fair value' adjustment is normally set daily after the market has closed for trading, and is itself calculated from the theoretical value of the dividends payable between today and the expiry of the future and the cost of carry (interest) for the index over the same period.
The benefit of this, means very dynamic two way prices which react quickly to news and sentiment, and closely approximate the prices on the underlying markets you may see on television or other media sources. More trading FAQs
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