Trading the Transition Between Europe & US Trading Hours John Netto One Shot One Kill Trading, LLC

Transcription

1 Trading the Transition Between Europe & US Trading Hours John Netto One Shot One Kill Trading, LLC Disclaimer: Futures and options trading are speculative and involve risk of loss. The information in this seminar is taken from sources believed to be reliable. It is intended for information and education only and is not guaranteed by the CME Group as to accuracy, completeness, nor any trading result. It is not intended as investment advice, nor does CME Group endorse or support any product or service represented in the presentation. The views and opinions offered by individuals or their associated firms in interactive seminars are solely those of the authors, and do not necessarily represent the views of the CME Group. The Rules & Regulations of the CME and CBOT remain the authoritative source on all current contract specifications & regulations.

2 Welcome to Interactive Brokers! PROFESIONAL ADVISOR HEDGE / MUTUAL FUND Interactive Brokers Group* has completed its 31st year in developing trading technology. With consolidated equity capital of $4.4 billion, our mission remains unchanged: Create technology to provide liquidity on better terms. Compete on price, speed, size, diversity of global products and advanced trading tools. Interactive Brokers Group s headquarters are in Greenwich Connecticut. Its affiliates have offices in Chicago, Switzerland, Canada, Hong Kong, London and Sydney. IB is regulated by the SEC, FINRA, NYSE, SFA and other regulatory agencies around the world. *and its predecessor companies

3 Interactive Brokers Group Highlights "We continue to place great emphasis on gaining efficiency through the use of automation across all of our businesses. - Thomas Peterffy, Chairman and CEO Interactive Brokers and its predecessor companies have been building direct access trading technology for 31 years to deliver real advantages to trading professionals. Interactive Brokers Group currently holds $4.4 billion in equity capital Interactive Brokers has automated every aspect of the trade process in-house, enabling us to offer low commissions and margin interest rates. Trader Workstation provides electronic access to more than 80 market centers worldwide to stocks, options, futures, forex, bonds and more from a single IB Universal Account. With the exception of foreign exchange, we trade only exchange listed products that are cleared through central clearing houses and are marked daily to external closing prices disseminated by the exchanges IB Risk Navigator SM provides real-time market risk management tools, unifying exposure across with multiple report views, for multiple asset classes around the globe

4 Global Market Access Stocks, Futures Options, FX, Bonds, ETF s and Warrants trading from one single Universal Account. American Stock Exchange (AMEX) Boston Options Exchange (BOX) Chicago Mercantile Exchange (CME) Chicago Board Options Exchange (CBOE) CBOE Futures Exchange (CFE) International Securities Exchange (ISE) National Association of Securities Dealers (NASDAQ) New York Stock Exchange (NYSE) NYSE Arca, BTRADE, INET (ISLAND), DirectEdge OneChicago (ONE) Pacific Exchange (PCX) Philadelphia Stock Exchange (PHLX) New York Mercantile Exchange (NYMEX) National Stock Exchange (NSX) Montreal Exchange (ME) Toronto Stock Exchange (TSX) Toronto Venture Exchange (TSXV) New: Mexican Stocks and derivatives Spanish Stocks US Treasury Securities and Mutual Funds Eurex Deutschland (formerly DTB) Eurex Schweiz (formerly SOFFEX) XETRA (formerly IBIS) EDX London Limited (formerly OMLX, Sweden) Euronext Amsterdam Euronext Brussels Euronext Liffe Euronext Paris Euronext LIFFE, London Intercontinental Exchange, ICE (formerly IPE) London Stock Exchange (LSE) Stockholm Fondbors (SFB) Swiss Exchange (SWX, VirtX) Spanish Futures & Options Exchange (MEFF) Italiana Borsa (IDEM division) Hong Kong Futures Exchanges (HKFE) Stock Exchange of Hong Kong (SEHK) (SEOCH) Australian Stock Exchange (ASX) Sydney Futures Exchange (SFE) Singapore Exchange (SGX) Tokyo Stock Exchange (TSE.JPN) Korea Stock Exchange (KSE) Osaka Securities Exchange (OSE.JPN)

5 IB Technology Highlights Market Maker-designed trade management tools optimize your trading speed. Single, multi-product spreadsheet interface provides real-time streaming quotes and quick click order entry. Customized order entry tools to meet specific trading needs Book, Options, Basket, Combo, Spread, Portfolio, Market Depth, Chart, and client Allocation trading modules. Over 40 order types and algorithms for better execution performance within your risk specification. Real-time P&L, margin reporting and advanced Risk monitoring tools for your portfolio. IB Risk Navigator SM provides real-time market risk management tools, unifying exposure across multiple asset classes around the globe. API and FIX connectivity for trading, risk monitoring and transaction booking. Paper trading account with live data and daily statements helps you become familiar with TWS features, test trading strategies and even try new products/exchanges without risking your capital.

6 IB s Trader Workstation (TWS) The Professional s Gateway to the World s Markets

7 Trading the Transition Between Europe & US Trading Hours KC Lam, CME Group Disclaimer: Futures and options trading are speculative and involve risk of loss. The information in this seminar is taken from sources believed to be reliable. It is intended for information and education only and is not guaranteed by the CME Group as to accuracy, completeness, nor any trading result. It is not intended as investment advice, nor does CME Group endorse or support any product or service represented in the presentation. The views and opinions offered by individuals or their associated firms in interactive seminars are solely those of the authors, and do not necessarily represent the views of the CME Group. The Rules & Regulations of the CME and CBOT remain the authoritative source on all current contract specifications & regulations.

