Much tighter spread to start with. Try to derive the spread in the cad future for 20 mil liquidity during US market hours (much worse outside) and let us know what you found.
I am massively short the USD.
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Robert Morse
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Well, it is a holiday in the US, and Sunday evening and Canadian Dollar Futures in the front month have already traded 1463 futures. You do not think he can sell 200? The biggest issue with FX futures on the CME is only the near month trades. I'm sure if you use a broker you can liquidity for 200 futures in one lot or over a day in the back months. Not a big deal.
Yes, I am not saying that one cannot move 20mil through the future. I would need to check but I think to remember that far less than 200 contracts are shown at best bid offer at any time.
All I am saying is that spreads are tighter in cash fx given equal notional. You asked for advantages of cash fx over futures and I gave you one. I have traded cash fx for over 12 years now. The main advantage, I believe, is choice of instruments. I don't want to run my fx book through different channels, but can't express my views via futures, only, because there are just so few instruments listed.
All I am saying is that spreads are tighter in cash fx given equal notional. You asked for advantages of cash fx over futures and I gave you one. I have traded cash fx for over 12 years now. The main advantage, I believe, is choice of instruments. I don't want to run my fx book through different channels, but can't express my views via futures, only, because there are just so few instruments listed.
K
krugman25
You have absolutely no idea what you are talking about, but it is funny watching you think you do. Haha
Hopefully this will be a specific enough call for you: UUP will reach a multi-year top of 27.50 on 01-02-2020 at 0655 GMT and a multi-year low of $19.00 on 10-01-2031 at 12:01 GMT.
UUP is near its 2008 high of 27.19 right now and this reflects formidable resistance. The new US fiscal year begins October 1st, and may be a starting point for implementing new non publicly disclosed policies. We already know the US wants a weaker dollar. I chose the beginning of next year because of some historical trend changes taking place in currencies on the beginning of a new year. In addition, until the US and China resolve their trade dispute, capital may continue to seek safe haven countries such as the US, Japan, and Switzerland. As I understand it, destriero has considerable FX experience and I would be reluctant to take a long term position against one of his major public calls.
Yeah, I wouldn't touch even a 50-lot order in futures. UBS was 100MM-up on the ask.
People, see above. Des is giving you a clue about risk and leverage, etc.
And here I am thinking 100K per 1 lot in an equity index future is enough for swinging. Mreh.
In the sense that a 200-lot at the bid impacts microstructure. It's going to move CAD futures a pip or two and you're not going to get filled. You can lift the offer up to the posted limit in spot and you're done.
I was on about margins since you mentioned futures, and the 50-lot deal. (Many folks do not appreciate the power leverage has, and how it can lead them to ruin. I hope the folks here will get that point, as I get your point about lifting the offer.)
And that is kinda' fun, lifting and dropping bids and offers. You can do it in forward months on equity futures where the spread is the old wild-west, with nary a lot. Place your order, tease the ladder, and watch the MMs follow you. Like a moth to a flame. Nothing like what you do in your arena of options, but it is very very interesting.
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