Micro CL contract - support the introduction by CME - petition
- Thread starter steve2222
- Start date
So in other words, you might be able to scalp enough micro CL to maybe cover your exchange fees and brokerage. Because those don’t become “micro“ in a correlated fashion.
CL last was 57.54 so the value of a contract is $57,540.00
Now, my point is that at a 1/10 sizing, the contract for 100 barrels (physical deliv.) is pretty much useless. Too small for anybody in the industry to care about.
Retail would want to trade a $5,754.00 contract? Why? Might as well just trade the calendar.
Now, the real pressing issue is how can we get more liquidity in the Ultra Bonds. The market likes to widen out to a two tick spread sometimes. What can be done by CBOT to get some more size on the book? Ultra Bond futures are the cat's ass.
Ultra bonds are what needs innovations. Didn't I hear something about this in the news recently?
Somebody get CME and CBOT on this.
NEED MORE LIQUIDITY ON THE BACK END OF THE CURVE!
Now, my point is that at a 1/10 sizing, the contract for 100 barrels (physical deliv.) is pretty much useless. Too small for anybody in the industry to care about.
Retail would want to trade a $5,754.00 contract? Why? Might as well just trade the calendar.
Now, the real pressing issue is how can we get more liquidity in the Ultra Bonds. The market likes to widen out to a two tick spread sometimes. What can be done by CBOT to get some more size on the book? Ultra Bond futures are the cat's ass.
Ultra bonds are what needs innovations. Didn't I hear something about this in the news recently?
Somebody get CME and CBOT on this.
NEED MORE LIQUIDITY ON THE BACK END OF THE CURVE!
You lack vision.
Why don't you just spread the front month against the next expiry Overnight? Why would you need a five thousand dollar contract?
What do you want this micro CL for anyway?
What do you want this micro CL for anyway?
Don't try to champion your UB cause here in a micro CL thread. Oy!
Why do you need more liquidity in the ultrabond? There is a time and a place for everything. Your UB moaning in this thread is not it.
T
tomtr27
Done.
And that’s pretty much the point - the Commercials that hold Junk and Municipal Paper are not looking for “micro” contracts to hedge.
“Micro” anything will only attract short term speculators looking to pick each other off. Which is why if you’re smart and marginally capitalized you’d trade USO or spreads or micro emini equity contracts.
Micro CL for anyone not experienced trading thin, gappy, highly volatile markets will be predictably sodomized.
I’ve never seen someone scalp Gold or CL and not take some serious (sometimes fatal) lumps before they got it right.
So, careful what you ask for. Become highly proficient at QM first because QCL is a whole other world. Gaps, sweeps, and terror.
“Micro” anything will only attract short term speculators looking to pick each other off. Which is why if you’re smart and marginally capitalized you’d trade USO or spreads or micro emini equity contracts.
Micro CL for anyone not experienced trading thin, gappy, highly volatile markets will be predictably sodomized.
I’ve never seen someone scalp Gold or CL and not take some serious (sometimes fatal) lumps before they got it right.
So, careful what you ask for. Become highly proficient at QM first because QCL is a whole other world. Gaps, sweeps, and terror.
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Maybe if CME/NYMEX had created the QM with the same tick size as CL it would have been more successful to date. 0.025 tick size is crazy - IMO.