Best (Cheapest) ways to gain CNH exposure with leverage on IBKR?

B

believezz

I'm not familiar with trading currencies but I'm looking to obtain a sizable position in holding long CNH long term. What's the best/cheapest/most efficient way to do this on IBKR?

1) CNH Futures eats up my margin on IBKR. Almost like 15x the margin requirement of NQ futures (normalized to dollar swing per day using ATR).

2) outright USD.CNH?

3) USD.CNH CFDs - anyone familiar with FX CFDs on IBKR?

Thanks in advance.
 
There are other factors to consider too.

Chinese yuan futures
you can trade it from
CME <<<< volume around zero!
Hong Kong Exchange <<< volume very low! not available in IB
Singapore exchange <<< volume very low!

The whole world is simply not interested in trading yuan futurs.


or you can trade spot forex / fx CFD.
be prepared for a horrific bid-offer spread.
but if you do swing trading, you might be able to accept the horrific
bid-offer spread.
 
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You mean the US is not interested in letting its citizens trade Chinese Rmb. You can set up an RMB cash account with Deutsche Bank in Germany. Same in many other countries. Like always the US is talking a big game about freedom and choices but in reality stifles its own citizens' choices. Can't even trade many foreign index options. There is no law that prohibits American exchanges from offering rmb contracts but the powers to be discourage and stifle any volume. Not for lack of demand but for lack of supply by liquidity providers in the US.
 
believezz said:
I'm not familiar with trading currencies but I'm looking to obtain a sizable position in holding long CNH long term. What's the best/cheapest/most efficient way to do this on IBKR?

1) CNH Futures eats up my margin on IBKR. Almost like 15x the margin requirement of NQ futures (normalized to dollar swing per day using ATR).

2) outright USD.CNH?

3) USD.CNH CFDs - anyone familiar with FX CFDs on IBKR?

Thanks in advance.
More...

Best leverage would be forex (USDCNH). 50x in the U.S. and more if not in the U.S.
Spread is not a problem if swing trading on H1 and above. (Oanda spreads)
If you want long CNH, you'd be short the USDCNH. It's had a pretty big move lower already.
Interest rates in China are 3.7 vs .5 for U.S. so swaps should be positive but better check first.
***Monthly chart below.

USDCNH.png
 
MaxRinger - what are you talking about "be prepared for a horrific bid-offer spread."
this is a live quote from my TWS for spot CNH which looking at for the last couple of minutes has been between 1 and a half to 2 pips wide with trades looking to take place in between the spreads.

Als the HKFE futures also are available (I see 207 futures trading thus far after hours with a market being made 2 ticks wide (albeit 1x2). I don't know real time volume but anyone can check that on the HKEX website themselves if interested.

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How does it correlate with cash fx? I assume the CFD builds in a humongous interest roll over but would need to verify and don't have time to do that right now.

BKR88 said:
Best leverage would be forex (USDCNH). 50x in the U.S. and more if not in the U.S.
Spread is not a problem if swing trading on H1 and above. (Oanda spreads)
If you want long CNH, you'd be short the USDCNH. It's had a pretty big move lower already.
Interest rates in China are 3.7 vs .5 for U.S. so swaps should be positive but better check first.
***Monthly chart below.

View attachment 282582
More...
 
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