So why do you prefer STOXX? Does it fit your trading style better? I'd think that stronger moves > more profit. Regards, MindSabre
True, stronger moves more profit, but if the move is against you more loss. One of my main objectives is to minimize risk.
How scary DAX is? How fast and how large can it move? Is it as scary as HSI? HSI is worth HKD50 (~USD6.5) per 1 point. It may move by 1XX-2XX points (once 3XX) in a matter of less than 1 minute. The cost is ~USD1282 for 200 points. So far, I couldn't find any instrument which can beat this monster, and I am a trader who live with this monster.
No really true. There are many things we have to consider: - volatility -- how much you can capture -- the percentage of success - trade volume (liquidity) - margin (opportunity costs of money) Even if it is a very volatile, it may not be worth trading if it is thin and/or the margin is too high to be effective (in terms of opportunity costs). However if you just trade 1 contract, the trade volume shouldn't matter much unless the market is too thin to even affect the spread and slippage.
It depends on how serious you are. When you practice sim trade, you need put yourself into the scenario. Treat it as if you are trading with real money. I know it may be hard to do, but you will learn much more if you can do so. You will go much smoothly when you trade real. After all, sim trading is a way to prove our strategies work and get familiar with our strategies. When you gain enough confidence, you will stick with your plans even when you trade real. it is because you know your method will work. It is just a matter of time before you profit.
In my opinion exchange infrastructure alone makes DAX (or any Eurex product) less scary than the HSI. Eurex is very solid. Plus, if I remember right HSI actually stops trading to take a lunch break...in my opinion that can be very problematic for most new traders (of course I'm not trying to imply that you're an inexperienced trader since I have no idea). I'm not sure what you're style of trading is, but I typically scalp it for 8 - 12 ticks and will catch a few trades a day for 20 - 40 ticks....every now and then I can catch a 70 point move, although typically you could catch them every few days if that happens to be the style of trading you're looking to do.
What is "Volatility Interrupt"? I think it is something to do with max ups/downs within a day, but the exact amount is unknown. Do I get it right? How long does it halt? And how does the market determine the open? When do we need to switch to next contract?
You are correct it is limit up/down when trading halts. Eurex reps said that the formula is not available for general public. They also said that it happens on average once a year. Not sure how longs it lasts, but if I were to hit it, I would immediatly close my positions right after it reopens and be on sidelines for a day or two. Would be interesting to hear from someone who experienced it. The contract expires 4 times year, March, June, September, Decmeber. You can trade it up until expiration, but I would switch to a new month during last 2 days, it has enough volume by then. redduke
Hey, Jachyra What do you mean by "exchange infrastructure alone makes DAX (or any Eurex product) less scary"? How do they make them less scary? How fast and how large can DAX move? Regarding HSI, there are 2 sessions, 1 in the morning; 1 in the afternoon, which is similar to NIKKEI [but it has 3 sessions]. If you are unable to cope with the lunch-time gap, you should close your position before each session. Recently HSI lunch-time break becomes scary. It once gapped 2XX points between session. It is crazy. But think in the other way round, if you know how to catch these gaps, it can be very profitable. Are you talking about your trading situations in DAX? I'm a trend follower or zone trader. I have no idea about scalping. My impression is scalpers are people who place bids and asks to target for the spread. It looks like you are rather a short-term trader.
Normally how fast and how large can DAX move? I think we should look for the halt day (so we know where the limit is), or look for the maximum volatility (but did not trigger halt). Then we know when we should close the trade before the halt comes. I have no idea on how to deal with such situations. My market I trade does not have such kinds of protections at all. Normally when an exchange halts (not just talking about DAX), how would it open? Will it gap against the previous trend or in favour of? Is the gap going to be small or large?