Nikkei Futures - OSE? SGX? CME?

[NAsX]

Hi guys,

I've just been looking at some charts for the Nikkei futures, but have come across quite a few different 'versions'. It seems it's traded in 3 different exchange, OSE, SGX and CME?

If someone could give some brief background on this and which is the one that's most traded/popular? I've found that so far I can hardly find any info on the OSE contract apart from the OSE site? I'd thought this would be the most popular seeing its a Japanese index?

Any advice greatly appreciated!

Thanks.

 

[professor_frink]

Hi guys,

I've just been looking at some charts for the Nikkei futures, but have come across quite a few different 'versions'. It seems it's traded in 3 different exchange, OSE, SGX and CME?

If someone could give some brief background on this and which is the one that's most traded/popular? I've found that so far I can hardly find any info on the OSE contract apart from the OSE site? I'd thought this would be the most popular seeing its a Japanese index?

Any advice greatly appreciated!

Thanks.

There are quite a few ways you can get stuck into this beast -

The main game is the big contract on the OSE. This is where all the big boys play. Moves in 10 point increments, 10,000yen per tick.

The OSE has a mini contract, which moves in 5 point increments, and every tick is worth 500 yen. Much better for the retail daytrader(mainly because of the smaller ticksize). I've traded it and it's pretty good.

My preferred method of daytrading the nikkei is the SGX one, moves in 5 point increments like the osaka mini, and each tick is worth 2500 yen. It has extended hours, opens earlier than the OSE products, goes to lunch 15 minutes after the OSE, comes back from lunch 15 minutes before, and is open at night too.

The SGX has a USD nikkei too, but I haven't looked at that one much, not sure how much volume it does.

The SGX also has a mini, which is the same size as the osaka contract(I think). I only had a quick look at it when it was first released, and it was pretty thinly traded, so I didn't pay much attention to it. Not much point when the OSE mini is so active. Can't imagine the SGX version has taken much volume off them.

The CME product isn't really worth considering. If you want to trade the nikkei, trade one of the Asian ones. there's enough of them

 

[Pager]

The best contract to trade is the SGX version and for all the reason the professor has said, it does plenty of Volume and has good depth plus is pretty cheap to trade, through IB you will pay 300 yen per side, full service between 1000 and 1500.

It will pretty much mirror the Osaka contract when that's trading but moves in half ticks (5 points) compared to that market(10).

Slippage used to be an issue but in recent years particualy since it went electronic slippage has become less although be warned it can still occur but at present I'm finding this market has the least slippage in the region including less than the Spi at present.

the mini is a waste of time IMO, if your going to trade it then go for the SGX contract.

Another contract similar to the Nikkei is the Topix that trades on the TSE, same contract size as the Osaka Nikkei but does the half tick (0.5), that does good volume and IMO is a better contract to trade than the Osaka Nikkei, not many Aussie brokers if any offer it so if you want to trade that then its IB.

 

[NAsX]

Hi guys,

Thanks a lot for the info, they surely have cleared up things a bit

Well it does seem the SGX is the one to go, and the OSE mini (150Y at IB, 1200Y for data) ain't too bad either for a feel of the market!

Thanks again for the replies

 

[professor_frink]

Hi guys,

Thanks a lot for the info, they surely have cleared up things a bit

Well it does seem the SGX is the one to go, and the OSE mini (150Y at IB, 1200Y for data) ain't too bad either for a feel of the market!

Thanks again for the replies

no worries NAsX. Hope you have fun. It's a great market to trade

Another contract similar to the Nikkei is the Topix that trades on the TSE, same contract size as the Osaka Nikkei but does the half tick (0.5), that does good volume and IMO is a better contract to trade than the Osaka Nikkei, not many Aussie brokers if any offer it so if you want to trade that then its IB.

Pager,

how do you find execution speeds on the TOPIX?? I have never traded it, but had head that order execution at the TSE could be rather slow(though this was a fair while ago)

 

[Pager]

no worries NAsX. Hope you have fun. It's a great market to trade



Pager,

how do you find execution speeds on the TOPIX?? I have never traded it, but had head that order execution at the TSE could be rather slow(though this was a fair while ago)

Never really thought about it Prof, so for me isn't an issue, I pick up a bit of slippage sometimes but rarely more than 1 tick (0.5 point).

Have done a silly though a while back when placing a stop, put my stop at 13555 when short instead of 1355.5, i couldn't figure out why it didnt get filled when hit even tried contacting IB to say "why hasn't my stop executed" by the time i realised what i had done t was 1358, so that's my worst slippage but very much self inflicted .