Big Mike's Trading Forum
 

Go Back   Big Mike's Trading Forum

> Trading Forums > Traders Hideout > Beginners and Introductions


Notices
     

Confusion about globex open vs pit settle
Started:October 6th, 2010 (09:48 AM) by nepenthean Views / Replies:1,377 / 6
Last Reply:October 7th, 2010 (10:26 PM) Attachments:0

Welcome to Big Mike's Trading Forum.

Welcome, Guest!

This forum was established to help traders by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

BMT is fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.


You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike
     

Reply
 
Thread Tools Search this Thread

Confusion about globex open vs pit settle

Old October 6th, 2010, 09:48 AM   #1 (permalink)
Trading Apprentice
Phoenix (basically mexico city)
 
Trading Experience: Beginner
Platform: ninjatrader
 
Posts: 13 since Oct 2010
Thanks: 0 given, 6 received

Confusion about globex open vs pit settle

Hello. This is my inaugural post! Great forum. Thank you for having it.

So I am a beginner with a question about my last trade. I went long SI 12-10 at 22.17 carrying over after hours and then closed my position at 22.865 later last night. Inasmuch as this is the first time I have carried a position over, I am not conversant with the intricacies of what goes on during settlement since I usually get up at 4am arizona time to scalp before work.

What happens during settlement? The contracts are not liquidated and then 're-entered' when globex opens are they? It seems that would spike volume on the open.

Thanks in advance! Sorry if the answer is sadistically obvious. You have to start somewhere, you know?


Last edited by nepenthean; October 6th, 2010 at 10:08 AM.
Reply With Quote
     

Old October 6th, 2010, 09:48 AM   #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

     

Old October 6th, 2010, 03:05 PM   #3 (permalink)
Market Wizard
Berlin, Europe
 
Trading Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Instrument: Keyboard
 
Fat Tails's Avatar
 
Posts: 8,377 since Mar 2010
Thanks: 3,940 given, 19,577 received
Forum Reputation: Legendary



nepenthean View Post
Hello. This is my inaugural post! Great forum. Thank you for having it.

So I am a beginner with a question about my last trade. I went long SI 12-10 at 22.17 carrying over after hours and then closed my position at 22.865 later last night. Inasmuch as this is the first time I have carried a position over, I am not conversant with the intricacies of what goes on during settlement since I usually get up at 4am arizona time to scalp before work.

What happens during settlement? The contracts are not liquidated and then 're-entered' when globex opens are they? It seems that would spike volume on the open.

Thanks in advance! Sorry if the answer is sadistically obvious. You have to start somewhere, you know?


You went long Silver 12-10 at 22.17 -> which time zone do you refer to?

Trading Session

All transactions during one session will have the same trade date. If you do not close out a position at the end of the trading session, the position will be carried into the next session. Usually this will lead to an increase of the maintenance margin for this position.

If you buy during today's session and sell after the close of today's session, the buy will be settled with trade date today (settlement tomorrow) while the sell will be settled with trade date tomorrow (settlement after tomorrow).

The trading session for Silver is the Globex session starting at 6:00 PM Est and ending at 5:15 PM Est next day.

Settlement Period

Each futures contract has a specific settlement period. Usually the volume weighted average price over this period is the settlement price. The settlement price is used by the exchange to calculate your profit, loss and the margin requirements to maintain the position.

For Silver the settlement period is from 13.24:00 Est to 13:25:00 Est.

Settlements

http://www.cmegroup.com/market-data/files/CME_Group_Settlement_Procedures.pdf

Reply With Quote
     
The following 2 users say Thank You to Fat Tails for this post:
     

Old October 6th, 2010, 09:36 PM   #4 (permalink)
Trading Apprentice
Phoenix (basically mexico city)
 
Trading Experience: Beginner
Platform: ninjatrader
 
Posts: 13 since Oct 2010
Thanks: 0 given, 6 received


Quoting 
You went long Silver 12-10 at 22.17 -> which time zone do you refer to?

Not a time, price.


Thanks for your help.

