who is trading Japan?

Discussion in 'Technical Analysis' started by man, Jan 9, 2003.

  1. man


    I consider doing some technical research on NK225 stocks. I have absolutely no experience with this market.

    my key points
    1. shorting happens via the exchange itself - is there an uptickrule?
    2. brokerage: who are the best?
    3. commission?
    4. how many intraday stocks for daytrading?
    5. any strange or remarkable things about the market place?

    anybody able to support?


  2. What do you have experience with and why do you want to stop trading what you know...

    just so that you can start trading something you have absolutely no experience with trading?

    Please don't reply by saying you want broaden your horizon :cool:

  3. You can trade the NK225 futures on Singapore futures exchange, which is a very modern, high tech operation. The contract is pretty liquid.
  4. I don't know if it's still the same but I remember brokerage on japan stocks being fixed at very high levels with all the brokers. I don't know at what levels but say on US a deal costs you $10, in japan it would be something like $50 or $75. Maybe have a look at ETrade, I think they do business over there.
  5. zuro

    zuro Guest

    Good things:
    There is no uptick rule in the market so far and several brokers will now give you very good commission schedule ($10 or so for a round trip no matter how many shares you trade)

    Bad things:
    You can trade only one round trip a day for same stock.
    You need to live in Japan to trade the equities because Japanese brokers accept only who has an address in Japan to open an account even at the E-trade Japan. Very low volatility and liquidity, ....etc.
  6. def

    def Interactive Brokers

    couple things (I trade Japan and I'll disagree with the no uptick rule):

    1. Shorting is complicated in Japan. Short sales need to be flagged and you can not send in an order equal to or lower than the last traded price. If your order is already at the exchange, you can be filled at the last price.

    2. Singapore: N225 is open outcry and does not trade electronic during the day session.
  7. man


    I currently trade a pairs strategy on US stocks. portfolio turnover 10 days. about 100 stocks. expexted Sharpe 1.5, one meanreversion strategy with trading horizon 5 days, expected Sharoe 1.0, and one option short strategy, which does not satisfy me too much.
    I am right now starting to test intensively intraday strategies on top 100 US names, beginning univarite, might shift to multivariate.
    Still have not found a convincing strategy using our fundamental database - here we did research with factormodels and sector meanreversion, but as I said, not convincing yet.

    Japan would mean that we might be able to use existing technology to get return uncorrelated to what we are doing now. Spells: reduce volatility = increase Sharpe.

    I think that it is necessary to develop and widen, provided you can manage operational matters well enough. These marekts get fatser and faster. Strategies will pop up and fade out.

    So, unfortunately, my answer is: yes, I want to broaden my (trading) horizon. Tough call anyways.

  8. man


    thank you. I know about the futures side used to do some intraday trades in the Nikkei futures. Currently I am looking for single stock exposure.

    thanx anyways
  9. man


    thank you, that commission would mean bad news for me.
    I will see.
  10. man


    thanks for the info. you know a broker there? commission sounds good to me.
    I was afraid about the liquidity side, this requires further investigation on my side. I currently just want to run a interday strategy trading on the close. So intraday liquidity is not a key issue.
    I wonder about this one roundtrip per day rule. Sounds extremly strange and unprofessional to me. Which market forbids liquidity, which is exactly what you do with such a rule. And its astonishing that the prevent foreigners to enter the market.

    Anyways, thanks for your help. Do you have a name of a broker?

    #10     Jan 10, 2003