Trading gold with IG Index

[troyresearch]

A potentially naive, but important question, please be gentle:

IG Index offers spot, near and far month gold contracts. My understanding is that these are based on NYMEX contracts. Is there much differential between NYMEX and CBOT/COMEX gold contracts?

Also, am I right that the NYMEX gold market opens before Chicago?

 

[tomorton]

Re: Trading god with IG Index

You can't trade God mate, He won't allow it.

 

[troyresearch]

Re: Trading god with IG Index

Very droll, serves me right for typing too fast. Anyway, who said God is male?

 

[tomorton]

Re: Trading god with IG Index

Oops. Guess She might strike me down with a thunderbolt for that little slip.

 

[arabianights]

Re: Trading god with IG Index

comex is nymex innit?

 

[troyresearch]

Re: Trading god with IG Index

comex is nymex innit?

OK so is there a vast difference in prices Chicago v. New York?

 

[HowardCohodas]

Re: Trading god with IG Index

OK so is there a vast difference in prices Chicago v. New York?

If there were, it would be a great arbitrage opportunity. With today's communications technology it is not very likely.

Small differences can exist. Use a broker/platform that chooses the best prices given your strategy. For example, when my spreads are filled, the legs are sometimes filled from different exchanges. Also, with limit orders, partial fills may take place over several minutes as the broker watches all exchanges to achieve your order.

 

[troyresearch]

Re: Trading god with IG Index

If there were, it would be a great arbitrage opportunity. With today's communications technology it is not very likely.

Thanks, to put it another way, below is what I'm trying to decipher:

Buy Chicago Dec. mini gold at 1355.50 and 1357 or better with a 1334.50 stop. If those prices have already been hit in the New York session, buy Dec. 2 mini gold market on open. Stops should be at 1339.00.

 

[HowardCohodas]

Re: Trading god with IG Index

Thanks, to put it another way, below is what I'm trying to decipher:

Also make sure the two quotes represent the same time of day. Are the quotes you're getting real time or time delayed or a combination? If both delayed, is it the same delay?

 

[troyresearch]

Re: Trading god with IG Index

Yes, both same time, same source.

 

[HowardCohodas]

Re: Trading god with IG Index

Yes, both same time, same source.

Then I am unable to account for the difference.

 

[wackypete2]

Re: Trading god with IG Index

The Chicago Mercantile Exchange (CME Group) owns both the NYMEX and COMEX as of sometime in 2008. They are all the same although contract specifications may be different and would have a different symbol. NYMEX/COMEX markets in New York open before Chicago, so I think you are being told to buy on CME (Chicago) market open if the NY price has already hit.

There are still changes going on with many of these exchanges so some information gets out of date rather quickly.

Peter

 

[anley]

Re: Trading god with IG Index

Troy

This will save you a lot of time and effort.

If ever you think you can see a price difference on 2 or more markets where you think there's money to be made - there isn't because others with decades of experience and millions of $ worth of computers and communications will have got there before you. And 'before you' might only be 0.01 second but that can be a long time in trading these days.

So if you want to make money in Gold you're going to have to do it the hard way, ie figure out if it's going up or down.