CME equity micro contracts coming
- Thread starter manonfire
- Start date
M6E cost less than $1 round trip with IB I believe.
I agree, I think this a response to "The Small Exchange". The one and only thing that they could have done that would have been noteworthy from the start would have been their own version of a "micro e-mini S&P". The CME is not waiting around for that to happen.
The CME could careless what "The Small Exchange" tries to do beyond that. They are preemptively offering an official "micro emini s&p". Single Stock Futures and other micros lack liquidity. The bid/ask is wide enough to drive a truck through and 5 minutes or more can go by without a single transaction hitting the tape.
The CME's emini micro s&p will be a big hit. The Small Exchange will need to do something innovative now that no one will care about their version of an s&p micro, if they even bother to offer one after this.
I respectfully disagree. Also, you cite mini's as proof of lack of acceptance when I can point to the Emini-S&P as a success. You need to make an apples to apples comparison. Equity index minis are a proven success for American Equity Indices. The question is, can micros be a success considering that most 'micros' have lousy volume.
Emini s&p micro's volume will be the largest among all micro products. You have entire businesses and organizations that cater to low-end spec clientele, for example, Nadex and TopStep Trader. In addition to that you have the founder of Thinkorswim making an exchange to cater solely to the retail/low-end spec crowd. There is a demand for this product and all of the companies I have previously mentioned will be impacted by this new CME product (maybe even put out of business).
How many deep discount futures brokers like Apex will experience sub $2k accounts now trading the emini micro instead of the regular emini?...The answer is many.
This product will be a huge hit, if I am wrong, feel free to revisit this thread and remind me.
Last edited:
I am totally not interested in engaging a battle with you.
don't need to brawl over our differences.
You stick to your opinion.
I stick to my opinion.
we don't need to influence or brainwash each other.
No price to win even if our opinion is correct.
Last edited:
I think also, that the CME has seen Nadex develop a market for all these equity index derived/related binary options which appeal to forex types who would prefer to be trading real products but the cme contracts are too big for them.
I imagine many of them will follow the micros with interest as well. So I think that the CME has done some pre-emptive work- as you said- to stay ahead of the Small Exchange/and other look alikes- but has also let Nadex be the canary in the cage in regard to testing the market for quirky little products.
It is not 'retail' that drives full size and e-mini index markets.
If you think about the players that drive those markets, and then pose whether they would find a purpose in a *micro* market -- I think the answer is "yes", albeit in a limited way. "Corner solutions" -- like towards the end of the {cash} day, or towards an expiration {e.g., the last 36 hours}, towards the closing moments of a pre-announced-but-momentous event (a BREXIT vote, a FED FOMC rate announcment, AAPL's iPhone11.5, .....) Each of these -- like going from fractions to penny-wides in equity quotes -- could present an opportunity for sharpening, tuning, price-arbitrage-shaving that somebody will whiteboard into saving a few dollars with the micros, and make a career for themselves. [And, "Good on them."]
If you think about the players that drive those markets, and then pose whether they would find a purpose in a *micro* market -- I think the answer is "yes", albeit in a limited way. "Corner solutions" -- like towards the end of the {cash} day, or towards an expiration {e.g., the last 36 hours}, towards the closing moments of a pre-announced-but-momentous event (a BREXIT vote, a FED FOMC rate announcment, AAPL's iPhone11.5, .....) Each of these -- like going from fractions to penny-wides in equity quotes -- could present an opportunity for sharpening, tuning, price-arbitrage-shaving that somebody will whiteboard into saving a few dollars with the micros, and make a career for themselves. [And, "Good on them."]
Last edited:
With Tradovate you can trade the M6E and the other micro currencies for 0.54 USD per roundturn ! Similar with AMP futures, if you have the 2K membership...
I guess pricing will be similar with these new micro equity futures. With such a cost structure, you can even go for tick(s) in these micros and still be profitable.
I guess pricing will be similar with these new micro equity futures. With such a cost structure, you can even go for tick(s) in these micros and still be profitable.