Reply With Quote
     

Old October 7th, 2010, 12:46 AM   #5 (permalink)
Elite Member
Boca Raton
 
Trading Experience: Advanced
Platform: NinjaTrader, Multicharts, CQG, QST, SierraChart, TradeNavigator
Broker/Data: Optimus Trading Group/Rithmic
Favorite Instrument: Futures
 
mattz's Avatar
 
Posts: 844 since Sep 2010
Thanks: 565 given, 918 received


Fat Tails View Post

Trading Session

All transactions during one session will have the same trade date. If you do not close out a position at the end of the trading session, the position will be carried into the next session. Usually this will lead to an increase of the maintenance margin for this position.

If you buy during today's session and sell after the close of today's session, the buy will be settled with trade date today (settlement tomorrow) while the sell will be settled with trade date tomorrow (settlement after tomorrow).

The trading session for Silver is the Globex session starting at 6:00 PM Est and ending at 5:15 PM Est next day.

This is an extremely useful info. This also implies that on your statements for that day, you will see on the long @ 22.17 and the next day's statement will show the exit as well. I am referring to the Equity Run, not what your platforms shows.
This is where platforms showing and statements confuse traders.

PM with any questions about optimusfutures (800) 771-6748 (561) 367 8686. THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES TRADING.
Reply With Quote
     

Old October 7th, 2010, 02:52 AM   #6 (permalink)
Market Wizard
Berlin, Europe
 
Trading Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Instrument: Keyboard
 
Fat Tails's Avatar
 
Posts: 8,377 since Mar 2010
Thanks: 3,940 given, 19,577 received
Forum Reputation: Legendary


nepenthean View Post
Not a time, price.

Thanks for your help.

This is an example of cultural bias and anchoring as well.

Cultural bias: Down here the time 10:17 PM would be referred to as 22.17 h.

Anchoring: Market close of US index futures in CET (Central European Time) is at 10:15 PM or 22.15 h. So if I see a number like 22.17 this should be shortly after the market close of US index futures and cannot be the price of silver futures . I do not trade silver futures.

Why do I write this here? Because anchoring is powerful driver of our behaviour and is ever so present in trading, whether we like it or not. Anchoring prevents us from entering a long position if price has increased, as we still have in mind the prior price, which was lower. So it suggests to sell after price has increased not to buy. Anchoring is the mother of all mean-reversion and counter trades .

Reply With Quote
     
The following 3 users say Thank You to Fat Tails for this post:
     

Old October 7th, 2010, 10:26 PM   #7 (permalink)
Trading Apprentice
Phoenix (basically mexico city)
 
Trading Experience: Beginner
Platform: ninjatrader
 
Posts: 13 since Oct 2010
Thanks: 0 given, 6 received

Interesting, thanks.

Reply With Quote
     

Reply



Tags
beginner, close, contracts, data, dow, equity, european, exchange, exit, futures, globex, index, index futures, margin, market, mind, ml, open, period, platforms, price, profit, question, scalp, session, silver, spike, start, thank you, time, trade, traders, trades, trading, volume, zone
     

Big Mike's Trading Forum > Trading Forums > Traders Hideout > Beginners and Introductions > Confusion about globex open vs pit settle

Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Globex High Low spinnybobo The Elite Circle 6 September 11th, 2011 04:45 PM
JPMorgan pays $228M to settle bid-rigging charges kbit News and Current Events 0 July 7th, 2011 01:21 PM
Newbie Confusion - Mutiple Timeframe TraderSU The Elite Circle 5 January 14th, 2011 12:22 AM
Volitility indicator question - Open - Open / open - close / close to open andresimon NinjaTrader 2 September 27th, 2010 12:33 AM
Globex quotes Hapster Traders Hideout 4 November 9th, 2009 09:32 AM


All times are GMT -4. The time now is 04:03 AM.

Powered by vBulletin®
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
SEO by vBSEO ©2011, Crawlability, Inc.
Copyright © 2014 by Big Mike Trading. All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
 
no new posts

Page generated 2014-04-18 in 0.25 seconds with 19 queries on phoenix via your IP 50.19.33.5