DAX trading & CFDs

[skyQuake]

Nah, that's the problem. They don't offer that combination of GS and trailing. Other strategies have a lot of spread expense and I need to roll the limits around to boot.

The break of CHF peg is a known event risk but which would still have cost a stack of dough relative to perceived risk deployment even with some reasoned allowance obtained from monitoring the reserve accumulation as would be fairly obvious to watch (unless you work in Everest Capital). Even then, you don't have a great idea of how much becomes too much.

There is so much event risk in FX now that I don't feel great waltzing in with my @**** in the wind and a 'best endeavours' clause as a shield from the cold.

Anyhow, this thread is about DAX even if the issue of the day is Eurozone.

Appreciate you sharing you thinking though. Thanks very much.

You can still 'trail' the stop, but manually. Just had a look at the dax - min stop distance is 350pts away though...

 

[cynic]

Cynic,

How did u go with them. I am interested as I am planing a account with them so i can trade off Ninja Trader but if this crap goes on maybe not.

what reason did they give you?

I'm still awaiting their response.

Irrespective of the legitimacy (or lack thereof) I am most reluctant to continue trading with any broker (OTC or otherwise) that chooses to conduct itself in that manner.

I just received a response from them claiming the correctness of their Germany 30 pricing during that price spike.

As they did not offer any explanation for the price difference between their product and the actual DAX index, I've had to ask again for their explanation of this pricing anomaly.

 

[DeepState]

You can still 'trail' the stop, but manually. Just had a look at the dax - min stop distance is 350pts away though...

Yep, this looks like the way to go. Thanks again.

 

[cynic]

I just received a response from them claiming the correctness of their Germany 30 pricing during that price spike.

As they did not offer any explanation for the price difference between their product and the actual DAX index, I've had to ask again for their explanation of this pricing anomaly.

Question: When isn't the DAX index the DAX index?

Here's an answer that I just received in response to a similar question:

...trading platforms are derived from our select group of liquidity providers, and hence, cannot be compared to the pure market prices displayed on the websites you have mentioned. This means that the prices between these two sources may sometimes display significant differences, as occurred in your situation.
...

 

[Wysiwyg]

Question: When isn't the DAX index the DAX index?

Here's an answer that I just received in response to a similar question:

Once bitten, thrice shy is an apt saying.

 

[cynic]

Once bitten, thrice shy is an apt saying.

Indeed it is!

I just glanced at some of their product documentation and discovered (amongst other things) the following statement:

A CFD broadly replicates the price movement of the underlying asset i.e. If the price of the underlying asset changes, so will the value of the CFD.

 

[Wysiwyg]

In my case where there was an extreme spread blow out, the "liquidity provider" was also to blame.

 

[Joules MM1]

ratios on dax both cash and cfd

live positions

the risk is immediately above the ratio, sizing according to
price structure (impulsive or corrective chop)

 

[Joules MM1]

note the yellow levels move inline and conducive to price discovery, they perform two basic balancing tasks:
do they confirm more of the same (direction) or are they non-confirmative

the system is only linear to dynamic price ......so long as the ratio is of price and not a summation of price then the ratio can never be false in the same way that price is never false in it's print yet price can be false in the intent within the print, when the price and the ratio move away from each other then the intent of price is revealed.....it's a way of calling bullsh!t on yourself in your own summation of what is going on.....hence, balance!

 

[CityIndex]

Despite failing at its previous attempt, the German stock index could still be on course for a record high if it can hold support at the current level.

The DAX shares an extremely strong positive correlation with the Dow Jones, and was on track to follow it to a new record until last week’s FOMC minutes spooked the market.

The index has pulled back significantly since then, and now trades along its 50-day EMA and a key support level. However, it could still benefit from a rotation out of overvalued growth stocks, and into blue chip companies better suited to higher rate environments.

Will the DAX manage to bounce and hit a record close before the end of the month?