e mini basic questions

S

shortseller

ok ... few questions...regarding e mini

1) what is a normal total round trip 1 contract fee .. I have seen some advertise $4.75/ 5.00 all in .. and how is this price vs the other company's that advertise a price that is not all in ? basically what are the exchange fees, and what additional costs would there be to a broker that advertising a fee that's not all in?

2) platform - what is an important feature to look for when looking at platforms???- x-trader seems to be very popular with a basic search of e-mini's any thoughts on this and what should be a ball park platform fee? if any?

3) trading futures vs stocks making the transition. What is the biggest hurdle from someone that is very used to trading listed NYSE

4) e mini v.s. russel v.s. ym mini dow .... trade preference and why?

thanks in advance I am sure there very basic but I just wanted to get some other opinions on question 3 for the most part, and a tad curious on the other questions as well. thanks.

R.D.
 
Quote from shortseller:

ok ... few questions...regarding e mini

1) what is a normal total round trip 1 contract fee .. I have seen some advertise $4.75/ 5.00 all in .. and how is this price vs the other company's that advertise a price that is not all in ? basically what are the exchange fees, and what additional costs would there be to a broker that advertising a fee that's not all in?
More...
seems like $3-5/rt is pretty common. you might get better rates at various places with volume or with a large opening balance. as for the fees, i think Interactive Brokers breaks down what all goes into its fees, so that should give you a pretty good idea of what is invloved.
2) platform - what is an important feature to look for when looking at platforms???- x-trader seems to be very popular with a basic search of e-mini's any thoughts on this and what should be a ball park platform fee? if any?
More...
i imagine the answer to this will depend on the individual and trading style. personally, i don't need a lot from my platform. just a basic order entry DOM with a good quotes connection. platform fees vary; i don't pay a platform fee.
3) trading futures vs stocks making the transition. What is the biggest hurdle from someone that is very used to trading listed NYSE
More...
i haven't traded NYSE specifically, but i did trade stocks before i started trading eminis. three of the biggest differences to me were pace, leverage, and impact from volatility. for example, if you were short a 10-lot on the russell at 692 on Friday, within 20-min you were sitting on a $5k gain. since many brokers only require $500 margin per contract (intraday) that would be a do-able move on a $5k account. that's a lot of leverage in a hurry and P/L to match.
4) e mini v.s. russel v.s. ym mini dow .... trade preference and why?
More...
this again will be a very broadly answered question. the ES (which i assume you meant instead of 'e mini') is very liquid with sufficient volatility. the YM and the ER2 are less liquid and more volatile, though both still provide enough liquidity for many, many (i.e. most) traders. you also have the NQ (Nasdaq), ZB (30-year bonds), ZN (10-year notes), Dax, and many other products as well.

if you are considering futures, it may be useful to spend some time at these sites:

http://www.cme.com/

http://www.cbot.com/

http://www.eurexchange.com/index.html
thanks in advance I am sure there very basic but I just wanted to get some other opinions on question 3 for the most part, and a tad curious on the other questions as well. thanks.

R.D.
More...
hopefully someone with some NYSE specific experience can help answer your questions. either way, best of luck in your search.

hth

take care :)

omni
 
biggest difference is probably the fact that futures trade on one ecn, instead of specialist. this can be a two-edged sword.

edit: and the massive volume/liquidity compared to most stocks. again two-edged sword
 
Quote from shortseller: ..
e mini v.s. russel v.s. ym mini dow .... trade preference and why?
More...
The DOW (YM).
Because of the volatility.
Best money tree .. collect the money from the gyrations.
:)
 
Quote from shortseller:

ok ... few questions...regarding e mini

1) what is a normal total round trip 1 contract fee .. I have seen some advertise $4.75/ 5.00 all in .. and how is this price vs the other company's that advertise a price that is not all in ? basically what are the exchange fees, and what additional costs would there be to a broker that advertising a fee that's not all in?

2) platform - what is an important feature to look for when looking at platforms???- x-trader seems to be very popular with a basic search of e-mini's any thoughts on this and what should be a ball park platform fee? if any?

3) trading futures vs stocks making the transition. What is the biggest hurdle from someone that is very used to trading listed NYSE

4) e mini v.s. russel v.s. ym mini dow .... trade preference and why?

thanks in advance I am sure there very basic but I just wanted to get some other opinions on question 3 for the most part, and a tad curious on the other questions as well. thanks.

R.D.
More...




1. 3.75-5.00 depending on the platform and broker and how much volume you do.

2. Stablility, a reliable server. Platform can run from $50 on up per month. Others are added to the RT fee and do not charge a monthly fee.

3. Getting used to the fast pace. Having the discipline to cut your losses before program trades take your capital away. With futures money management and discipline are what you have to get down first.

4. I trade YM and if you traded NYSE before you will probably trade it better than the rest. When I was trading NYSE, I got pretty good at picking turning points in the DOW and used this tool to help pick entries and exits on stocks.
 
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