We are often asked to explain more about the FTSE100 Index.  It has been a popular contract for us to trade, over many years, and can provide consistent opportunities when actively seeking high volatility strategies.  

Shares in based Companies are traded on the London Stock Exchange by large corporate institutions and smaller private investors.  The FTSE is an abbreviation for the Financial Times Stock Exchange.  

The 100 Companies with the largest value on the London Stock Market are included in the FTSE100.  This top 100 list is updated on a quarterly basis to ensure that the top 100 companies are represented in any point in time by the Index. 

The Index can be seen as an average price of the top 100 companies when the FTSE goes up during a trading session, overall the shares across the top companies have gained in price. The reverse, being true if the Index goes down on any given day.  The FTSE100 Index was originally established on the 31 December 1983 with a base value of 1000.  The two main reasons that CDM Pacific trade this contract is the liquidity and the non-specific risk which is normally associated with an individual stock or share. 

Institutional traders will be looking to square up many of their open positions and entertain shorter dated trades in the market as the year comes to a close. The temptation, however, will still be there to make a big play before this tumultuous year comes to an end. If you have a really good feel about a directional play over the next week or so then we strongly suggest you have a lay down and wait for the feeling to go away!

2009 will provide great opportunities for anyone with a disciplined approach. More time spent on investment allocation and less time pondering about aggressive plays to pare back recent drawdowns would be sound advice at this time of the year. Make sure that Diversification and Transparency are key in your decision making when you consider your investments.

Latest Trade

Our Standard Ratio Spread was entered into on 20^th November in the FTSE Index. Time decay is working to our advantage and we are set to exit the trade in the next few days. A solid profit above 3% for this strategy, net of all fees, is expected. Please fee free to call us for a detailed explanation on how our trading strategy is consistently working in these difficult market conditions.

From all of us at CDM Pacific we would like to take this opportunity of wishing you and your families a Merry Christmas and a Happy New Year.

We look forward to speaking with you soon about your investment requirements for 2009. May the New Year be a more pleasant one for many after what has been a horrendous year for most market investors. 

Regards

CDM Pacific