Have you been in a trade when the CME went down?

Discussion in 'Index Futures' started by xtrhvydty, Feb 13, 2008.

  1. How do you know that the CME has actually gone down and it is not a problem with your platform? I asked TOS and they said they send a notice, but it is not instantaneous. If I knew the exchange was down, I would hedge the position beyond the stop with options.

    My game plan is to place a option hedge if the stop does not confirm that it executed for any reason. If this option trade fills, then I assume that the platform is fine and the CME exchange is down. If the CME stop kicks in, then I remove the option hedge.

    I deem this the best way to minimize the loss, but I am curious if there is a real-time monitor on the web which posts the status of the CME.

    kind thanks.
  2. p.s. I know there is a number to check status of halts but I am still interested in an instantaneous montor:

    United States and Canada
    866-9-GLOBEX or
  3. I just made a simple script in eSignal that checks the prints coming off the T&S against another instrument. It generally works and lets me know within 15 seconds or so if its down.

  4. mrbud


    That's a good question. We used to hedge the CME with CBOT and vise versa. Now they are one. I imagine they are still in seperate buildings, but it is nice to have a hedge with a separate exchange just in case CME goes down.

    The DIA's and SPY's are good, but they require too much cash tide up in a separate account just for insurance purposes.

    I believe one mini ES contract is equal to 500 shares of SPY.
    This would mean that if you want to hedge against one mini ES contract, you need approx $86,000 {500x $136.00} available just to hedge one contract.

    Is this correct?
  5. i was also wondering about how to hedge if CME goes down...does anyone know?

    i am aware of FDAX but its valued about 5 times as much as ES/YM - so not really an option if someone is trading less than 5 contracts. anything better available?
  6. How about using proshares?
  7. smalls


    not everyone can use this solution but, have a broker you can call to get orders done.
  8. you can hedge globex contracts with floor contracts, for example two ym equal one indu (10 dollar floor contract).
  9. Chriz


    There is the Eurostoxx 50 future aka FESX, which has a multiplier of 10 and is about $55.000 per contract.

    No thats not correct, 500x136 is $68.000. :D Depending on the broker you dont need all of this amount in your account because you can buy stocks on margin. At IB its 4:1 so you 'only' need about $17.000 to hedge one ES.