Micro CL contract - support the introduction by CME - petition

[Overnight]

The very fact that there is so much participation by folks in this thread leads me to believe that a micro CL contract will work. As impassioned as the few folks in this thread are about it, imagine all the other folks at other forums, and other non-forum venues. People are now talking about this. That is how something like this gets done.

@bone, I am surprised at your resistance to the idea of a micro CL. I do understand that in the world of spreads that you do, it may seem unnecessary. Invasive?

But look at it this way...6 months ago you were walking along, and then the e-Micro equities came out. Didn't affect you one bit, did it? I think the same thing would happen were micro CL to come to fruition.

Worst that can happen is that is comes around, fails, and goes away. No harm, no foul.

 

[bone]

A micro CL contract has absolutely no bearing on my trading. None.

I would opine that this is something already in the pipeline for the CME.

ICE already has a mini CL contract, so it’s likely just a matter of time.

My concern is the OP’s background. I hate to see anyone piss away money - it’s all too easy to do. My suggestion was that he trade USO or even CL Spreads - the idea being to learn and to build up his account equity.

@bone, I am surprised at your resistance to the idea of a micro CL. I do understand that in the world of spreads that you do, it may seem unnecessary. Invasive?

 

[steve2222]

Maybe the CME will. For all I know, they are going to introduce a micro CL contract next week.



You should understand something about micro contracts - let's talk about the Gold micro contract. Specifically, the slippage. The tic size is one-tenth the full contract size, but the bid/ask is almost always wider on the Micro, and the exchange fee on the Full is $1.50 and for the Micro is $0.60. ..........

I understand your point, but for me the relationship of all-in r/t costs is no different with the micro Gold than it is for the micro equities.

For instance: with me with AMP (using Sierra and CQG data) my r/t costs are:

YM: $3.60
MYM: $0.74
... so MYM costs are 21% of YM cost.

GC: $4.24
MGC: $0.94
... so MGC costs are 22% of GC cost.

Illustrating in a relative sense MGC r/t costs are no different than MYM.

 

[bone]

Are you planning to scalp or swing trade? Will you be holding positions overnight?

I understand your point, but for me the relationship of all-in r/t costs is no different with the micro Gold than it is for the micro equities.

For instance: with me with AMP (using Sierra and CQG data) my r/t costs are:

YM: $3.60
MYM: $0.74
... so MYM costs are 21% of YM cost.

GC: $4.24
MGC: $0.94
... so MGC costs are 22% of GC cost.

Illustrating in a relative sense MGC r/t costs are no different than MYM.

 

[steve2222]

Are you planning to scalp or swing trade? Will you be holding positions overnight?

Day trades, not holding overnight.
Really I see micros as a better learning/experience tool for traders than using SIM - ultimate goal should be to prove the trading strategy and trader confidence on the micro but then move to the emini contract.
Push for micro CL is to give traders who don't live in the USA timezone a better selection of viable micro contracts to trade in their timezone to gain the trading experience on and then move to the equivalent emini.

 

[Overnight]

...
Push for micro CL is to give traders who don't live in the USA timezone a better selection of viable micro contracts to trade in their timezone to gain the trading experience on and then move to the equivalent emini.

Well, that makes no sense at all. If the CL is not moving during the trader's timeframe, the micro CL will not magically be moving MORE.

In fact, the B/A spreads will be worse on the micros during off hours.

And the CL is not a mini. The CL is the big daddy, the QM is the mini, and micro CL would be the, well, micro.

And I predict that the symbol code for the Micro CL, when they come out with it, will be MCL.

Wouldn't be the first time. But 8 years ago we were in a different era?

https://www.cmegroup.com/tools-info...et-data/20110801_StandAlone.html#pageNumber=1

 

[Real Money]

micro CL is to give traders who don't live in the USA timezone a better selection of viable micro contracts

Well, that makes no sense at all.

He's saying that the US index micro's are not liquid during off hours. That's why he wants a micro CL. steve2222 wants micro contracts to trade that are NOT based on US timezone.

If I remember correctly, CL has a lot of action during the Asia/Middle East/Europe timezone....

 

[steve2222]

He's saying that the US index micro's are not liquid during off hours. That's why he wants a micro CL. steve2222 wants micro contracts to trade that are NOT based on US timezone.

If I remember correctly, CL has a lot of action during the Asia/Middle East/Europe timezone....

Said better than I could/did.

Exactly what I meant.

 

[bone]

If I remember correctly, CL has a lot of action during the Asia/Middle East/Europe timezone....

Maybe 25% of the US hours trading range - maybe.

During European hours ICE Brent is the leading contract, and WTI is not necessarily highly correlated with BRN these days. There’s not much North Sea Crude finding its way to the US Gulf Coast. Outgoing inventory only.

 

[heispark]

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

Why don't you try ETF or leveraged ETF tracking /CL?