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Market Features : some tips for Japanese Commodity Futures! Trading Methods In Japanese commodity futures trading, there are two types of trading methods which are "Itayose" and "Zaraba (Continuous Session)" Trading. Itayose Trading Itayose Trading is the Japanese traditional method where only one price (for each contract) is settled during each session. An exchange official stands up at the perch of the trading floor and indicates a provisional price to members. . Then members place bids and offers. If the numbers of bids and asks do not match after all the orders are placed by members, the exchange official will lower or higher the provisional prices, and members will again place bids and offers in response to the price. The trading goes through this process until the numbers of bids and asks match and when the numbers match, all the orders are instantly executed at a single price. Itayose Trading is used at all the commodity exchanges, except the Tokyo Commodity Exchange. Zaraba (Continuous Session) Trading Zaraba Trading is the trading method where orders are continuously executed when the price and numbers of lots match. Under the Zaraba Trading, there will be many settlement prices during the trading hours, except for the opening and ending sessions where another trading method called Itaawase Trading may be used. The Itaawase Trading method is similar to Itayose Trading, but instead of matching the number of bids and offers, a single price will be settled on at the maximum number of bids and offers from among all the bids and offers. Zaraba Trading is used at The Tokyo Commodity Exchange. Margin Call System If the loss of Open Trade Equity exceeds half of the total required margin, you will be on a margin call. This Margin Call system is quit original compared to foreign markets. (Check out "Important-Margin Call"!!) |
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