Hi, I'm looking for possibility to trade US Dollar Index futures. http://www.elitetrader.com/vb/showthread.php?s=&threadid=14104&highlight=dollar+index I found this thread here, but I would like to hear anyone trade this. I understand there are 2 exchanges to offer this pdoduct, CME and NYBOT(FINEX), and heard NYBOT is more active. I tried to check out the chart, but DX-Z3(NYBOT) and UX-Z3/UD-Z3(CME) are all thin at the chart. ALso I see InteractiveBroker does not have access this product. After all, I'm pretty pessimistic to trade US Dollat Index futures. I guess it's best to trade a basket of bunch of currency at same ratio comprising $index. Appreciated any thought. Thank you.
Smooth - if your time frame is a little longer and you can stand the extra key strokes , yes , doing it spot or even through fwds in the following ratios will give you basically the same thing : DXY: EUR 57.6% JPY 13.6% GBP 11.9% CAD 9.1% SEK 4.2% CHF 3.6% The other obvious advantage of doing it OTC is 24hr tradability. Nice to know you can get out any time. Currencies - the "existential choice". Cheers
I was a exchange employee for the NYBT(The exch in which houses the FINEX). That trading pit was always empty not alot of traders w/ poor liquidity. My advice look to trade other FX products.
The $$ Index contract on the NYBOT is not the best to trade. The slippage can be huge! Try the CME/IMM Euro dollar contract.