IB and Metals

cscott · Jul 15, 2006

Just curious, why IB does not offer NYMEX's COMEX metal contracts in place of, or in addition to, ECBOT metal contracts? Is it because ECBOT offers more volatility in metals than NYMEX?

The reason I'm asking is because metal prices are usually quoted from NYMEX and NYMEX seems to offer more metals than ECBOT.

nastazio151 · Jul 15, 2006

I guess it's because these contracts are mainly pit traded, with only after-hours electronic trading, not sure though... I'd be very interested in having them too on IB.

cscott · Jul 15, 2006

Quote from nastazio151:

I guess it's because these contracts are mainly pit traded, with only after-hours electronic trading, not sure though...

If that is the reason, then I do not understand because I thought I'd read where NYMEX was getting more into electronic trading. Of course, it would not help much if IB only offered COMEX at night like the ECBOT grains they now offer. I hate having to enter a grain contract such as ZS at nite during low volume.

nastazio151 · Jul 15, 2006

Quote from cscott:

If that is the reason, then I do not understand because I thought I'd read where NYMEX was getting more into electronic trading. Of course, it would not help much if IB only offered COMEX at night like the ECBOT grains they now offer. I hate having to enter a grain contract such as ZS at nite during low volume.

Agree... I think the expansion was geared only to the energy products though :mad:

IBj · Jul 18, 2006

Quote from cscott:

If that is the reason, then I do not understand because I thought I'd read where NYMEX was getting more into electronic trading. Of course, it would not help much if IB only offered COMEX at night like the ECBOT grains they now offer. I hate having to enter a grain contract such as ZS at nite during low volume.

NYMEX will eventually move their products electronic. They just started with the energy products and we predict they will move the rest as well when the energy products are stable. All CBOT/ECBOT products are available, including the grains. We offer them pit traded and electronic.

We (read: our clients) have not generally loved the pit trading experience of CME and CBOT. If you are taking a long-term position where you plan to hold for days/weeks/longer, then traders are generally more willing to absorb the slippage and other malarkey that occurs in pit trading. But to day trade pit products, you have to be fantastically good to make money. The floor model just puts off-floor players at too big a disadvantage.

cscott · Jul 19, 2006

Quote from IBj:

NYMEX will eventually move their products electronic. They just started with the energy products and we predict they will move the rest as well when the energy products are stable. All CBOT/ECBOT products are available, including the grains. We offer them pit traded and electronic.

We (read: our clients) have not generally loved the pit trading experience of CME and CBOT. If you are taking a long-term position where you plan to hold for days/weeks/longer, then traders are generally more willing to absorb the slippage and other malarkey that occurs in pit trading. But to day trade pit products, you have to be fantastically good to make money. The floor model just puts off-floor players at too big a disadvantage.

Thank You for that explanation. Tell me, if I enter a ZS contract on Globex at night and leave it open for the next day, doesn't the pit-trading price of S affect my ZS trade? It appears to.

Also, are you saying that we CAN enter pit trades? If so, then can I trade S (soybeans) during pit trading hours only?

local_crusher · Jul 19, 2006

COMEX will move their products electronic by this year's end (very likely > 75%).

Also, there is no longer a need for trading comex futures products (except Copper).

CBOT metal futures have captured a market share of about 50% currently and are expanding. Also, CBOT will likely introduce a copper contract

ids · Jul 19, 2006

cscott,
1. Yes, essentially, pit and electronic it is the same contract.
2. You can trade on pit or electronically at any time now. We are not offering all products yet but most CBOT futures are available. See the list on http://www.interactivebrokers.com/en/trading/marginRequirements/margin_amer.php?ib_entity=llc

ids · Jul 19, 2006

I must correct myself. Pit price will not affect GLOBEX orders.

Avid_Consumer · Jul 19, 2006

I've wondered, does Timber Hill make markets in zg and zi futures? in the middle of the night when i join or improve the spread, the entire chain of months will frequently update instantaneously when i transmit, reacting to my bid or offer simultaneously with my order hitting the mkt. just curious

electronic copper would be very cool

IB and Metals

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