very true concerning volume and risk with low volumes.
(my patterns only work when volume is there - so IB 30min <5k is a risky day).
I hope that the Dax Mini will attract more traders - thus volumes can rise...
As for CFD's I am not happy (on IB) with the trading times - especially starting
on official cash hour 09:00 while the future is already trading one hour. Even more
strange is that the after cash hours are traded...
The worst change IB made on CFD for Dax - that it is since half a year having a new overnight (double) margin. Which is making it for me untradeble for swing trading.
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Would be glad if you're the lucky one
As posted earlier, I also use CFDs from time to time. In the past I duplicated trades of the FDAX vs. CFDs (GER30 and GERF30 as well).
Result: On average the original FDAX saved me about 48€ per round-trip per contract/25 CFDs.
Disagree, e.g. because of the effects that minis have in the US. Since the introduction of ES, YM, NQ etc. volume for the respective asset classes
has multiplied vs the time when only the full contracts were traded. And this comparison still holds if you consider the massive decline of trading
volume during the last year(s).
So I rather expect a decline on the CFD side which results in market adjustments and wider spreads. Both effects can already be seen since some
CFD dealers inform(ed) their customers about joining up their businesses with other CFD dealers and/or about widening their spreads.
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One CFD provider is different from another one. I have 0.8 point spread 90% of the time and certainly during EU cash open hours bar few spikes, while FDAX has spread about 1.0 point and lately 1.5 point being the norm. Slippage is about 0.2-0.7 point, while FDAX about 0.5-1.0 bar violent conditions. Everything is rounding up to next tick. Problem with CFD is being executed by bid/ask, not by last trade price. So stops getting hit on momentary spread jump, for short term trading it is possible to use soft stop or just give a bit more and manually close. But definitely it is not a solution if you plan to trade over equivalent of 3-5 contracts of FDAX. But then you should not have position sizing problem in FDAX too, and this is a primary advantage of CFDs.
With regards to ES, I think it is a different situation because fat contracts were trading in pit and ES was an electronic 23h globex contract from the beginning. Conditions were quite different.
Trade to live. Not live to trade.
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