CME Renminbi Futures

R

RiceRocket

CME just recently launched futures in the Chinese Yuan currency. Has anyone here traded this yet?
I just looked it up today and here are some details:

The December contract is: RMBZ11
Bid: 0.15600
Ask: 0.15800

Tick size is: 0.00001 = $10.00

Initial margin: $1,440
Maintenance margin: $1,200

If you have traded this, is it liquid enough yet, due to being a new product? Is the spread expensive due to the tick size?

This looks to be promising though, an easy way to take advantage of the one-sided trade, with a bit of leverage. It looks a lot better than the Yuan etf's out there, which take a lot of cash to make any kind of profit on the small moves.
 
Quote from RiceRocket:

CME just recently launched futures in the Chinese Yuan currency. Has anyone here traded this yet?
I just looked it up today and here are some details:

The December contract is: RMBZ11
Bid: 0.15600
Ask: 0.15800

Tick size is: 0.00001 = $10.00

Initial margin: $1,440
Maintenance margin: $1,200

If you have traded this, is it liquid enough yet, due to being a new product? Is the spread expensive due to the tick size?

This looks to be promising though, an easy way to take advantage of the one-sided trade, with a bit of leverage. It looks a lot better than the Yuan etf's out there, which take a lot of cash to make any kind of profit on the small moves.
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Open Interest: 436
volume for the day: 3 contracts

Yep, looks liquid enough :D :D
 
Quote from RiceRocket:

CME just recently launched futures in the Chinese Yuan currency. Has anyone here traded this yet?
I just looked it up today and here are some details:

The December contract is: RMBZ11
Bid: 0.15600
Ask: 0.15800

Tick size is: 0.00001 = $10.00

Initial margin: $1,440
Maintenance margin: $1,200

If you have traded this, is it liquid enough yet, due to being a new product? Is the spread expensive due to the tick size?

This looks to be promising though, an easy way to take advantage of the one-sided trade, with a bit of leverage. It looks a lot better than the Yuan etf's out there, which take a lot of cash to make any kind of profit on the small moves.
More...

The spread is 200 wide?
 
I brought this up here as a gift. This will be the most profitable futures trade available for the coming year. China is about to do another major re-valuation upward of the RMB.
 
How does this work? I just bought a Chinese CD from the Bank Of China held in RMB currency. If I were to buy this product is this like an option that expires sorry not familar with this product. Whats difference between buying this and symbol CNY ??
 
Quote from gdtrader:

How does this work? I just bought a Chinese CD from the Bank Of China held in RMB currency. If I were to buy this product is this like an option that expires sorry not familar with this product. Whats difference between buying this and symbol CNY ??
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it's not an option it's a future but the contract does expire. cny is an etn meaning it is an obligation from a counterparty in this case ms saying they'll pay you the performance of the rmb.

i'd stay away from trading the rmb period not only b/c of the lack of liquidity but b/c it's so tightly controlled. there are other fish and currencies in the sea.
 
Quote from RiceRocket:

I brought this up here as a gift. This will be the most profitable futures trade available for the coming year. China is about to do another major re-valuation upward of the RMB.
More...

Maybe the contract has changed or moved exchanges but I have traded RMB futures based on NDF's for years on and off.

I'm afraid that there is no such thing as a free lunch.

The consensus as to the future appreciation of the RMB is already reflected in the futures (aka forward) price.

Buying in such circumstances has on occasion led to large losses in the past when the Chinese have suddenly defied expectations and halted a steady appreciation that everyone was betting would continue.

I would not be at all surprised to see the same thing happen again.
 
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