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Hedge ratios for inter market spreads are NOT a static number - this holds true for 5’s versus 10’s and it’s true for ES versus NQ. As volatility changes over time and things like the components of an Index change - this will affect the hedge ratio. There are just a handful of exceptions that...

In the late 90’s to 2005 I was a size proprietary trader in Chicago. Mostly Eurex and LIFFE. Of course I was a spread trader. Schatz, Bobl, Bunds, Gilts, Short Sterling, Euribor... I traded hundreds of thousands of contracts per month. And I would cut your throat for five cents. And I was...

At one time I sat next to a Eurex scalper at DE Trading who was and is a good friend. He calls himself a scalper - but I consider him to be an apex ambush predator. He would sit there for hours waiting for his trade set-up - and then he’d take them all. If there were three thousand there he’d...

IMO, micros are the ideal product to learn how to swing trade an outright or to test an automated trading system. You’d better be on the selective end of the spectrum if you’re scalping it. Just my own observation, YMMV

IMO, micros are the ideal product to learn how to swing trade an outright or to test an automated trading system. You’d better be on the selective end of the spectrum if you’re scalping it. Just my own observation, YMMV

My understanding of the CME fee schedule is that Non-Member rates on Micros are $0.40/rt and Member Lease rates are $0.14/rt at present. So do the math and decide if leasing a seat makes sense. If you’ve had a bang-up year you might even consider buying a seat.

About 18 years ago, as I recall, Harris Brumfield (owner of TT and monster trader back in the day) sued the NFA over fees they were collecting on his Eurex trades. Of course, Eurex is a European exchange that operates in the US courtesy of a CFTC “no action” letter. At the time I traded...

My understanding of the CME fee schedule is that Non-Member rates on Micros are $0.40/rt and Member Lease rates are $0.14/rt. So, at 56 rt/day @ 20 trading days per month, that’s a savings of $291.20 against the cost of the seat lease. I’m not including NFA fees. I’m all for anyone...

Oh, you savage :cool:

There are literally tens of thousands of inter and intra market spread combinations - and the inter market spreads you have mentioned are on the riskier end of the spectrum. I tend to emphasize intra market spreads that do NOT include the prompt months and where there is sufficient volume and...

For what precisely - equity indices futures? There would be literally tens of thousands of potential spread combinations in the exchange listed universe.

These new low volume contracts (water, also) should be strictly avoided unless you can make good delivery on the underlying - in other words, you’re a Commercial.

Hey, NP. I agree completely that there's no singular way to make money trading markets. The last guys I knew at DE Trading (Glenview/Chicago) who were making money scalping at my old firm had a tool for managing {gaming} order queue position. Looking at DRW, Jump, Peak6, Geneva, Belvidere...

Naturally a person who has already made a billion dollars would put forth such a magnanimous statement.

Yes. In the late '90's and early 2000's, Chicago had a couple dozen proprietary futures trading firms where the strategy was DOM scalping using TT X-Trader. All but one have been closed for ten to fifteen years now - and TransMarketGroup has completely transformed itself into a little mini DRW...

Another possible take is that EDI has been charging its customers for End-of-Day data that it has been getting for free from CME.

Oh sure, most certainly. There's quite a bit of sector rotation going on, and a few of the more popular spreads are Dow Jones mini versus Russell 2000 mini, ES versus NQ, DJ EuroStoxx 50 versus FTSE... that type of thing. Model them carefully and have a good understanding of what is driving...

The challenge with posting a news release straight up from one party involved in litigation is that it will almost certainly provide a singular dimension to an issue, :caution: and this case is no exception. I'm not choosing sides with CME or EDI, but just trying to provide some balanced...

Great post and very informative - thanks for this. :thumbsup: The only thing I would add is that if you are trading the Nymex Clearport or ICE-LCH financially settled swaps - it will require considerably more margin than you are accustomed to with CME NG futures. And a discount broker is...

Australian Iron Ore prices are skyrocketing, and a Deloitte consultant quoted in the article says that it will likely be a net gain for Australia...