What is the cheapest way to trade the RMB? On IB I see: USD.CNH (cash) CNH (globex futures) CNH (hkfe futures) I'm looking to put on around $100K-$1MM USD. I prefer futures contracts due to generally being a cheaper trade to finance versus cash, however the futures seem to have virtually no volume and wide spreads so I am a bit cautious. What is the most efficient instrument (spreads, financing vs USD) available to trade? --- EDIT: I just checked and IB charges a rate 13% for CNY/CNH loans. Kind of crazy.
Check the futures as well on Singapore exchange, I knew about the offshore rmb futures but noticed yesterday there iare also onshore rmb futures in usd listed on SGX. No idea about the volume though
CME is also giving it a shot. Not much volume yet, but if you're a long timeframe player it might work for you.
Have USD/CNY and newly introduced Shanghai Composite Index at Hotforex, spreads look a bit high for majors but should work for sell-n-hold strategy
To follow up on my own post it looks like SGX has the best spreads/liqudity. The contract is UC and the trading is most active during asian market hours. Unfortunately, I don't think I can trade the contract on IB. I get rejected with error "Regulatory Restriction". Strangely it appears I can place an order on GLOBEX for CNH. Not sure why at this point.
Yeah Hotforex is based in Cyprus that the sore point of this company for a first view but practice shows the opposite. What do you mean under Financing Rate?