Forex (Currency) Futures

quinn123 · 7 January 2011

I'm looking into currency futures that are traded on the Chicago Mercantile Exchange (CME). The futures contracts not spot forex.

People are trading the Spot forex market at all hours of the day and night (24 hour market); this is not so with Forex futures. The higher-volume time to trade is the U.S. day session, from early in the morning until approximately 2:00 p.m. CT. Outside those times, a substantial drop-off in volume occurs, especially overnight.

Is the liquidity (volume) too low to trade forex futures during the Australian daily hours?

Also if anyone knows of any other futures contracts which are liquid during Australian hours I am very interested. So far I have the SPI, HSI, DAX, FTSE.

Cheers,

Quinn

Alpha_Bet · 8 January 2011

Re: Currency futures. Liquidity is fine Australian/Tokyo hours. Spread can occasionally blow out couple pips.For my style of trading, when trading Asian session I don't trade more than 5 contracts due to possible slippage. Euro/US session 10 contracts is comfortable.

You will have evening opening (Australian EST) for English/Euro Indexes. DAX (FDAX) can be a wild beast if you are new to trading.
The DAX's big brother DJ EURO STOXX 50 (FESX) is a good instrument to trade. Think of it as the S&P 500 mini (ES) of Europe.

MACD · 8 January 2011

Quinn123,

Are you talking about the 6E instrument?

This is great to trade when the London session starts, and this is a great time to trade as it's from 8:00 pm Sydney time.

IB12 · 8 January 2011

quinn123 said:
I'm looking into currency futures that are traded on the Chicago Mercantile Exchange (CME). The futures contracts not spot forex.

People are trading the Spot forex market at all hours of the day and night (24 hour market); this is not so with Forex futures. The higher-volume time to trade is the U.S. day session, from early in the morning until approximately 2:00 p.m. CT. Outside those times, a substantial drop-off in volume occurs, especially overnight.

Is the liquidity (volume) too low to trade forex futures during the Australian daily hours?

Also if anyone knows of any other futures contracts which are liquid during Australian hours I am very interested. So far I have the SPI, HSI, DAX, FTSE.

Cheers,

Quinn

Yes liquidity too low.
Only Asian session futures have enough liquidity.
You can still trade, but funny things are more likely to happen.

lindsayf · 8 January 2011

IMO the Dax, Eurostoxx, Pound and Euro be traded with good liquidity and volatility from Frankfurt open for a few hours. But as far as during our 9 to 5, the liquidity on currency futures is too low for these markets.

quinn123 · 8 January 2011

It's disappointing to hear that news

If you want to day trade futures in Australia you basically have two time periods where you can trade because of the liquidity:

Day Session (SFE and HSFE):8:50am -3:30pm SPi and 11:45am-6:10pm HSI

and

Night Session (EUX and EEI): DAX, FESX & FTSE100 from 6-12pm for night session.

It's not going to be healthy (or positive for your trading results) if your trading from 9am-12pm. So you would have to split it between two sessions, and take a rest in the middle. Something like 9am-3:30pm trade the SPI and HSI then 6pm-10pm trade the DAX, FESX & FTSE100. (10 1/2 hours day - probably too long)

I really think its best to have a set time when your trading, then you stop.

Maybe forex is a better option, if its going to be more liquid during aussie day hours? Is it more liquid? Anyone have experience? I have just heard bad things, like its not regulated, moves happen at any time etc, etc. I suppose it becomes irrelevant if you can't make money in that market.

Apparently Gold and Oil on Globex are somewhat liquid during the Aussie day session but I'm not certain on this?

Thanks,

Quinn.

Alpha_Bet · 8 January 2011

Trading is not a 9-5 wage slave job. You choose the hours. You can sit down and make big figures in minutes. Flip side is you can sit in front of the screens for dawn to dusk and be down big figures. You set the boundaries.

Greater liquidity in FX Futs aussie day session compared to Gold & Oil.

I would not trade Forex. Trade a market that is properly regulated.

Get a demo from a Futures broker and take a look at these markets you talk about.

I mean this with no offence, the markets will not be the problem...

IB12 · 8 January 2011

Alpha_Bet said:
I would not trade Forex. Trade a market that is properly regulated.

FX futures and forex are pretty much the same thing in terms of movements and reactions to fundamental data. It's just one is always on and the other isn't.
You can adjust your position sizes easier with Forex.
Having access to both, I haven't notice any difference. Overlay 6E with EURUSD and you get the same thing really.

quinn123 · 8 January 2011

Alpha_Bet,

That's what I meant; you should have set hours where you are looking for your setups i.e. trading. That doesn't mean slaving behind a computer screen like you said or actually placing any trades if you don't see any. You have to set boundaries, you can't just trade whenever, or go looking for trades, like your looking for something to do if your bored. If you do, bad things will usually happen.

