DAX Help Questions

Discussion in 'Index Futures' started by RedDuke, Feb 16, 2006.

  1. RedDuke



    I’m intraday forex trader and currently looking into adding DAX as my other trading instrument. Based on what I read in/out commission is around $4 and the spread is 1/2 point. I am curious to find out what kind of slippage I will be looking at if I trade 30-50 contracts at a clip. I can only trade during first 4 market hours.

    Also any info on hardships about trading DAX is really appreciated. I currently read everything that I can find on DAX on this and other message boards.

  2. I'm curious if you understand the volatility that the DAX has and what kind of value you will be trading while using 30-50 contracts. That is a lot for the DAX. Depending on how you plan to place your orders, I think you will have to be patient when trying to get filled on 30+ contracts. The DAX is not very liquid and can move quite aggressively. At 30 contracts, you would be looking at 375 Euros per tick. That has a notional value of 4.35MM Euros or US$5,176,000.
  3. You can get commision for much cheaper then $4 a rt, like the mid $2's and if you do volume under $2

    Slippage depends on how active the market is and when you are try to get the trade off. If the market is running and you want to buy 30 lots on a market orders it can cost you anywhere from 2 ticks to 3+pts. If you try to get 50 off on a market order durring the european lunch time expect at least 2-3 ticks of slippage if you don't have any size to hit. Usually in the first 90 min you can get 50 off pretty easily as long as you are not chasing the market.
  4. RedDuke


    Thanks for this info guys, it will be a while before I will do such volume, Will paper trade to test waters and then 1 contract for quite some time. But my goal is obviously to trade volume.

    One of the rules which I have when I trade forex is to be flat before news come out, GDP, interest rate decisions, ZEW and so on. What news do I need to watch for when trading this instrument?

  5. Pretty much the same announcements in addition to earnings on the DAX components such as Siemens, etc. Go to www.dailyfx.com for a calendar of events.
  6. RedDuke



    This is where I get my weekly news calendar. Can you please elaborate on where I can see corp. news that reflect DAX. Is there a central hub somewhere?

  7. I haven't found a good website for Corporate news. Fortunately, you can sign up with the individual companies and you will receive their press releases. Another route is to use Bloomberg for earnings data.
  8. RedDuke



    DAX consists of 30 companies, and following all of them would be major info overload for me. I trade on short term basis from few minutes to 1 hour (forex). 1 hour is quite rare for me. I plan to trade DAX on sort term as well. My concern is to be out when news that can effect DAX are due to come out.

  9. The reason I suggested the press releases is so that you know when earnings or major announcements/calls are due. The rest is just knowing what econ figures are coming and what time. The best thing you can do is make sure you have a good news service if news is a concern.
  10. When u guys trade the DAX what time do you,ll trade the DAX
    Or what time does it open and close
    I am new to all this ( Future )
    Just trying to gain some knowledge : )
    Thank you
    #10     Feb 17, 2006