ECBOT vs. COMEX(NYMEX) for gold

S

SideShowBob

I moved my silver trading from ECBOT to COMEX(NYMEX) after seeing higher volume there, and I've seen smaller slippage on my silver entries and exits.

I'm considering moving gold over there as well -- can anyone comment if I can expect the same thing? I use stops to enter (exits are limit or market at EOD) and I get the distinct feeling my stops were being run on ECBOT (since stops are native they can be seen). From what I understand about how IB simulates stops on GLOBEX my stops are invisible and thus can't be run (at least not as easily).

I'd appreciate feedback on what others have run into....
 
Personally speaking,
i think it is better to trade Comex,. Comex and Gold is synonomous, Comex has brand name recognition when it comes to metals.

the only reason CBOT even exists in metals is bc they offered a better product with the electronic contract. It started to gain market share.

But even when CMX only offered open outcry, they still had a large portion of the oustanding open interest.

As of yesterday,
CMX OI is 366k
CBOT OI is 38k

after cmx went live on 04Dec on globex, it took a little while but the liquidity SLOWLY started to move back to CMX.

as of today, total volume trades on CMX is 57,915
total volume on CBOT is 52,915 in april. These numbers don't include what traded in open outcry on CMX.


I think this should be enough to answer your question unless someone begs to differ.
 
I switched to COMEX and so far so good. Given the open interest numbers you mentioned it makes me think people are mostly daytrading on ECBOT while holding overnight positions on COMEX. I think either one is actually fine for me -- except for the stop runs. I doubt if I'll ever know if that was occurring if I don't go back to ECBOT....
 
that sounds right, alot of people use cbot for day trading,

the better answer, which is what i do, is that i have both of them up so i can watch them simultaneoulsy, gold and silv

see what the markets do and trade them accordinlgy, every once in a while one of the two markets go down due to the server problem while the cash mkt and the other excahgne keeps moving

so lets say if u have a position in one u can alwasy lock in price exposure on the other exchange and efp out of the cross position at a later time....
 
Quote from ballsofgold:



so lets say if u have a position in one u can alwasy lock in price exposure on the other exchange and efp out of the cross position at a later time....
More...

I had to offset using NYMEX a few weeks ago (MLK holiday) when I got stuck in ECBOT not realizing they were closing early.
Not sure what you mean by EFP out of the cross position -- how do you do that?
 
EFP is exchange for physical,
where you swap a futures contract for cash/spot/phsyical gold

So let's say you are long 100 cmx and Short 100 Cbot

instead of legging 100 lots and taking on risk exposure that way

U can Sell 100 CMX and Buy 10,000 Gold on EFP with CMX

Than Sell 10,000 Gold and Buy 100 CBOT on CHicago

the only thing u will have to do is pay efp costs, which the spreads are pretty tight, and the costs are a known factor
 
just make sure your broker provides "both" exchanges

and perhaps even a backup "pit" option

( i.e. the ECBOT might have gone "down" for 30 seconds
but with comex "up" one had a way to buy or sell gold )
 
Hi,

Sorry, if this is a little off topic, but does anyone know about a Gold/Silver ring squawk service?

NYMEX has this service for Crude and Nat Gas, but I was told by Data Services that there were no plans in the future for the above.

Thanks

G.
 
unless you work at a bank dealing metals on the comex
floor you probably will not get this "squawk box"

a side note ... just saw this headline today

-NYMEX Sets Gold Futures Open Interest Record-
 
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