How to trade the FTSE index long and short
How to trade the FTSE index long and short
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user670186 · External communityPost link
External question — Quantitative Finance Stack Exchange
Author: user670186
Original post: https://quant.stackexchange.com/questions/35228
License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/
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I built a trading model to predict the FTSE index. However, apparently one cannot trade the FTSE directly, but only different underlying products.
My model trains on the FTSE index, however tradeable FTSE futures are 20% different in daily direction.
Are there any ways to trade the FTSE index directly and not some derivative product that has different daily price movements?
I saw that apparently there are
different FTSEs
to choose from
Also, interactive brokers shows a
list of several FTSE indices
to trade.
There is:
FTSE 100 Index Z
FTSE Eurotop 100 Index Q
FTSE 100 TR Index GBP TUKXG
I don't understand what it means and which one represents the real FTSE 100 index to train my model on.
Short explanation would be helpful
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chjortlund · External communityPost link
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Author: chjortlund
Original post: https://quant.stackexchange.com/a/35250
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I would have a look at ETFs tracking the FTSE 100. There will still be a small tracking error due the the way ETFs work.
At a starting point have a look at this list:
FTSE 100 Index ETFs - ETFdb.com
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james · External communityPost link
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Author: james
Original post: https://quant.stackexchange.com/a/35251
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I agreed with chjortlund. Tracking ETFs are probably your best bet with a marginal tracking error depending on rebalancing etc.
However, the question is why would you have a strategy on something that is not directly tradable? i.e. strategy that works on the VIX but not its futures would be pointless.
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Quoted from Forex.com.bd-Editorial External question — Quantitative Finance Stack Exchange Author: user670186 Source score (net votes, not local likes): 0 Original post: https://quant.stackexchange.com/questions/35228 License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I built a trading model to predict the FTSE index. However, apparently one cannot trade the FTSE directly, but only different underlying products. My model trains on the FTSE index, however tradeable FTSE futures are 20% different in daily direction. Are there any ways to trade the FTSE index directly and not some derivative product that has different daily price movements? I saw that apparently there are different FTSEs to choose from Also, interactive brokers shows a list of several FTSE indices to trade. There is: FTSE 100 Index Z FTSE Eurotop 100 Index Q FTSE 100 TR Index GBP TUKXG I don't understand what it means and which one represents the real FTSE 100 index to train my model on. Short explanation would be helpful
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