Micro CL contract - support the introduction by CME - petition

S

steve2222

Help FT71 (broker) convince the CME to introduce a true micro CL (oil) contract at 1/10th the e-mini size on the back of the very successful launch by the CME of the micro US equity index futures contracts.

The current smaller sized oil contact (QM) is not small enough and it's tick size is not granular enough ($0.025 per tick) ie it needs to be $0.01 per tick to match the CL.

https://www.change.org/p/cme-group-inc-cme-to-launch-micro-crude-product

Thanks
 
The bid-ask slippage is going to be higher on the micro because the MM hedge will be on the mini, which will be higher than the full CL contract again because of the MM hedge. So sure, you might have a lower initial capital requirement - but is it worth 8 cents slippage per RT?

Maybe the better option for you would be the USO ETF. If you can consistently grind out a couple hundred bucks per day getting good with USO that would make a transition to CL much more realistic.

Also, CL intramarket spread trades are margined at a fraction of the outright margin so that's another possibility but they are better as a swing trade than a day trade.

steve2222 said:
Help FT71 (broker) convince the CME to introduce a true micro CL (oil) contract at 1/10th the e-mini size on the back of the very successful launch by the CME of the micro US equity index futures contracts.

The current smaller sized oil contact (QM) is not small enough and it's tick size is not granular enough ($0.025 per tick) ie it needs to be $0.01 per tick to match the CL.

https://www.change.org/p/cme-group-inc-cme-to-launch-micro-crude-product

Thanks
More...
 
bone said:
The bid-ask slippage is going to be higher on the micro because the MM hedge will be on the mini, which will be higher than the full CL contract again because of the MM hedge. So sure, you might have a lower initial capital requirement - but is it worth 8 cents slippage per RT?...
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I disagree. The CL many times has larger volume than the NQ, and the MNQ has worked out well with nary a gap in the B/A spread. So logically it would follow that a Micro CL, with same specs as the CL and not that QM crap, would be a hit among both producer/consumers and specerlators (sic) alike.
 
steve2222 said:
Help FT71 (broker) convince the CME to introduce a true micro CL (oil) contract at 1/10th the e-mini size on the back of the very successful launch by the CME of the micro US equity index futures contracts.

The current smaller sized oil contact (QM) is not small enough and it's tick size is not granular enough ($0.025 per tick) ie it needs to be $0.01 per tick to match the CL.

https://www.change.org/p/cme-group-inc-cme-to-launch-micro-crude-product

Thanks
More...

Steve, a true 1/10 of CL would be $1 per tick, not 1 penny per tick, heh.
 
bone said:
The bid-ask slippage is going to be higher on the micro because the MM hedge will be on the mini, which will be higher than the full CL contract again because of the MM hedge. So sure, you might have a lower initial capital requirement - but is it worth 8 cents slippage per RT?
More...

A very similar increment hierarchy exists with the SP500 products...
SP -> ES -> MES

8 cents, 4 per side is a bit exaggerated I think.

That said, I do think the "danger" of micros is yet to be seen.
I believe they will increase volatility, partially due to the hedges you mention.
It will be interesting to see what happens when sustained $50+ fast bars becomes common place instead of one-offs on the micros. Careful what you wish for people.
 
tiddlywinks said:
...
That said, I do think the "danger" of micros is yet to be seen.
I believe they will increase volatility, partially due to the hedges you mention...
More...

What "danger?"

The micro currencies and micro gold have been around for what, 10 years? Any danger seen in those yet? The micro equities have been around for 6 months. What "danger" has cropped up with them?

So what danger will crop up with a micro-CL?
 
Overnight said:
What "danger?"

The micro currencies and micro gold have been around for what, 10 years? Any danger seen in those yet? The micro equities have been around for 6 months. What "danger" has cropped up with them?

Really...the OM tells us all we need to know...it's a volatile contract no matter what the granularity

So what danger will crop up with a micro-CL?
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