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I can get you a better deal in Chicago with same bona fides. For size.

As of yesterday, the Nymex had a $10.00 daily price limit, and ICE had no daily price limit. So, the "reach for the stars" resting sell orders were placed GTC on the ICE exchange.

ES all the way. Slippage, capitalization, leverage, sheer liquidity, the fact that the market trades 23 hours per day - all are superior in the ES. Biggest Reason? Once you start making some money, there is a serious tax rate advantage to trading ES compared to SPY. SPY is treated as...

Amusement aside, Energy is the most idiosyncratic market known to mankind. The terminology, the way they quote spreads, the conventions are just so localized and apart from fixed income, grains, metals, equities and the rest.

Shortie, you start a thread and a poll confessing total ignorance about XLE, and you rapidly shoot down my suggestion completely out-of-hand with an impulsive response ? I will bet you $10K cash that my daily calls with XLE and a spread combination of my choice will be superior in terms of...

So so so so so so so so wrong. The Swiss Franc has a 71% correlation to WTI Crude Oil. As of yesterday's close, the Canadian Dollar has a 94.7% correlation to WTI Crude Oil. Is your trading this impulsive ?

If you wanted to short XLE, I would do it as a relative value spread play against one of the components within the basket that has been especially strong in the rally and that you would expect to continue to outperform the balance of the basket in a broad market sell-off. My 2 cents.

I am an Engineer by training (nuclear), one of my better performing clients is a EE.

"what's the main reason this spread is not good?" It can have alot of directional risk and large trading ranges, in some eyes it defeats the entire purpose of spread trading.

Verify with your FCM - from my experience, the entire timeframe that you are un-hedged they will treat as unhedged directional risk.

Logic, when you (for example) buy 1 March11 ES contract, the initial performance margin will be $5,625. If you manage to sell 1 June 11 ES contract before the closing settlement, the initial performance bond for the combined position [ long 1 March ES and short 1 June ES ] is only $50. In...

Maybe you could fix this PRONTO for starters: http://www.cmegroup.com/trading/interest-rates/files/ICSQuote_VendorSymbols.pdf This has been disabled since November, and myself and over fifty of my clients are a bit disheartened. We made the migration over from CQG in February of 2010, and...

My advice - just make sure that your FCM will give you the appropriate SPAN performance bond intercommodity spread credit rate. If it's LCH or CME Clearing House, they are the ones who will ultimately tell your FCM if they have a credit agreement in place. I used to do alot of CME ClearPort...

"Rolls are a science unto themselves." X 2 The fungibility aspect of the contract and the variables introduced by the various delivery scenarios. It is, literally, a large game into and unto itself. And it gets gamed and squeezed when the opportunity presents itself.

"For those of us who have no intention of holding physical, and will always close out before delivery... any reason to think there will be a significant spread while both markets are trading?" If your intention is to do something like spread WTI versus Brent, then by all means use the ICE...

I had a buy in the NoB late yesterday that I was looking for some confirmation follow-through on this morning - that never materialized. Good thing I covered half the TuT at 9:30 am because the GE Z1-Z2 and the TuT both subsequently moved against me (higher). Got short the TuT the 14th, so the...

Atticus, definitely a crap chart scale. At last check, the XLE basket is worth $66,297 and the ES is worth $65,437 on notional value prices. The currency and volatility-adjusted trade ratios I gave are dead nuts on (which, you have to admit, is the important aspect), and it is a great spread...

Honestly, FWIW, there are so many better spreads to trade than that POS.

"YES when TRADING, and NO when charting. " So, are we splitting the difference, or are you just talking down on me because I'm a relative value trader ? BTW, I'll take YES when trading every time.

I'm wearing the GE Z1-Z2 for a couple tics in here... model still has me short. I shouldn't piss and moan about it given the TuT's payoff. Come to think of it, when was the last time I had a trade that was green start to finish ?