Micro BTC futures coming. Crazy fee.

[Overnight]

https://www.cmegroup.com/content/dam/cmegroup/notices/ser/2021/03/SER-8746.pdf

$2.50 per contract, which is 5 ticks? Now that is nuts.

 

[MrMuppet]

5 ticks?? Dude, that's just 50cts on 6k notional in a market that has 20%+ moves in a couple of hours. You'll lose more by blinking in the wrong moment.

And at least you won't have to complain about those crazy margins, right??

 

[They]

This is great news!!!!!!!

 

[bone]

Why would you expect there to be a linear relationship between contract notional value and fees?

https://www.cmegroup.com/content/dam/cmegroup/notices/ser/2021/03/SER-8746.pdf

$2.50 per contract, which is 5 ticks? Now that is nuts.

 

[SunTrader]

https://www.cmegroup.com/content/dam/cmegroup/notices/ser/2021/03/SER-8746.pdf

$2.50 per contract, which is 5 ticks? Now that is nuts.

Guess you haven't seen bid-ask spread on the current large contract.

Quite often it is $30, 40, 50 wide!!!

Though translating that (all things being equal) to the new Micro 1/50th size that would be $0.60, $0.80 & $1.00

 

[maxinger]

how will be volume be like?

currently, btc futures volume is at the pathetic level of about 10k/day.
will micro btc futures volume be like say 50k / day?


alternatively, phase out btc futures
and micro btc futures volume will be > 10*50= >500k/day

 

[antares66]

"Outright: 5.00 index points = $0.50 per contract". Does it mean a gain of $100 if bitcoin moves up 1000 points (1000/5.00*$0.50)?