CNH trading

etbri · Aug 27, 2015

What is the cheapest way to trade the RMB?

On IB I see:
USD.CNH (cash)
CNH (globex futures)
CNH (hkfe futures)

I'm looking to put on around $100K-$1MM USD. I prefer futures contracts due to generally being a cheaper trade to finance versus cash, however the futures seem to have virtually no volume and wide spreads so I am a bit cautious.

What is the most efficient instrument (spreads, financing vs USD) available to trade?

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EDIT:
I just checked and IB charges a rate 13% for CNY/CNH loans. Kind of crazy.

luisHK · Aug 27, 2015

Check the futures as well on Singapore exchange, I knew about the offshore rmb futures but noticed yesterday there iare also onshore rmb futures in usd listed on SGX.
No idea about the volume though

MrBrowser · Aug 27, 2015

CME is also giving it a shot. Not much volume yet, but if you're a long timeframe player it might work for you.

doggyfx · Aug 28, 2015

etbri said:
What is the cheapest way to trade the RMB?

On IB I see:
USD.CNH (cash)
CNH (globex futures)
CNH (hkfe futures)

I'm looking to put on around $100K-$1MM USD. I prefer futures contracts due to generally being a cheaper trade to finance versus cash, however the futures seem to have virtually no volume and wide spreads so I am a bit cautious.

What is the most efficient instrument (spreads, financing vs USD) available to trade?

---
EDIT:
I just checked and IB charges a rate 13% for CNY/CNH loans. Kind of crazy.

Have USD/CNY and newly introduced Shanghai Composite Index at Hotforex, spreads look a bit high for majors but should work for sell-n-hold strategy

etbri · Aug 28, 2015

doggyfx said:
Have USD/CNY and newly introduced Shanghai Composite Index at Hotforex, spreads look a bit high for majors but should work for sell-n-hold strategy

What's the financing rate on the pair?

Cyprus based broker... hmmm.

etbri · Aug 28, 2015

To follow up on my own post it looks like SGX has the best spreads/liqudity. The contract is UC and the trading is most active during asian market hours.

Unfortunately, I don't think I can trade the contract on IB. I get rejected with error "Regulatory Restriction". Strangely it appears I can place an order on GLOBEX for CNH. Not sure why at this point.

xiao bird hu · Aug 28, 2015

Now IB dropped the loan rate to 7.5%. They change the loan rate every day.

doggyfx · Sep 2, 2015

etbri said:
What's the financing rate on the pair?

Cyprus based broker... hmmm.

Yeah Hotforex is based in Cyprus that the sore point of this company for a first view but practice shows the opposite. What do you mean under Financing Rate?