Chinook's EUR/USD (E/$)Mumblings
- Thread starter chinook
- Start date
I trade the futures but not in the pits and often not on Globex. Many of those Globex prints are bullshit. I had a stop to sell futures at 1.2180 and the low was 1.2171. I DID NOT get filled on my sell stop. The reason is that I work them "EFP" or Exchange for Physical with a dealer desk. That means that I am really doing a cash trade and the dealer is converting it into a futures contract for me. The cash market did not trade anywhere near the level that 1.2171 or 1.2180 would have been done and as a result, I was not filled on my stops. The futures market has an exact relationship to the cash market. Currently, the spread between cash EUR and the Dec. futures is 8.5 ticks. There is not enough liquidity for me to do my size generally on Globex or on the floor. Sometimes, when the markets are quiet and I am initiating new positions, I will use Globex.
I get screwed by these extra Globex spikes once in a while. The way I trade (usually without close targets), I can't use them to my advantage. I adjust my stops looking at the cash market but then the sometimes futures overshoots and gets me.
I'm confused now. Why don't you trade the spot during regular hours all the time? Why does the dealer keep on converting spot into futures? And these are not the "official" CME futures (not your Globex trades) as I understand?
Chinook
Well, we saw some good volatility after the US markets opened, although it seems to have cooled off a little now. It seems to be testing range bounds quite actively.
I trade EuroFX futures and there are some negatives to trading very large size since you will get reactions to size with the open book and transaction data including size, but I still prefer it over a regular spot FX dealer. Sizes up to around 50 contracts (50x USD 125 000) seems ok to in most markets. You get some slippage in asian session though. I'm still on september futures as they're quite liquid and very glues to spot right now, but I will switch to the december contract on sunday - where variations around spot is greater, obviously.
I think we'll break the range the last few hours before the end of the day - most probably to the upside of 1.23 ...
Running those stubborn stops seems to have been the theme lately.
I trade EuroFX futures and there are some negatives to trading very large size since you will get reactions to size with the open book and transaction data including size, but I still prefer it over a regular spot FX dealer. Sizes up to around 50 contracts (50x USD 125 000) seems ok to in most markets. You get some slippage in asian session though. I'm still on september futures as they're quite liquid and very glues to spot right now, but I will switch to the december contract on sunday - where variations around spot is greater, obviously.
I think we'll break the range the last few hours before the end of the day - most probably to the upside of 1.23 ...
Running those stubborn stops seems to have been the theme lately.