Price construction is explained in detail in our Trade
and Order Execution Policy. In summary:
Equity CFDs
Our Equity CFD prices are sourced directly from the relevant
exchange e.g. LSE. This means that in standard market size or less,
our prices match the best bid/offer available on the exchange
system. In the case of larger trades we will work your order to
your price limit instruction, obtain the best possible price
currently available in the market or provide a firm quote in the
size.
All prices will be quoted in the currency of the underlying
exchange for example, UK equities in pence, US equities in
cents.
Stock Index CFDs
We provide CFDs referenced to the major global equity indices.
CFDs are synthetically created markets that reflect the cash price
by taking the equivalent futures market contract and deducting the
'fair value'. This is to reflect the cost of funding and dividends
between the trade date and the futures expiry date. The exposure
can be hedged in the relevant futures market.
City Index trade CFDs on the FTSE, DAX and CAC when the markets
are closed. The price quoted is based on the closure price of the
index and is influenced by activity in world markets and business
we are receiving.
Stock Index CFDs have no fixed maturity date and positions can
normally be closed at any time during City Index's trading hours
for that particular market.
City Index may adjust the CFD spread to take account of supply
and demand.
UK Sector CFDs
There is no formal market place for these products. Share sector
mid prices are calculated once per minute through the day by FTSE
International. We create a CFD using the current spot price and
adjusting it down 0.2% for the bid and up by 0.2% for the
offer.
City Index may adjust the CFD spread to take account of supply
and demand.
Currency CFDs
There is no publicly accessible central exchange or marketplace
for FX.
We price our currency CFDs by taking in a minimum of three
electronic price feeds from the professional market, select an
accurate mid price and wrap a spread around it. This gives our
clients a bid to offer spread of circa three to 10 basis points
depending on the currency pair.
The prices we offer on currency CFDs are highly competitive and
are consistently applied even in times of market volatility such as
pre and post economic statistics releases. Our spreads may be wider
in situations of extreme volatility.
City Index may adjust the CFD spread to take account of supply
and demand.
Precious Metals
There is no publicly accessible central exchange or marketplace
for precious metals.
We take price feeds from a price aggregator of market
professionals' contributions and apply our consistent spread around
a mean price. In the case of Gold our bid to offer spread is circa
half a dollar and in Silver circa three cents.
The difference is due to the liquidity of the futures market
into which City Index hedge our exposure.
City Index may adjust the CFD spread to take account of supply
and demand.