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Spread Betting On House Prices! Yoy Of -2% Priced In!


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HOLA441
Hi Ian, this is the Average UK one – it’s far less exciting then the other one.

I decided to track them from last week as they don’t seem too far out of line. If that’s the case, although I don’t quite know that yet, then it should help with predictions. Interestingly, the difference between a rational prediction and the spread price gives another sentiment index. B)

4raejj6.gif

nice one

a fair bit of work for you but very appreciated - i (and many others i hope) will be watching this like a hawk for reasuurance i am doing the right thing - to be fair i think the sep 08 one is the one worth tracking - should be a bit more volatile

keep the faith

ib

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HOLA442
Hi Ian, this is the Average UK one – it’s far less exciting then the other one.

I decided to track them from last week as they don’t seem too far out of line. If that’s the case, although I don’t quite know that yet, then it should help with predictions. Interestingly, the difference between a rational prediction and the spread price gives another sentiment index. B)

4raejj6.gif

good info spline. I have not bothered tracking the data for this year. I guess as my positions are all on sept 2008 then I have only been following those dates. At 191/195 UK and 316/320 the lowest it has been for a couple of weeks now. We only need one good -ve month data from Nationwide/Halifax or LR for a significant reduced position.

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HOLA443

september 2008 contracts update

Average UK now

185/193

Average GL

313.5/319

Had this message from Cantor today

As a client of Spreadfair we would like to take this opportunity to notify you of a few changes to the way we will be operating the Housing Markets in the future.

There has been terrific demand for the market and in response to requests from clients we would like to offer more products with longer dated expiries. In order to do this we need to adjust the way our commissions are charged.

The charging has been changed to include the following;

- There will be an annual commission charge on each market of one unit per year, deducted quarterly, on your average open position whether long or short.

- A commission of 3-5% on net winnings on the market is applied at settlement, depending on your commission rate.

If the house prices or interest rates move substantially from August 2007 levels* then Spreadfair may review commission charging. Spreadfair will use its reasonable endeavours to notify you promptly of any changes to commission rates.

The additional charge of one unit per year will only come into effect on the 20th August 2007 and will apply to any bets opened after this date. These charges will not be applied retrospectively to positions you already hold.

Edited by crown
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HOLA447
This is Greater London for Spreadfair Mar/08 and Jun/08 over the last six weeks or so – reacting down as expected on strong bearish news.

gl17sep07lz3.gif

Market seems to have picked up a bit over the last few days. May be the last selling opportunity before the big falls start happening!!!

Edited by Market Observer
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HOLA448

Can someone confirm if the following is right - it seems abit counter- intuitive

Cantor gives you two options

1. Create a new bet or

2. Oppose an existing bet. (maximum stake is the amount dispayed)

Thus by betting against the highest available buy bid dispayed you win the most if house prices fall (compared with the other available buy bids)

Thanks

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HOLA449

28 jul 07

dec 07 199.3

mar 08 197.8

jun 08 195.2

sep 08 192.9

4 aug 07

dec 07 200.4

mar 08 198.2

jun 08 196.2

sep 08 195.2

14 oct 07

dec 08 198.3

mar 08 196.0

jun 08 193.3

sep 08 191.2

dec 08 189.0

in summary the latest update forecasts that the av uk hp will be about 8k lower than today in a year - yoy-4% (-7%real) since the last update (4/8) yoy hps have dropped 4k

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HOLA4410
Can someone confirm if the following is right - it seems abit counter- intuitive

Cantor gives you two options

1. Create a new bet or

2. Oppose an existing bet. (maximum stake is the amount dispayed)

Thus by betting against the highest available buy bid dispayed you win the most if house prices fall (compared with the other available buy bids)

Thanks

Yes that's right. Good Luck ;)

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spline

please can you update this as it is the best forward looking indicator around IMHO.

Hi Ian, this is the Gtr London Halifax with the Cantor Spreadfair prices added from a day or so ago. As you can see, after indulging in a huge feast of bearish news (Rightmove down, RICS price balance, Northern Rock, then Halifax dip, RICS again, ignoring Rightmove up, then IMF) it's now pricing in a spectacular downturn with immediate effect.

gtrlon18oct07ux4.gif

Edited by spline
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HOLA4413

Interesting that the UK house price market is stuck at 190/191.5 for the september contract, has not moved after the recent Halifax drop in house prices.

I think this market is dead now that Cantor have changed the cost of trading. A shame as I would love to sell more at this price, but am unwilling to pay their new fees

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HOLA4414
SEPTEMBER 2008

Average Greater London

302/209

Average UK

186/190.5

large drops over the last week not surprisingly

September 2008

Average Greater London

293/296

Average UK

187/189.5

Big falls on the Greater London Market

Now betting pricing in a 5% fall to september for the UK market

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  • 5 months later...
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HOLA4422
I sold both the september 2008 UK and london markets back in may 2007. Standing at a £1000 profit at the moment.

a 2% fall this month from Halifax is priced in at the moment

Does that take into account your costs, which include

a. Cost of money - having to put 15:1 deposit down

b. Cost of annual charge

c. Cost of commission for winnings

I am half tempted to go long on Dec 2008 as I reckon it is oversold but the various commissions seem a bit steep

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HOLA4423
Does that take into account your costs, which include

a. Cost of money - having to put 15:1 deposit down

b. Cost of annual charge

c. Cost of commission for winnings

I am half tempted to go long on Dec 2008 as I reckon it is oversold but the various commissions seem a bit steep

I did not factor cost of money - put down a £29 stake one year ago. Lost interest = £1

No annual charge

Commission included but not charged if position closed before event

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