SGX A50 Index future
- Thread starter soler
- Start date
I trade this. Fill quality is good. Liquidity is very good. It can be volatile at times with some fakeouts. Price action knowledge and sound trading basics are a must. Keep your stops more than a couple ticks away from where you'd normally keep them - it likes to tick you out. Chop and then momentum style. While on the surface it may seem slightly erratic its probably one of the more predictable Asian futures. I'd rather trade this than HSI. Lots of liquidity is coming from ETFs and most likely arbitrage algos. I also watch HSI and HHI.HK while trading it. Seems to settle down for about 1.5-2 hours around Asian lunchtime period and by settle down I mean basically stop moving entirely.
Shanghai (SSE) has an hour and a half lunch that the CN contact on SGX sleeps through..
I remember a while ago the SGX submitted an application (not sure to who, probably the regulators) for FOPs on this future.
I haven’t heard about it since, but since that point with the reduced tick size (2.50 vs 5.00) and the crazy mainland speculation the volume has exploded.
So has the volatility for this index, which could provide some very interesting short volatility strategies – if they provided FOPs.
I haven’t heard about it since, but since that point with the reduced tick size (2.50 vs 5.00) and the crazy mainland speculation the volume has exploded.
So has the volatility for this index, which could provide some very interesting short volatility strategies – if they provided FOPs.
You need to factor volatility in. It'll move 10 ticks quickly so that 1 tick in commission payed is already fairly offset by a move if you're on the right side. It's like the difference between trading ES vs TF or YM. I'm personally still trying I learn all the nuances of this particular contract (XINA50/CN) such that I can minimize entry risk. Even though it may appear small and have a small tick size you can easily lose 20-40 ticks per contract simply by not having the best entry and getting stopped out.
It's a hell of a lot more interesting than anything US markets are doing during that time slot though.
There's also MHI and MCH minis with reduced commissions (although they're not completely proportionally reduced unfortunately).