JGB trading anyone?

Discussion in 'Financial Futures' started by svrart, May 11, 2005.

  1. svrart

    svrart

    Hello all,

    Has anyone traded the Japanese 10year bond futures on the Singapore exchange? If so, any experiences?

    Tx.
     
  2. I believe all the liquidity is on the tokyo stock exchange, could be a better place to trade it.
     
  3. svrart

    svrart

    The one in Tokyo is full size - 10 times the Singapore one, I believe.

    "If I had that kind of money I would have moved out of my parents house by now ! ":D
     
  4. def

    def Sponsor

    the singapore markets typically have 200 - 300 contract markets per side. it typically is the same to 1 tick wider than japan.
     
  5. Yup, I track the Singapore mini-JGB using CSI data (which assigns it the symbol "SJB") and I trade it at Manfutures. Just for jollies I have my automatic trading software also track the fullsize JGB (10X as large, traded in Tokyo) and I apply the same trading system to the SJB and JGB. So far they've given the exact same signals on the exact same days, several dozen times. Pull up both charts: SJB is pretty much identical to JGB.

    Last week was Golden Week holiday in Japan (but not Singapore). Nevertheless the mini-JGB's didn't trade, because the fullsize was on holiday. My broker said "just like the mini S&P's don't trade when the big spoos are closed."
     
  6. svrart

    svrart

    Entered a trade two days ago.

    Experience -
    Had to transfer some money from USD to JPY. Did it using IB's FX. It was quite straight forward.

    The spreads on the JGB are about 2 ticks. When Japan is trading, liquidity is good, but when it is not, the liquidity is quite poor.

    Other than that no problems. My first foray into Japanese bonds.
     
  7. Xenia

    Xenia

    Why ? And who told you that you need JPY in your account ?
     
  8. svrart

    svrart

    The margin and commisions are in JPY, so I thought I would need JPY. Perhaps, I am wrong.
     
  9. def

    def Sponsor

    Converting is fine but IB will automatically deal with the currencies for you. If you do not carry a position overnight, only your profits (and hopefully not losses) would remain in yen.
     
  10. KK70

    KK70

    def,

    What if there is a loss? For example, my account is in USD base currency. If I incur a loss of say 100 Euros and a commission of 5 Euros by trading ESTX 50, then will the 105 Euros automatically be converted from USD and deducted? If so, at what rate will the conversion from USD to Euros take place?

    Or will the 105 Euros loss show as a debit thereby making my account incur an interest charge?

    Thanks,
    -kk70
     
    #10     May 14, 2005