Hedging ESTX from US

Discussion in 'Index Futures' started by TraderD, Aug 25, 2003.

  1. TraderD


    I am thinking of starting trading ESTX overnight (using automation) in addition to NQ. Need to have few things down, though:

    1. if EUREX goes down, where/with what instrument can I hedge my position using IB? ETF or liquid option contract?

    2. Btw, is EUREX more reliable than GLOBEX?

    3. if IB goes does down, what is good backup broker for ESTX or relevant option contracts?

    Basically, I am trying to replicate my NQ setup (backup broker, and backup instruments/exchanges). Thanks!
  2. TraderD


    Shamelessly bringing this thread up. Periodically people show interest in ESTX, but hedging in case of various breakages in the process was never discussed. I image there are more than a few ESTX traders here, can you share your thoughts on this? Thanks!
  3. I don't hedge, this is probely a better place for this question.

  4. Hedge with the cac traded on monep or the ftse traded on liffe. Not a perfect hedge but is better than nothing.
  5. TraderD


    My questions pertains to hedging in case of broker/exchange failures, not hedging as a style/routine.
  6. TraderD


    Thanks, Zen.
  7. I use Farr Financial for my backup. They charge $20 /rt for futures. Heinous, but they don't charge you for not trading, have a 24 hr phone order desk, and a wide variety of futures products. I'm not sure if they have any European stuff but I know they carry all the U.S. futures. Since I use the backup once in a blue moon, the commission is almost meaningless.

    Advanced Futures also has a phone order desk, but last I looked it was NQ/ES only for futures. Which means it's no good for a hedge when the Globex crashes.