This is a question i was recently asked in one of our rooms
I heard about it a while back and dug into it…
I saw some guys posting about doing signals with them etc… but its not really “active trader” or wise trader “tradeable” at the moment.
Here is the summary
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It has limited contracts ie EUR/USD, GBP/USD, USD/JPY
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With only a few expirations
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They also charge a $2.00 monthly account fee just for having an account…
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You can withdrawal $100 or your entire balance at a minimum
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No volume: ie i show one contrat for the entire day: http://www.cantorexchange.com/PDFs/EOD/20130731.aspx
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There is basically no liquidity - Live account: Notice the lack of bid/ask qty: Forums
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All orders operate off of a Request for quote versus traders/market makers putting up quotes
EURO SPOT INDEX DIGITAL FLEX SWAPS CONTRACTs may also
be listed in response to Request for Quote (“RFQ”) messages received by the exchange from
Participants. All such RFQs shall include the final settlement time and the digital strike
reference price for the contract. RFQs may optionally include the number of contracts available
for purchase or sale and corresponding price. All responses to RFQs shall include the number of
contracts that are available for purchase or sale and the corresponding price. EURO SPOT
INDEX DIGITAL FLEX SWAPS CONTRACTs become tradable immediately upon a Request
For Quote (“RFQ”) being submitted through the Cantor Direct System and are available for
trading from the time of RFQ acceptance by the Cantor Direct System until final settlement time.
8)They had to list some contracts or lose their exchange “license” so they threw some up there.
- Also right now it is based on their “index” of a market veruss the actual spot/future etc…This does not give me warm fuzzies about settlement prices - see why below
They take the last 8 dealable mid price points of bid/ask of the spot market from ? what data feed? - remove two highest and lowest average that to make their “index”
-if there are no quotes “e. In the event that no quotes are received during a period of time exceeding one-half hour, then the Exchange shall calculate the price, in its sole and absolute discretion, using the best available indicative spot Euro/U.S. dollar prices available from recognized distributors of currency price information”
http://www.cantorexchange.com/PDFs/Cantor-Exchange-Contract-Rules---Euro.aspx
- They are not “binaries” they are trinaries - above strike buyer profitable (sell looses), below strike - seller profits (buyer looses) - at the strike its split 50/50
Each open position in EURO SPOT INDEX DIGITAL FLEX SWAPS
CONTRACTs will be Cash Settled such that if at the final settlement time the Euro Spot Index is
above the digital strike reference price then each purchaser shall be paid one hundred dollars
($100.00); if at final settlement time the Euro Spot Index is below the digital strike reference
price, then each seller shall be paid one hundred dollars ($100.00); if at final settlement time the
Euro Spot Index is equal to the digital strike reference price, then each purchaser and each seller
shall receive fifty dollars ($50.00).
Also not horrible but noticed the increment of quote is $1.00 not .25
Honestly I would rather have more market makers on one exchange than multilple exchanges as market markers are who compete for the fill - tightes bid/ask spreads etc…
ie how many people trade gold on eurex or fx futures on ice…not many…as they want the best bid/ask where the most market markers compete
People are a bit confused as with the “brokers” bucket shops otc international binaries they think another exchange is a good thing
But in reality it just spreads out the liquidity for traders and market makers - the whole point of an exchange is to get as many people participating in one place as possible to best facilitate order flow and efficiency
As far as cantor goes they are way behind the ball…
Nadex is adding on market makers fcm’s more products markets strikes expiration’s etc…
So as stated previously it may have potential in the future but right now its just “there”.
I will keep an eye on them and let you know of any updates
Darrell