Have you been in a trade when the CME went down?

X

xtrhvydty

How do you know that the CME has actually gone down and it is not a problem with your platform? I asked TOS and they said they send a notice, but it is not instantaneous. If I knew the exchange was down, I would hedge the position beyond the stop with options.

My game plan is to place a option hedge if the stop does not confirm that it executed for any reason. If this option trade fills, then I assume that the platform is fine and the CME exchange is down. If the CME stop kicks in, then I remove the option hedge.

I deem this the best way to minimize the loss, but I am curious if there is a real-time monitor on the web which posts the status of the CME.

kind thanks.
 
p.s. I know there is a number to check status of halts but I am still interested in an instantaneous montor:

United States and Canada
866-9-GLOBEX or
866-945-6239
 
I just made a simple script in eSignal that checks the prints coming off the T&S against another instrument. It generally works and lets me know within 15 seconds or so if its down.

Quote from xtrhvydty:

How do you know that the CME has actually gone down and it is not a problem with your platform? I asked TOS and they said they send a notice, but it is not instantaneous. If I knew the exchange was down, I would hedge the position beyond the stop with options.

My game plan is to place a option hedge if the stop does not confirm that it executed for any reason. If this option trade fills, then I assume that the platform is fine and the CME exchange is down. If the CME stop kicks in, then I remove the option hedge.

I deem this the best way to minimize the loss, but I am curious if there is a real-time monitor on the web which posts the status of the CME.

kind thanks.
More...
 
That's a good question. We used to hedge the CME with CBOT and vise versa. Now they are one. I imagine they are still in seperate buildings, but it is nice to have a hedge with a separate exchange just in case CME goes down.

The DIA's and SPY's are good, but they require too much cash tide up in a separate account just for insurance purposes.

I believe one mini ES contract is equal to 500 shares of SPY.
This would mean that if you want to hedge against one mini ES contract, you need approx $86,000 {500x $136.00} available just to hedge one contract.

Is this correct?
 
i was also wondering about how to hedge if CME goes down...does anyone know?

i am aware of FDAX but its valued about 5 times as much as ES/YM - so not really an option if someone is trading less than 5 contracts. anything better available?
 
Quote from samuelg:


i am aware of FDAX but its valued about 5 times as much as ES/YM - so not really an option if someone is trading less than 5 contracts. anything better available?
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There is the Eurostoxx 50 future aka FESX, which has a multiplier of 10 and is about $55.000 per contract.

Quote from mrbud:


I believe one mini ES contract is equal to 500 shares of SPY.
This would mean that if you want to hedge against one mini ES contract, you need approx $86,000 {500x $136.00} available just to hedge one contract.

Is this correct?
More...

No thats not correct, 500x136 is $68.000. :D Depending on the broker you dont need all of this amount in your account because you can buy stocks on margin. At IB its 4:1 so you 'only' need about $17.000 to hedge one ES.
 
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