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Stock index futures

This topic has 1 reply, 2 voices, and was last updated 12 years ago by John Moffat.

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November 28, 2012 at 2:41 am #55856
dazhong0703
Member
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The stock index futures price is £3850. The face value of stock index contract is £10 per index point (the tick size), which implies a current contract value of £38500.
My query is which item got ‘£’ in front, 3850 or 10? Because if both, it becomes £^2.
Is it because £3850 = 3850 ticks, how to explain, pls?
Thank you
November 28, 2012 at 6:42 pm #109050
John Moffat
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It is the 10 that has the £ in front 🙂
Ticks are used to measure the change in the index, so if the index changes from 100 to 120, then the £ change is 20 x £10 = £200 for each contract.
(Contracts themselves are not measured in ticks)
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