CME: The Mini Nasdaq is not so mini...!!

[Jankovic]

It's time to reduce the tick value, like the mini Russell 2000

The current price of the "mini" future contract is around 125,000 $
Five years ago the contract value was around 50,000$

The intraday price volatility is double compared to the mini SP or the miniDow

My trading strategy uses 4 contracts at time and for me it starts to be too risky

I hope the CME will consider to reduce the point value from 20$ to 10$

 

[Robert Morse]

With your example, why not just cut back to 2 contracts.

 

[Jankovic]

With your example, why not just cut back to 2 contracts.

4 different entry price....

 

[comagnum]

Some of us trader like large price moves - it keeps out trading costs down. The NQ has the lowest trade cost (0.48%) of all of the liquid CME contracts in relation to its average price range (ATR). You can always trade the RTY.

 

[Jankovic]

Some of us trader like large price moves - it keeps out trading costs down. The NQ has the lowest trade cost (0.48%) of all of the liquid CME contracts in relation to its average price range (ATR). You can always trade the RTY.

Ok but stop call this contract "mini"....
My exposure is 500,000 $ every time I enter a trade
Do you think I am really worried about 3,90 $ round trip?
RTY is not for me

 

[Visaria]

Go trade options.

 

[Jankovic]

Go trade options.

No.
Options are too complicated for me....and generally I close my trades in hours o max 3/4 days

 

[southall]

It's time to reduce the tick value, like the mini Russell 2000

The current price of the "mini" future contract is around 125,000 $

Money printing by FED means $125,000 is not as much as it used to be.

1 Large DAX future = $400,000 USD

1 Large S&P future = $650,000 USD

$125,000 is MINI these days

 

[chris500]

It's time to reduce the tick value, like the mini Russell 2000

The current price of the "mini" future contract is around 125,000 $
Five years ago the contract value was around 50,000$

The intraday price volatility is double compared to the mini SP or the miniDow

My trading strategy uses 4 contracts at time and for me it starts to be too risky

I hope the CME will consider to reduce the point value from 20$ to 10$

You're confusing the contract multiplier with the minimum tick size. They're 2 different things.

They did not reduce the minimum tick for the mini Russell 2000. The minimum tick size was 0.10 and still is 0.10.

What they did was reduce the contract multiplier from $100 to $50. So, before, a single point (1.00) was worth $100, but now 1 point is worth $50.

0.10 x $100 is $10 <--- the old minimum price fluctuation
0.10 x $50 is $5 <--- the new minimum price fluctuation

This change, by the way, was a huge mistake in my opinion. Did volume double as a result? Did liquidity double? Last I checked the answer is no. That means that the only thing this change do was reduce volume and reduce liquidity... in other words, people should be getting fired and the top executives should issue an apology for being dumb-dumbs.

If 4 contracts is too risky for you, you're clearly undercapitalized for e-minis. The solution is to trade e-micros. There's lots of e-micro currency futures, there's e-micro gold, etc.

 

[southall]

Did volume double as a result? Did liquidity double? Last I checked the answer is no.
in other words, people should be getting fired and the top executives should issue an apology for being dumb-dumbs.

Volume went up by 50%, but not 100% as would be expected.
But ICE had already lost the contract at that point, so no one at ICE probably cared.
But that decision to 'split' the contract gifted CME with a windfall 50% boost in profits as CME had no obligation to charge the same half rated fees ICE were morally obliged to charge after they split the contract 2:1.