The personal composite trading instrument «&Grain_4» reflects the price dynamics of the portfolio of 4 popular grain commodities. The base part of this instrument is composed of 700 bushels of corn, 700 bushels of oats, 250 bushels of soy and 500 bushels of wheat, quoted in US dollars.
These commodities are represented by continuous CFDs on respective futures. The asset percentages in the instrument content are set approximately equal on the basis of asset prices in USD on the instrument creation date.
The trading instrument &Grain_4 is used for the analysis and trade of the portfolio of popular grain commodities.
|&Grain_4||№||Asset||Volume / 1 PCI||Percentage||Volume (USD) / 1 PCI||Unit of measurеment|
|Base part||1||#C-CORN||7.0000||24.190||2419.2000||100 bushels|
|Fixed spread, pip||1520||1520||1520|
|Floating Spread, pip||1520||1520||1520|
|Order distance, pip||-||-||-|
|Swap (long/short) in pips on Vol||-2.169 / -1.127||-2.169 / -1.127||-2.169 / -1.127|
|>=4.29||0.43 – 28.57||>=0.43|
|The value of 1 pip in USD for the Vol||0||0||0|
|Week day||Trading hours (CET)||Local trading hours|
|Monday||01:00 — 13:45, 14:30 — 19:15||01:00 — 13:45, 14:30 — 19:15|
|Tuesday||01:00 — 13:45, 14:30 — 19:15||01:00 — 13:45, 14:30 — 19:15|
|Wednesday||01:00 — 13:45, 14:30 — 19:15||01:00 — 13:45, 14:30 — 19:15|
|Thursday||01:00 — 13:45, 14:30 — 19:15||01:00 — 13:45, 14:30 — 19:15|
|Friday||01:00 — 13:45, 14:30 — 19:15||01:00 — 13:45, 14:30 — 19:15|
It should be noted that that the base part asset trading hours consists of periods of significantly varying liquidity. In the low liquidity trading period from 02:00 – 14:45 (CET) the quotation changes (ticks) may arrive quite infrequently. Therefore sometimes trading of a separate instrument can be blocked at the onset of time-out situations, when the succeeding tick does not arrive for more than 15 minutes. But once the next tick arrives the trading resumes. Since PCI trading can be conducted only during the simultaneous trading hours of all its component assets, the time-out situations for PCIs can occur more often. An “x” sign in the left column of the “Market watch” window notifies about the “time-out” situation in NetTradeX trading terminal. But during the liquid trading hours from 15:30-20:15 (CET) our Grain_4 PCI can practically always be traded.
This personal trading instrument &Grain_4 is used for the analysis and trade of the grain portfolio, multi-year comparative analysis of the behavior of popular exchange grain commodities, as well as grain portfolio dynamics comparison. For example, by building a percentage chart in the NetTradeX terminal for three instruments #C-WHEAT (wheat), #C-CORN (corn) and our grain portfolio &Grain_4 (Fig. 1), it is evident that during the five year period (2010-2014) the wheat and the grain portfolio exhibited similar dynamics, while corn was substantially more expensive during 2.5 years (2011 - summer 2013) but in 2014 the corn price fell considerably below the portfolio price.
Traders, who specialize in grain commodities and want to smooth the price volatility of separate commodities, will be comfortable trading this PCI.