Trade At Index Close
Revision as of 14:36, 7 August 2017 by JohnJLothian (talk | contribs)
Trade At Index Close is an execution trade strategy on InterContinental Exchange's futures markets on its electronic trading platfom that allows a market participant to trade a futures contract in terms relative to the closing price of the underlying index.
During the course of the day, a market participant my express a bid or offer as a differential to the closing price of the underlying index, also sometimes referred to as the cash index or spot index.[1]
At the CME Group, this type of trade is referred to as a BTIC, or Basis Trade at Index Close.[2]
Another related strategy is TAS, or Trade at Settlement. In a TAS trade, the differential price is relative to the closing settlement price of the futures contract.[3][4]
Example[edit]
For example:
- a TIC bid of +.53 means that the bidder wants to buy at the closing value of the underlying index, plus .53 index points);
- a TIC offer of -.21 means that the seller wants to sell at the closing value of the underlying index, minus .21 index points;
- a TIC order placed at 0 means that the buyer or seller wants to trade at the underlying closing value of the index (the closing cash value of the index).
References[edit]
- ↑ Trade At Index Close (TIC). Intercontinental Exchange.
- ↑ Basis Trade at Index Close (BTIC). CME Group.
- ↑ TRADE AT SETTLEMENT (TAS). Intercontinental Exchange.
- ↑ rade at Settlement - TAS. CME Group.