Jump to content

zala

Community Member
  • Content Count

    38
  • Joined

  • Last visited

  • Days Won

    1

Posts posted by zala


  1. I am currently looking at Swedbank AB stock, which has a margin of 10%. 
    The current share price is at 140 SEK.

    D = n x C x i / 365 
    n=amount of stocks,
    c=closing price
    i=market rate +-2.5%
    is the formula that IG uses, with 360 being the divisor for markets that are not British, South African or Singaporian.

    So if wanted to loan a 1000 shares, the daily interest would be;

    1000*140*2.5%-(0.5%*)/360= 7.78 SEK/day?

    Is my calculation correct, or am I wrong when it comes to the market rate?
    Is it STIBOR I should use, the 12 month or how do you calculate this exactly?

     

  2. On 10/03/2019 at 15:07, Caseynotes said:

    @zala, in order to sell to open you must first be able to borrow the asset. What the 'you cannot sell this market to open' message means is that IG can't find anyone who will allow you to borrow it in the first place.

    A similar message you may see is 'this market is unborrowable', meaning there is no liquidity to lend the asset to you for you to open a short (sell) trade.

    Yes, I found their excel-spreadsheet marking which stocks are possible to short and those not.
    However I still don't get why I sometimes get "order rejected" on stocks that are both longable and shortable.

    Any ideas?


  3. 3 minutes ago, Caseynotes said:

    @zala,  just to add, Ole Hansen not only gives regular crop condition updates on twitter but also puts out webinars on all commodities giving insight to short term potential moves. He is chief commodities analysis at Saxo Bank so well worth finding him and his webinars on their web site.   

    Thank you, i'll look into him further.

    I forgot to mention that I look at COT-data for each asset class too, especially commodities.
    But are there any summarizes for important reports/indicators to look at?

    I am really aiming to create a structure around the vastness of the information out there.
    Your crop chart is excellent.

    Trading indices my structure looks something like this;

    1. Are we in earnings-season, January, April, July, October? If not, markets react more on geopolitical developments and on macroeconomic data. If yes, then its more fundamentally oriented and surrounds EPS.

    2. Economic calendar, and the reading of the ViX. A higher volatility environment means a lot of news is hitting the markets, and thus wider stops. A lower ViX means that the markets are trending upwards.  I usually check tradingeconomics.com for this.

    3. Geopolitical developments. Elections, regulatory changes, and black-swan-events etc are used by checking Reuters, Bloomberg, Financial Times e.g. These are often more predominant factors that weigh on markets when there is very little fundamental news.

    That is a rough picture of how I trade.
    Currently I have ventured into commodities as indices show little trending movements due to the uncertainty with the trade wars.

    I however do not have the framework as I do in trading indices when it comes to commodities, so all information is quite new and I am constantly trying to sort out and determine what is important and what isn't.

     

    • Like 1

  4. 6 minutes ago, TrendFollower said:

    @zala, have a look at some of my threads and posts in the Commodities section if you are interested. You will see that most of my posts within the threads are based around price action and the behaviour of the asset price. I do look at fundamentals in the sense of understanding why the asset price is moving the way it is. What is the reason behind the move and what story the price action is trying to tell.

    I think if you just pick a few commodities that really interest you in terms of trading. Don't pick too many but just a couple of even one. Then just follow the price action daily. Follow it on your phone, follow it at home on your desktop. Follow it in the lounge on your tablet. 

    TrendFollower Tip: Identify a commodity which breakouts to the upside to keep things nice and simple. Maybe it has gone above its 20 day moving average. Look for one that you can trade with the trend and that the balance of probability and odds of success are in your favour. At the same time research online to see why the move is occurring. Start of with a small allocation of capital to the trade. Don't worry about making a loss or failing. Get a feel and live and breathe the commodity you are trading. Remember set a stop loss so you know your exit price and maximum loss before you even enter the trade. Once in profit then set a trailing stop. Do not exit unless there is a clear trend reversal. If the price keeps going up then think about adding to your position. This is the best learning. If the trade fails and you make a loss then learn why you think the trade went against you? What could you have done differently. If you cannot identify a trade then do not enter open a position. Wait patiently until a trend emerges in a commodity that you feel comfortable trading. 

    @TrendFollower

    I am an avid reader of your threads as you seem to know your stuff. However, I am way more fundamentally oriented and use volatility based stops as an e.g. and fundamentals for entries of specific asset classes.

    Usually I always check tradingeconomics.com for trading macroeconomical/fundamental indicators as to gauge how the economies are doing for the underlying assets that I trade, in this case usually indices such as the SP500.

    I follow the inbuilt Reuters feed that IG added into the new platform - an excellent feature and my compliments to the development team that it added them.

    My aim is to try to get a top-down view of commodities markets, with preferably a site where I can see - all- the important fundamental parameters/indicators for commodities, like tradingeconomics.com but for commodities.

    The inbuilt feed provides live updates, but it'd be very nice to have it visually displayable how reports change from date to date like it is shown in tradingeconomics.com.

    @Caseynotes suggestions are excellent, and it is exactly for that type of information I am looking for. 
    Currently I am in the dark as to what indicators are the most important fundamentally for various commodities whereas I am very well versed when it comes to indices.

     

    • Thanks 1

  5. 1 hour ago, Caseynotes said:

    So that call went wrong very quickly. Dax immediately dropped to challenge and break support on the London open and is now in the middle of a congestion zone the bottom of which is around 12290. Not dull at all but not clear what it's going to do from here.

    1828507351_GER30()H1.thumb.png.e01dbc59290d14ff08bde00f0ac7fdb5.png

    I got stopped out yesterday at the SP500 after going long, I re-entered now.

    Given the political news oriented around the tariffs, and the positive sentiment on a Canadian deal and solid fundamentals in the U.S. I only trade long, and enter long positions when the VIX shoots higher.

    DAX and the E.U. is a different beast when it comes to GDP growth versus the U.S. with core inflation at 1%.

    • Like 1

  6. Dear @NadelinaIG.

    Guaranteed trailing stops serve the purpose of protecting one's capital in terms of trading on a swing-term basis.
    It prevents unpredictable market gaps that could erase substantial gains.

    Options for both trailing-stop-limit orders and guaranteed-trailing-stop-limit orders should exist as it increases the universe of possibilities in terms of executing proper risk management.

    • Like 3

  7. On 7/30/2018 at 5:06 PM, JamesIG said:

    So the primary reason for this is the legacy code which means the two different stop types follow different logic paths in the deal flow. We have raised this previously as a discussion topic for our core dev team, however at the moment unfortunately it's just not a priority given the client request to dev time required to change 'ratio'. At the moment regulatory change, Mifid II, ESMA and new products have taken up our time. If there is an update I will be able to let you know. 

    Until then you can turn on notifications. When you're limit order is filled you'll be able to edit a trailing stop manually. I appreciate this isn't ideal, however it is the best work around we have at the moment. 

    I see, but it should be included in your functionality.
    Guaranteed trailing stops would be very nice too.

     

    • Thanks 1

  8. On 7/30/2018 at 7:57 PM, TrendFollower said:

    @JamesIG,

    The plus side of this is that it keeps traders in tune with market movements and their trades. The best trades are those which you live and breath. Editing a trailing stop manually with make sure traders are in tune with their trade. I know it is not idea but there are benefits if they want to be taken.

    It depends on each traders individual psychological makeup.
    I do not feel that I am rational when I trade and watch my trades.

    I do planning each weekend, set limit orders, wait until they get executed and then oversee them a couple of times a day.

×
×