Mexico IPC Index futures
Posted: Sun Sep 14, 2014 1:23 am
As we all know, Equity indices tend to be very correlated with one another. Some people deal with it by trading only the big indices. I try to find as many "weird" and liquid enough markets as I can. I have been on a quest to find some "less" correlated index futures (less correlated with the liquid usual suspects, ES, NQ, ESTX50). SGX offers Taiwan and India futures which tick the box.
Just wanted to ask the collective wisdom here whether anyone has traded Mexico IPC futures? When browsing thru the product offerings on my broker's website I came across the Mexican IPC index futures.
From my observations the past 2 weeks I have noticed the following:
Pros -
At ~1000 contracts a day it is tradable for a small account.
Quarterly roll, so we don't have a monthly headache.
Cons -
Bid/Ask spread can be big. 50 points or above on a 46,000 level index, it's under 0.5% but the gut feel is screaming SLIPPAGES WILL BE BIG!
Contract size of MXP10 per point also means it's a small contract, i.e. will be trading a higher # of contracts to get the same risk exposure as ES or NQ.
Thanks in advance for any advice/pointers/tips!
Just wanted to ask the collective wisdom here whether anyone has traded Mexico IPC futures? When browsing thru the product offerings on my broker's website I came across the Mexican IPC index futures.
From my observations the past 2 weeks I have noticed the following:
Pros -
At ~1000 contracts a day it is tradable for a small account.
Quarterly roll, so we don't have a monthly headache.
Cons -
Bid/Ask spread can be big. 50 points or above on a 46,000 level index, it's under 0.5% but the gut feel is screaming SLIPPAGES WILL BE BIG!
Contract size of MXP10 per point also means it's a small contract, i.e. will be trading a higher # of contracts to get the same risk exposure as ES or NQ.
Thanks in advance for any advice/pointers/tips!