CME pit volume sharp DROP

stevet, of course i see your point.
i think the CSCO's and INTC's will do the job then.
i assume you are not a pit local, right?
so, if the pit guys generate movement THEY profit from,
YOU will lose from it. i will like to have have less movement,
if this movement would be 75% against me.
 
Originally posted by voltrader
metsoxx, I beg to differ..from what i've seen only a very small percentage of pit traders are actually successful when they move upstairs...most find it extremely difficult to adapt to the new environment and to change the way they have been doing things for years...I'd say the majority bite the dust after 6 months
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We don't differ, I agree that a large percentage making the move don't make it. I would say that scalpers have the hardest time, spreaders find it easier.

The worst wash out rate among my personal acquaintances is traders changing markets, they hardly ever make it.

The easiest transaction is spreaders because they still have the edge in transaction costs.
 
Originally posted by stevet
metooxx

do u see my point though - will there be people to move the markets - in times when there is no real force to move the market

if everyone is on the same playing field - and you lose some of the levels of having an edge - so you remove some of the forces that move markets
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I agree, we couldn't trade without our edge in costs and technology.
 
Originally posted by saschabr
metooxx: if the big contracts would go electronic, i think it is reasonable to expect that CME will probably charge, maybe twice the e-mini fee as exchange fee, everything else would be unreasonable, because from the cost side it does not matter if you clear a small or a big contract, on the other hand the contract is bigger and a higher fee is justified by more movement.

i would "estimate", we will probably be able to trade big spooz's for 5 bucks per side one day via IB.

in this case, the fees are so small related to the size you move, that in my opinion a ex-local who trades for $2 per side has no longer a really significant advantage.

of course, all numbers are 100% fictional:cool:
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I disagree, that small edge which is a lot bigger than you stated, allows a trader to scratch, without even considering the transaction costs. It doesn't seem like much @ 1 contract, but @ 1,000 to 5,000 a day that difference is your profit. Our systems would lose money if they were traded @ retail rates. That is the edge.
 
Metooxx: I see what you want to point out.
However, what i originally wanted to know:
What is happening just these days (to the June contrct.)
that volume declines so strongly ?
Do U have any info on this (e.g. a big player moved out or sthg ) ?
 
One guy from theS&P pit told me that the averagespread is .5 point. That's the double of
the E-mini. Those Pit traders are CROOKS..
One day everything will be electronic with
a .25 spread for all. That's what I call a
fair market.
 
Bryan: I really appreciate your comment, but this is simply not a point here. The decline i refer to is as if the total Nasdaq Volume of yesterday was suddenly 400.000.000 shares (in fact, it was about 1.2 bill, with a range of 1.1 - 2 bill.).
 
so what is the percentage drop you are referring to and exactly how many days has it been off. was it OK monday but then tuesday was off or what???? i would like to know the answer for the decline also.
 
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