Best market to buy and sell at the same price (to churn commissions)
- Thread starter chinook
- Start date
Maybe... He'll have to check whether his broker counts an exch-listed spread/fly as two/three contracts or just one. Moreover, one of the requirements was high liquidity and I am pretty sure that no fly or spread satisfies has liquidity quite like the front contract.
sometimes exchange traded spreads (saw this in NG and ED calendars which skips a month such as june/august ) are quoted like lots of offers in say 103, 102 is empty and 101 has lots of bids. If you see this, put an offer to 102, wait for to filled and then put a bid to 102.
Most likely you will not suffer a tick loss and have double volume compared to outright. When doing this make sure you are not near to daily highs/lows of spread because they have tendency to enlarge the bounds when very near. Or maybe you can scalp a tick
Most likely you will not suffer a tick loss and have double volume compared to outright. When doing this make sure you are not near to daily highs/lows of spread because they have tendency to enlarge the bounds when very near. Or maybe you can scalp a tick
Quote from etemtezcan:
sometimes exchange traded spreads (saw this in NG and ED calendars which skips a month such as june/august ) are quoted like lots of offers in say 103, 102 is empty and 101 has lots of bids. If you see this, put an offer to 102, wait for to filled and then put a bid to 102.
Most likely you will not suffer a tick loss and have double volume compared to outright. When doing this make sure you are not near to daily highs/lows of spread because they have tendency to enlarge the bounds when very near. Or maybe you can scalp a tick
Thanks for the suggestion. I need to figure out if I can trade the exchange traded spreads with my account.
Quote from chinook:
Hi all,
I have an 'indecent' question
I am thinking about the Eurodollar futures...
So basically I am thinking that, I'll wait until best ask size gets much smaller and then buy at that ask price. Hopefully, all of the ask size will be taken at that price and bids at the price I bought will start showing up. Then I'll sell to those bids. I'll reverse this if initially best bid size gets much smaller...
Again I am trying to make this as much as risk free as possible and I am definitely not trying to scalp 1-2 ticks.
Suggestions welcome...
Thanks.
Youre right in thinking eurodollar futures. Use the spread packages to scratch your trades instead of the outrights though. You'll generate more trades at once which is what you seem to be trying to do and you'll minimize the chances that you'll get trucked all of a sudden for a loss.
Dont put any credence in the bid ask size in the outright eurodollar contracts. Over the past few weeks there have been numerous times throughout the day when the bid size was 5k+ and the ask size a few hundred, then in a split second someone sells a couple hundred contracts into the 5k+ bid and boom, not only is the 5k+bid gone, but the market has traded through the next bid price lower. (9842.0 bid on 5k, then in a split second the market is 9841.0 ASK, for size.
Point being, use the 3 month spread packages.
Pointless for his broker to count a spread or fly as a single contract unless he is charging exponentially in fees for that 1 contract. Never heard of this but if there are brokers that do this DO TELL!!!
Not true. Having no loss on every trade could mean scratching every trade (which he is aiming to do), and you can't make money scratching every trade. Sorry to get technical.