SGX A50 Index future

Discussion in 'Index Futures' started by soler, Jun 28, 2015.

  1. soler

    soler

    Wondering anyone here trading the A50 index future that follows Chinese A-share market on SGX.trading symbol-CN. access thro IB.. hugh vol lately..anyone care to share their experience? fill quality etc..
     
  2. i960

    i960

    I trade this. Fill quality is good. Liquidity is very good. It can be volatile at times with some fakeouts. Price action knowledge and sound trading basics are a must. Keep your stops more than a couple ticks away from where you'd normally keep them - it likes to tick you out. Chop and then momentum style. While on the surface it may seem slightly erratic its probably one of the more predictable Asian futures. I'd rather trade this than HSI. Lots of liquidity is coming from ETFs and most likely arbitrage algos. I also watch HSI and HHI.HK while trading it. Seems to settle down for about 1.5-2 hours around Asian lunchtime period and by settle down I mean basically stop moving entirely.
     
  3. Shanghai (SSE) has an hour and a half lunch that the CN contact on SGX sleeps through..
     
    i960 likes this.
  4. minmike

    minmike

    Such a tiny contract. Is it worth trading after commissions?
     
  5. moonmist

    moonmist

    I have not looked at CN yet. But I did study the Hang Seng Index Futures on Thursday. Besides the wide bid/ask spread, I was surprised to find out that IB round trip commission was about US$7.7 (HKD60) per contract.
     
  6. minmike

    minmike

    Yeah, IB is expensive. If you do professional volume you can find ~5-7 hkd.
     
  7. risknav

    risknav

    I remember a while ago the SGX submitted an application (not sure to who, probably the regulators) for FOPs on this future.

    I haven’t heard about it since, but since that point with the reduced tick size (2.50 vs 5.00) and the crazy mainland speculation the volume has exploded.

    So has the volatility for this index, which could provide some very interesting short volatility strategies – if they provided FOPs.
     
  8. i960

    i960

    You need to factor volatility in. It'll move 10 ticks quickly so that 1 tick in commission payed is already fairly offset by a move if you're on the right side. It's like the difference between trading ES vs TF or YM. I'm personally still trying I learn all the nuances of this particular contract (XINA50/CN) such that I can minimize entry risk. Even though it may appear small and have a small tick size you can easily lose 20-40 ticks per contract simply by not having the best entry and getting stopped out.

    It's a hell of a lot more interesting than anything US markets are doing during that time slot though.
     
  9. i960

    i960

    There's also MHI and MCH minis with reduced commissions (although they're not completely proportionally reduced unfortunately).
     
  10. i960

    i960

    Fun time in A50 land...

    xina50_20150628.png
     
    #10     Jun 28, 2015
    md2324 likes this.