I would say that anyone trading during the Asian session should consider kospi options. A rough guess would be that the near month at the money options trade about 1000 contracts a minute. I have found that it nicely "obeys" support and resistance levels, with a few wicked outliers everyone and a while.
Overnight gaps do not influence daytrading, but lunch break gaps do. And for HSI , it is different with US indexs. I think US index futures markets are traded continuously throughout the day, (or are they ?) So if you have a position on , with a stop order, your risk is limited and you can go out for a nice lunch. But HSI is not continuously traded, even if you have a stop order, if NIkkei has a dramatic trend in the opposite direction of your HSI position, you may find the opening price of the afternoon session of HSI is well beyond your stop order, the risk is further extended considering the possibility of a terror attack during the lunch break. But again, if you have an statistically good edge and sufficient capital, those unfavorable lunch break gaps will not beat you in the long-term.
never noticed much gappin' durin' sgxnk break; maye 30points or so...never saw much more than that...looks pretty smooth to me; besides u only need to close your pos at 3:15am[european time] and u avoid 'em.
Ahh...last night ( wednesday) was nice in the HSI By the way - can anyone recommend a suitable backup broker for the Asian futures markets ? At least for HK and SGX ? So far, IB has been good to me, knock on wood, but you never know...
What good is a backup broker? If you place your stops and limits almost immediately after your fill then they are probably useless.
Yesterday is not bad, but today is my best day since 2004 400 points profit per contract for daytrading HSI, it's like dream
By the way, you can trade SGXNK and HSI at the same time. This is my way of hedgeing the risk of unfavoralbe HSI lunch break gap. Because you can see that as Kiwi said, every dramatical HSI lunch break gap follows a dramatic intreday trend/reversal of Nikkei