Hi all,

I’ve sent David Jones from IG Index 5 questions and here are his answers:

1) What is the difference between FTSE 100 daily and FTSE daily future? Isn’t it quite the same?

DJ: The FTSE 100 daily spread bet is the one that closely reflects where the FTSE 100 cash index is trading. If you run that position overnight a financing charge will be applied to take into account margin costs and any ex dividend days for FTSE stocks will be applied.

The FTSE 100 future is similar to the futures contracts that trade on LIFFE. The cost of financing and dividends is already taken into account so no adjustments will be made if the position is held overnight.

2) Do you get dividends using spread betting?

DJ: Yes, you will receive an adjustment to reflect dividends paid when spread betting – assuming you are using the daily contracts. For the quarterly contract this is already factored in usually but may need to be adjusted if a company’s dividend policy changes

3) Can you explain a bit more how your Bungee product works?

DJ: Read this page here

http://www.igindex.co.uk/spread-betting/bungee-bets.html

4) Why on Options you can’t set alerts, stop loss and orders?

DJ: Don’t know…

5) And last general question – Do you see more activities or less due to the credit crunch?

The credit crunch has made markets more volatile which has traditionally been good for our business.

Have a great weekend!