Author Topic: Why trade on the US Markets and not the South African Futures Exchange (SAFEX)?  (Read 534 times)

Offline TradingAdmin

  • Administrator
  • Newbie
  • *****
  • Posts: 19
  • Karma: +0/-0
    • View Profile
Yes, you may trade commodity futures and commodity futures options on the SAFEX, in South African Rand.  There are mainly two reasons why we choose the US markets:
  • Liquidity:  The number of traders in the market determines how fast you are able to execute an order when you want to enter / exit the market.  You cannot afford to want to exit the market, but are unable to because there is no one available to take the opposite position from you.  If that is the case you will not be able get the price you want and may have to settle for a less favourable price.  We cannot afford this.  With the US Commodities, there is no problem with regards to liquidity.  The US Commodities markets sees billions (yes billions, not millions) of dollar changing hands every day - there is no liquidity problem.  When you want to get in or out of a market there is immediately a buyer (seller) available willing to take the opposite position from yourself
  • Data: We need data in order to make informed decisions.  The data we need are collected for all commodities in the US markets, by independent companies and the data is made available.  The same is either not collected, or is not available for the SAFEX - without the necessary data we are blind, we are in the same boat as the professional trader and simply by this being their profession they will beat us in the markets.  We need data, the right data, in order to give us an edge over the market to allow us to beat the market!