DAX and Euro stocks trading
- Thread starter Machal
- Start date
So, I am trading Eurostoxx50 now and I have to say... EXCELENT!
Much better then DAX. Can't compare it.
So, thank you again for your tips.
One more question for those, who trade this.
I watch time and sales, big trades are there 100-200 contract, but sometimes I can see really big trades such as 10.000 contracts, big volume spike on charts appears.
Are they from banks, funds, etc? But such big orders dont push a price down ...
Or are those some direct deals?
How can I know, if they buy or sell...?
Can I use them for my trading?
Thank you and have a great day.
Much better then DAX. Can't compare it.
So, thank you again for your tips.
One more question for those, who trade this.
I watch time and sales, big trades are there 100-200 contract, but sometimes I can see really big trades such as 10.000 contracts, big volume spike on charts appears.
Are they from banks, funds, etc? But such big orders dont push a price down ...
Or are those some direct deals?
How can I know, if they buy or sell...?
Can I use them for my trading?
Thank you and have a great day.
I think these spikes in volume do not represent real volume. If anybody trades 10000 estx at market, market should move a lot (generally sizes at each bid/ask are +/- 200 contracts)
I agree and if it does not move price, it does not affect your trading.
I agree. These volume spikes are not "real" because they do not affect the price. This week is expiration (friday) which might be the reason for the more frequent unreal prints. I guess they have something to do with rolling contracts.
Quiet, please explain. If the trade is done interbank (otc), volume would noot appear on Eurex.
Moreover, I don't think that two banks would agree in advance to put a bid and an offer of 10000 lots and quickly hit/lift each other.
Moreover, I don't think that two banks would agree in advance to put a bid and an offer of 10000 lots and quickly hit/lift each other.
Frequently one has "agreed" trades eg a spread trade where one party would for example be selling 1000 march futures contracts and simultaneously buying 1000 june. Obviously there must be a counter party to such a trade so you would see the 1000 lot go thru without it having any effect on the price.
Marathon,
I understand your scepticism. The truth is that these trades Do occur. They are agreed in an OTC way but executed on the exchange. If you think about it it makes sense:
A busy trader works for a bank managing a portfolio of OTC and ETO options. He uses futures to hedge the delta of his portfolio. Currently he is overalll flat but net long 25,000 futures.
Today a asks for an offer for the equivalent of 10,000 OTC put options (eg with 10 years duration at the customers specified strike). Having quoted a price a price for this business our trader finds himself effectively short 5,000 futures contracts. He knows the market is liquid but he's busy and would prefer to just hedge the entire amount in one go without bothering to work his orders.
So, he phones his favourite broker and asks for a price to sell whatever size. Having agreed the size/price they agree to execute the order on the exchange at a specific time. At that time you briefly see 2 orders at the given price before they match off.
Even if that's not exactly how it works its pretty close. I'm 100% certain trades like this happen. Even if you take out the OTC client aspect remember that the OI for ESTX50 options is currently just short of 10,000,000. That's a f*** of a lot of delta that needs hedging....
Q1
I understand your scepticism. The truth is that these trades Do occur. They are agreed in an OTC way but executed on the exchange. If you think about it it makes sense:
A busy trader works for a bank managing a portfolio of OTC and ETO options. He uses futures to hedge the delta of his portfolio. Currently he is overalll flat but net long 25,000 futures.
Today a asks for an offer for the equivalent of 10,000 OTC put options (eg with 10 years duration at the customers specified strike). Having quoted a price a price for this business our trader finds himself effectively short 5,000 futures contracts. He knows the market is liquid but he's busy and would prefer to just hedge the entire amount in one go without bothering to work his orders.
So, he phones his favourite broker and asks for a price to sell whatever size. Having agreed the size/price they agree to execute the order on the exchange at a specific time. At that time you briefly see 2 orders at the given price before they match off.
Even if that's not exactly how it works its pretty close. I'm 100% certain trades like this happen. Even if you take out the OTC client aspect remember that the OI for ESTX50 options is currently just short of 10,000,000. That's a f*** of a lot of delta that needs hedging....
Q1
Machal,
Shop around for DAX quotes. Basically the DAX and Eurostox are much less expensive to trade than ES and NQ. Check out our rates for Eurex on our website. FFastTrade is getting a lot of new traders from Europe to trade LIFFE and Eurex, because we offer extremely low execution rates compared to the ordinary European Broker.
Risk Less
Shop around for DAX quotes. Basically the DAX and Eurostox are much less expensive to trade than ES and NQ. Check out our rates for Eurex on our website. FFastTrade is getting a lot of new traders from Europe to trade LIFFE and Eurex, because we offer extremely low execution rates compared to the ordinary European Broker.
Risk Less
Quote from Machal:
Nice day to all!
Is there anybody, who trade DAX future or Euro stocks?
I am from Europe, so I am looking something for trading in the morning. I was looking at charts and those are my first observations:
1) DAX future, very expensive, large spread when breakouts, breatdowns occur...
Is for DAX any instrument like QQQs are instead of NQ?
2) Stocks. I have paid for Esignal data, you have to choose which stock and market do you want to see, so I have choosen XETRA.
It seems to me, like small liquidity there. May be I am looking at bad stocks.
Thare are favourite stocks for daytrading in US, so are there any at Germany too?
I am just trying, so excuse me for these simple questions.
Thank you for your answers and have a great weekend!