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CME e-micro futures
- Thread starter ssbc19
- Start date
Yup, either lower commissions or these contracts will be dead in the water.
Open ECry will be offering the CME Micro FX at $0.50 per side plus fees. My understanding is the CME will be discounting the exchange from $0.16 per side to $0.06 per side for the first six months. This would make the total per side only $0.56 all-in. This is the best I have found anywhere. Will keep you posted.
http://www.openecry.com
http://www.openecry.com
Quote from brownsfan019:
Open ECry will be offering the CME Micro FX at $0.50 per side plus fees. My understanding is the CME will be discounting the exchange from $0.16 per side to $0.06 per side for the first six months. This would make the total per side only $0.56 all-in. This is the best I have found anywhere. Will keep you posted.
http://www.openecry.com
Yup, i've heard similar deals from other brokers/clearing firms.
My main personal interest is in putting on some small hedges for some currency exposure in one of my accounts, so I'm not too concerned about liquidity and paying a big spread.
However, I don't think you can necessarily extrapolate out the volume decrease from the full size to the half size and say the micro will get even less volume. A perfect example is the Nikkei 225 contracts in Asia... there are three of them, a full, mid-size, and mini, and guess which one gets the most volume? The mini. Even though each tick is less than $5 USD, and the round trip commissions at IB are around $3, it still gets more volume than the other two combined (didn't check the figures but it sure seemed like it from my experience).
I think it will be fun to watch and see if these things can pick up any steam.
However, I don't think you can necessarily extrapolate out the volume decrease from the full size to the half size and say the micro will get even less volume. A perfect example is the Nikkei 225 contracts in Asia... there are three of them, a full, mid-size, and mini, and guess which one gets the most volume? The mini. Even though each tick is less than $5 USD, and the round trip commissions at IB are around $3, it still gets more volume than the other two combined (didn't check the figures but it sure seemed like it from my experience).
I think it will be fun to watch and see if these things can pick up any steam.
Quote from Surdo:
Unless there is liquidity, nobody will trade these other than an occasional longer term hedger.
Just look at the anemic volume of 7E, and 7J.
Yo Suds,
I see your point..but I think there could be a migration to the micro contracts from current spot FX traders.
Wishful thinking I know...but if those things get a little volume...it could be ugly for the bucketshops.
Quote from Reaver:
Yo Suds,
I see your point..but I think there could be a migration to the micro contracts from current spot FX traders.
I am too tired to think, but isn't the leverage night and day between the two?
No FCM in their right mind is going to offer any contract less than $500/contract.
So there goes that theory.
Quote from Surdo:
I am too tired to think, but isn't the leverage night and day between the two?
No FCM in their right mind is going to offer any contract less than $500/contract.
So there goes that theory.
I definitely agree with you...
But, 10k with %500 margin is still 20:1, which is somewhat sane...
Honestly though, I would think the ability to trade in a regulated market would be more important than leverage.
Trading with high leverage in a market where the dealer can change your quotes at will is a recipe for disaster.
Have a good weekend bro.