Help with getting started on DAX Futures

N

novicefutures

Dear all:

I live on the East Coast of the U.S. and have been trading the ER2 for the past 2 years. The time has come that it has become difficult juggling between a full-time job and trading! I have been reading some articles about the FDax, and the fact that it is the best bang for the buck instrument across the pond. However, I am clueless as to how to get started, considering that I believe you can trade the first two hours (best movement) of European open, which corresponds to around 3:30AM - 5:30AM EST. How would one go about opening a Eurex-based brokerage account? Is there a U.S. brokerage firm that offers Eurex products? (My current broker clears through RCG). How about datafeed for the charts (I currently use TradeStation for charting only)? The only thing that might save my part-time trading career is to look for something like the FDax or some other overnight/overseas products to trade during those odd hours.

I thank you for your help and comments in adavnce.

Cheers, and good trading to you all.
 
Quote from novicefutures:

Dear all:

I live on the East Coast of the U.S. and have been trading the ER2 for the past 2 years. The time has come that it has become difficult juggling between a full-time job and trading! I have been reading some articles about the FDax, and the fact that it is the best bang for the buck instrument across the pond. However, I am clueless as to how to get started, considering that I believe you can trade the first two hours (best movement) of European open, which corresponds to around 3:30AM - 5:30AM EST. How would one go about opening a Eurex-based brokerage account? Is there a U.S. brokerage firm that offers Eurex products? (My current broker clears through RCG). How about datafeed for the charts (I currently use TradeStation for charting only)? The only thing that might save my part-time trading career is to look for something like the FDax or some other overnight/overseas products to trade during those odd hours.

I thank you for your help and comments in adavnce.

Cheers, and good trading to you all.
More...

Interactive Brokers has Eurex and also streaming data feed and 6 months historical data for charts.
 
I'm jumping in coz Im not sure and want to know if usa located traders can access foreign markets, I heard they can't.
Is it true?
 
Quote from Bitstream:

I'm jumping in coz Im not sure and want to know if usa located traders can access foreign markets, I heard they can't.
Is it true?
More...

yes US-based traders can access foreign markets. i trade the DAX (very lightly) and know other US-based traders trade it as well as other foreign instruments.

hth

take care -

omni
 
If you are looking at trading the DAX futures so that you can trade and keep a day job you should consider trading ES (e-mini S&P 500 futures). Often (although I haven't checked for a while) ES will have more volume before 8:30 am than the DAX futures. Since you can also trade ES in the evening as it trades as it trades 22:34 hours a day I think it is a superior trading instrument for your purpose.
 
I will keep this short and simple: the FDAX is close to the worst product to get started in as a futures trader. It is unforgiving and has a high point value and cost (for the retail trader). When you are wrong in the FDAX on a moving market, you can easily lose $800 per contract in a matter of less than a minute.

I'm not trying to discourage you from trading futures, but I would like to make it clear that this is a highly volatile product with a very high tick value. It is great if you have your discipline and plan in place and have achieved consistent profitability. However, it can be a very quick way to give your money away.

In any case, I hope you succeed in whatever you do.
 
Quote from novicefutures:

Dear all:



I thank you for your help and comments in adavnce.

Cheers, and good trading to you all.
More...

IB is probably your best bet. You can feed Eurex data into Quotetracker from IB. I think Eurex data is like 8 euros a mth through IB.

I've looked @ the FDAX myself but I simply cannot trade the US mkt effectively if I get up @ 3am to trade fdax.

It might be a solution for you. there are alot of threads on eurex dax. Check them out.
 
Check out some posts on the subject from velocity trader or PM him. I think he trades the Eurex and Velocity has a good reputation as a brokerage. I believe you're better off with a smaller company specializing in futures though than with IB.

I use Lion's Futures with a TransAct datafeed. I get quicker fills than I did with IB. I don't know what customer support would be like in Euro hours for either, but I was not satisfied with the the response to the few calls I made to Ib during US market time. I have been very satisfied with support I've received at Lion's and Transact. Good luck in whatever you decide.
 
Thank you all for the speedy responses and great comments and suggestions. I will check out IB tomorrow.

As to the suggestion with respect to trading the ES, it is just not for me! I have tried trading it, but I don't think the range and volalitility is comparable to the ER2.

As to the unforgiving nature of DAX, I did not think any instrument could get more volatile than the ER2! But thanks for the info.

On somewhat of a related note, are the tax consequences any different because of the foreign nature/currency of the instrument?

Again, many thanks for your comments.

Cheers,
 
Quote from novicefutures:

As to the unforgiving nature of DAX, I did not think any instrument could get more volatile than the ER2! But thanks for the info.
More...

if on the wrong side of one of its 'wiggles', the DAX will thump you - and keep moving. each point is about 30-32 USD and i think FT71 wrote that the DAX commonly averages a 40-pt daily range or better (and that range reflects a recently reduced volatility). that means about $1200 per lot. just about any ATR on the ER2 is between 8-10pts, which means $800-1000 per day.

oh, and the DAX thinks nothing of producing beefy gaps - intraday :eek:.

the EC often provides some pretty decent volatility and liquidly trades during the times you mentioned. i would apply the same caveats from the DAX to the EC.

hth

take care -

omni

BTW: there is some discussion of the DAX and its movement over at http://www.elitetrader.com/vb/showthread.php?s=&postid=845020#post845020 (the thread about the German Election).
 
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