Trading the Nikkei with the NKD

Discussion in 'Trading' started by Susannah, Oct 27, 2008.

  1. Sorry, the amount/tick that I posted was for the HSI, Hang Seng.
     
    #11     Oct 28, 2008
  2. just my whacko opinion here:


    It is not hospitable to modest accounts and/or newer traders and might well be lethal in this volatility. Possible problems would be the relatively large tick, spreads, sluggishness reacting to news, lack of an underlying index that is open, low volume, etc. "Noise" on this contract could be 2-300$ of your money per contract. Longer timeframe trades raise the possibility of being "trapped" when NKD is closed plus Japanese markets are typical of other Asian markets in being more volatile and having elevated sensitivity to currency issues.

    The reason to use it should be part of and grounded in a primary focus on the Japanese markets - not the US markets.

    Alternatives are the EWJ etf but you've got to buy a god awful lot of shares.
     
    #12     Oct 28, 2008