8 Forex E-micro Futures Benefits: Trading in a Regulated market Credibility of Quotes & Executions vs. Margined FX Platforms Fully Transparent Markets Investor Protections Counterparty Credit Risk Virtually eliminated by the CME Clearing House Segregation/ Safety of Customer Funds at US-based FCM s Fair & Level playing field for all participants Trade exclusively on CME Globex delivering millisecond response time Standardize Quarterly Rolls vs. Cash Rolls every 2 days For more information, visit 8

9 Forex E-micro Futures Contract Specs Six currency pairs 1/10 th the standard contract size Quoted in Interbank terms E-micro EUR/USD Futures E-micro USD/JPY Futures Contract Size 12,500 euros 10,000 U.S. dollars Delivery Minimum Tick Size USD/EUR (=US$1.25) 0.01 JPY/USD (= 100) E-micro GBP/USD Futures 6,250 British pounds USD/GBP (=US$0.625) Cash-settled E-micro USD/CHF Futures E-micro USD/CAD Futures 10,000 U.S. dollars 10,000 U.S. dollars CHF/USD (=1.25 CHF) CAD/USD (=1.00 CAD) E-micro AUD/USD Futures 10,000 Australian dollars USD/AUD (=US$1.00) Contract Value If USD/EUR= then contract = $16,250 (= 12,500 x $1.3000/ ) If JPY/USD=93.00 then contract = 930,000 (=$10,000 x /$) If USD/GBP= then contract = $9,375 (= 6,250 x $1.5000/ ) If CHF/USD= then contract = 12,000 CHF (=$10,000 x CHF/$) If CAD/USD= then contract = 12,500 CAD (=$10,000 x CAD/USD) If USD/AUD= then contract = US$6,600 (=10,000 AUD x US$0.6600/AUD) Contract Months Last Trade Date/Time 2 months in the March quarterly cycle (Mar, Jun, Sep, Dec) 9:16 a.m. Central Time (CT) on the 2 nd business day immediately preceding the 3 rd Wednesday of contract month (usually Monday), except for E-micro USD/CAD futures which is on the business day immediately preceding the 3 rd Wednesday of the contract month (usually Tuesday). Trading Hours Trades exclusively on CME Globex electronic trading platform: Sundays: 5:00 p.m. 4:00 p.m. Central Time (CT) the next day. Monday Friday: 5:00 p.m. 4:00 p.m. CT the next day, except on Friday - closes at 4:00 p.m. and reopens Sunday at 5:00 p.m. CT. For more information, visit 9

10 Forex E-micro Margins* 1/10 the size of current standard contracts Euro FX (EUR/USD) - (M6E) $ Margin Per Contract Japanese Yen (USD/JPY) - (M6J) 36,450 Yen Margin Per Contract British Pound (GBP/USD) - (M6B) $ Margin Per Contract Canadian Dollar (USD/CAD) - (M6C) 567 CAD Margin Per Contract Swiss Franc (USD/CHF) - (M6S) 513 SF Margin Per Contract Australian Dollar (AUD/USD) - (M6A) $ Margin Per Contract *Margins may fluctuate due to market conditions *Exchange Initial Margin Rates as of 5/02/09; broker margins may differ 10

11 Trading the Transition Between Europe & US Trading Hours John Netto One Shot One Kill Trading, LLC Disclaimer: Futures and options trading are speculative and involve risk of loss. The information in this seminar is taken from sources believed to be reliable. It is intended for information and education only and is not guaranteed by the CME Group as to accuracy, completeness, nor any trading result. It is not intended as investment advice, nor does CME Group endorse or support any product or service represented in the presentation. The views and opinions offered by individuals or their associated firms in interactive seminars are solely those of the authors, and do not necessarily represent the views of the CME Group. The Rules & Regulations of the CME and CBOT remain the authoritative source on all current contract specifications & regulations.

12 Trading the Transition Between Europe and US Trading Hours John Netto President One Shot One Kill Trading

13 Background Author of Book, One Shot One Kill Trading Consultant to buy side and sell side firms Professional Trader Speak Japanese and Chinese 9 Year US Marine Corps Veteran

14 Outline of Course Key Trading Times of the Day What to look for when recapping Europe/Asia Updating Inflection Points for US Trading Hours

15 Key Symbols M6E (Mini Euro FX) M6J (Mini Japanese Yen) M6B (Mini British Pound) M6C (Mini Canadian Dollar) M6S (Mini Swiss Franc)

16 Key Trading Times of the Day Asia Session Open Europe Open US Open Europe Close US Equity Close

17 Key Trading Times of the Day Asia Session Open 8 PM ET Chance to carry over emerging trend from US Equity close M6J, M6A can be focus as well for more regional specific events

18 Key Trading Times of the Day Europe Open European Cash Equity Markets open at 3 AM ET Chance to see which markets are leading and which are following (Risk aversion, US/Europe/Asia Dynamic) Participation tends to increase in Currencies

19 Key Trading Times of the Day US Open 8 AM Sweet spot to be ready for pre-us open trades 8:20-8:30 AM Metals/Energies/Fixed Income open 9:30 AM ET US Cash Equities open

20 Key Trading Times of the Day Europe Close 11:30 AM ET Focus shifts to US Ending sets tone for next cycle Run for last move in currencies Participation tends to lower in currencies

21 Recapping Asia/Europe Identify Key inflection points Understand Sentiment Fibonacci Levels Notes on Price Action

22 Updating Inflection Points for US Trading Hours Fibonacci Levels Key Moving Averages Trend Lines STTR/ RTTS

23 Upcoming Events June 17 Live Trade Along with CQG and ICE July Tentative Trip to India August 2 4 Forex Traders Expo in Las Vegas October 25- Australia Technical Analysts Association Meeting (Melbourne)

24 Question & Answer Period Contact Information: John Netto Interactive Brokers Nicole Cheung T CME Group KC Lam T