Markets keep changing. It is not clear whether these participants will stay forever or just passing. My guess would be they will still operate in HK even after Shanghai launchs its own index futures. Being able to operate in more correlated market means decreased risk for them, especially considering the fact that HK and SH are of different trading time and both are of 2 hours lunch break, hedging between these two markets will be a logic thing. Even we individual traders can benefit from this addtional trading oppurtunity ( for diversification). But yes the new participants bring new characteristics to the market. Last night, I looked at a Shanghi_Shenzhen 300 index futures simulation contract listed at China Financial Exchange ( yes, they have been testing this simulation contract for more than half year now ), the recent HSI market adopted quite same charateristics, wide range, ,more frequent intraday ups and downs, and relentless swing if the market has decided what to do. umm. I came to HSI market with the purpose to learn how to trade stock index futures to prepare for the inevitable China's own stock index futures contract, now with 4 years HSI experience under belt, ironically, I suddenly found I may have to transplant something I developed originally for Shanghai-Shenzhen 300 index simulation contract into my HSI trading. Fortunately sgxnk and k200 still performs the same way as they did, o/w I will find myself in totally uncharted waters. Recently I decreased my trade scale by 2/3, partly due to the additional volatility, partly bcz I need some time to figure out how to cope with the unexpected beast
Thanks Red, I trade in Australia so Europe opens around 5pm/6pm. I started day trading on estx50 and bund but I like Asia because at 6pm I can take off for the day for family time. So I'm revving up SPI and SGX for now. Will keep an eye on hsi and see if the swinging dicks leave or choose to trade a less volatility inducing style ... just annoyed that "my" market is disrupted.
Hi Kiwi, i have been on DAX over the last few weeks. How is HSI? Did all this craziness stopped? Thanks, Alex