mundy one real easy way to see the inversion is to simply add
both futures contracts to a quote screen and also add volume. The
closest contract is fine as long as the total volume for that day
is higher than the later contract. However once you start to
see the volume get closer and closer, you know the inversion is
close so best then to change contracts over. Obviously once the
total volume is higher on the later contract you know the inverse
has occurred
for example here's the ES contracts ESZ19 is the current one at
the top, followed by ESH20 for the next one. You can see ESZ19 has
traded 697,181 contracts today whereas the ESH20 has trades 10,714
contracts. Once we get closer to expiration we'll see more
volume start to come into the ESH20 and eventually take over the
ESZ19. Then once inversion takes place the old contract expires in
about a week, so you still have time to get out of it
I think Gold contracts trade month to month but it's been a
while since I've messed with those
When does GCZ19 expire. Then
Posted by mundy on 27th of Nov 2019 at 01:19 pm
When does GCZ19 expire. Then are we on to GCG20?
mundy one real easy way
Posted by matt on 27th of Nov 2019 at 03:00 pm
mundy one real easy way to see the inversion is to simply add both futures contracts to a quote screen and also add volume. The closest contract is fine as long as the total volume for that day is higher than the later contract. However once you start to see the volume get closer and closer, you know the inversion is close so best then to change contracts over. Obviously once the total volume is higher on the later contract you know the inverse has occurred
Thanks Matt, happy Thanksgiving to
Posted by mundy on 27th of Nov 2019 at 06:55 pm
Thanks Matt, happy Thanksgiving to you and your family.
thanks and you too, everyone!!!!
Posted by matt on 27th of Nov 2019 at 08:09 pm
thanks and you too, everyone!!!!
for example here's the ES
Posted by matt on 27th of Nov 2019 at 03:09 pm
for example here's the ES contracts ESZ19 is the current one at the top, followed by ESH20 for the next one. You can see ESZ19 has traded 697,181 contracts today whereas the ESH20 has trades 10,714 contracts. Once we get closer to expiration we'll see more volume start to come into the ESH20 and eventually take over the ESZ19. Then once inversion takes place the old contract expires in about a week, so you still have time to get out of it
I think Gold contracts trade month to month but it's been a while since I've messed with those
Correct, GC trades month to
Posted by junkie on 27th of Nov 2019 at 03:53 pm
Correct, GC trades month to month, but some months are traded heavier than others. The next heavily traded GC contract is February.
Here are contract closure deadlines from my broker: https://www.interactivebrokers.com/en/index.php?f=deliveryExerciseActions&p=physicalYou would enter GC (gold futures)
So today at 4pm is a long cutoff.
Thank you Junkie, most useful.!
Posted by mundy on 27th of Nov 2019 at 11:37 pm
Thank you Junkie, most useful.!