ETX Capital Reduces Out-Of-Hours Index Spreads by up to 33%

If you trade out of hours, you’ll be pleased to know that ETX Capital, has reduced their spreads on out-of-hours Index trading.

From today, you can access tighter spreads throughout the night, before the market open each morning, on the UK 100, Germany 30 and Euro Stocks 50.

Why are index spreads differently to normal trading hours?

Supply and demand basically. During normal market hours, there are more people trading so the market is more liquid. As there are more buyers and sellers the bid/offer prices are tighter.

Why does ETX charge a spread around the market price?

Spread betting and CFD companies generate revenue by widening the buy and sell prices around the market bid/offers. The spread width is representative of the commission that would otherwise have been charged.

What if you want to deal at market prices?

If you want to trade at, or inside the market bid/offers you need a DMA broker. The advantage of trading DMA is that you can work orders directly on the exchange, therefore, in theory getting better prices. The disadvantage of using DMA in trading, of course, is that you can sometimes miss your price for the sake of a tick.

The common expression here is – “don’t be a pr!*k for a tick”. It basically, means if you want to trade, deal. Don’t muck about trying to get a slightly better price because you may miss out on the position altogether.

What types of trading does this effect?

ETX Capital’s new reduced out of hours spreads below…

Index Spread Trading Hours
Euro Stocks 50 4 00:16 – 07:00
2 07:00 – 16:30
3 16:30 – 21:00
5 21:00 – 00:16
Germany 30 4 00:16 – 07:00
2 07:00 – 08:00
1 08:00 – 16:30
2 16:30 – 21:00
6 21:00 – 00:16
UK 100 4 01:00 – 07:00
2 07:00 – 08:00
1 08:00 – 16:30
2 16:30 – 21:00
6 21:00 – 01:00

 

NEW Futures

Index Spread Trading Hours
Euro Stocks 50 5 00:16 – 07:00
4 07:00 – 21:00
6 21:00 – 00:16
Germany 30 8 00:16 – 07:00
4 07:00 – 21:00
10 21:00 – 00:16
UK 100 8 01:00 – 07:00
4 07:00 – 08:00
4 08:00 – 21:00
8 21:00 – 01:00

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