I'm just going to specialize in the futures contracts I've stated above, and see how I go.

Cheers,

Quinn

Alpha_Bet · 8 January 2011

IB12 said:
FX futures and forex are pretty much the same thing in terms of movements and reactions to fundamental data. It's just one is always on and the other isn't.
You can adjust your position sizes easier with Forex.
Having access to both, I haven't notice any difference. Overlay 6E with EURUSD and you get the same thing really.

I agree. Liquidity is liquidity. The major % of my trades in FX Futures are 3-5 tick/pip scalps. I prefer to see the counter party on my trade,
Swing and position trade with a bucketshop/ECN all you want.

Overlay charts yes. I don't care what price they show, it's what I can hit that matters.

Alpha_Bet · 8 January 2011

quinn123 said:
Alpha_Bet,

That's what I meant; you should have set hours where you are looking for your setups i.e. trading. That doesn't mean slaving behind a computer screen like you said or actually placing any trades if you don't see any. You have to set boundaries, you can't just trade whenever, or go looking for trades, like your looking for something to do if your bored. If you do, bad things will usually happen.

I'm just going to specialize in the futures contracts I've stated above, and see how I go.

Cheers,

Quinn

Set hours and discipline are two different things. Set ups will occur when you are ready. Happy healthy trader is a wealthy one.

One market is all you need.

The road of a successful trader is an enlightening one

-Bevo- · 8 January 2011

quinn123 said:
Also if anyone knows of any other futures contracts which are liquid during Australian hours I am very interested. So far I have the SPI, HSI, DAX, FTSE.

Cheers,

Quinn

The K200 probably does more volume than all of the 4 above combined.

quinn123 · 8 January 2011

Happy healthy trader is a wealthy one.

Alpha_Bet, your implying 95% of traders are fat and ugly, bold move considering where your posting!

-Bevo-, that's the korean index future contract isn't it? What exchange is that on? What hours does it trade in Aus?

Thanks

Alpha_Bet · 8 January 2011

quinn123 said:
Alpha_Bet, your implying 95% of traders are fat and ugly, bold move considering where your posting!

-Bevo-, that's the korean index future contract isn't it? What exchange is that on? What hours does it trade in Aus?

Thanks

ALL TRADERS ARE STUDS...mirror says so
Good call Bevo. K is KOSPI. Be wary with Nth/Sth tension

-Bevo- · 9 January 2011

quinn123 said:
-Bevo-, that's the korean index future contract isn't it? What exchange is that on? What hours does it trade in Aus?

Thanks

Yeah thats correct you can find all the details on IB website

http://www.interactivebrokers.com/e...?exch=kse&showcategories=FUTGRP&ib_entity=llc

It would open at 10am here in Queensland finish around 4pm I haven't traded it in awhile but for intraday it was my favourite futures contract for asian region and really liquid.
Only problem I had was with converting profit/loss back to base had to convert KRW to USD first then to AUD.

IB12 · 10 January 2011

I must say however,
that at Sydney time 6pm-10pm which is when UK market opens, and US markets have not opened, the liquidity/volume on ES is still higher than the FTSE100/Liffe futures.
Such is the popularity of ES that the volume is still higher when it is trading in off-market hours (i.e. 4am-7am US Est. Time).

The FTSE100 and ES have very similar price action despite ES trading outside of market hours.

IB12 · 10 January 2011

Correct me if I'm wrong, but there's nothing wrong with trading ES (S&P500 futures) or CL (oil futures) at Sydney evening time (i.e. 4am-8am New York time).
Volume is still high compared to SPI200 or FTSE100 futures.

MACD · 10 January 2011

IB12,
IMO, the 6E is better to trade at night (Sydney time) as opposed to the ES.

Better volume, better trends - better trades and more $'s........... so long as you are on the right side of the market!

IB12 · 10 January 2011

MACD said:
IB12,
IMO, the 6E is better to trade at night (Sydney time) as opposed to the ES.

Better volume, better trends - better trades and more $'s........... so long as you are on the right side of the market!

6E has the same price action as EUR/USD spot. You can use both. I like using the spot market because you have more flexibility in adjusting your trade position sizes.

Don't see a huge difference in regulated vs. unregulated, especially if you're a position or swing trader.

Forex (Currency) Futures

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