QM VS CL - Crude Oil
- Thread starter hanzahar
- Start date
The main reason they're called minis is because they're a lighter version of the original in terms of the amount of barrels each contract represent. Buying 1 contract of CL is buying 1000 barrels while buying 1 contract of QM is buying 500 barrels.
It has nothing to do with the tick size. That goes for any futures product.
It has nothing to do with the tick size. That goes for any futures product.
Quote from hanzahar:
lol
ok2...
i just thought it works like e-minis...you know...
guess it does only ticks isn't
I understand your confusion actually. The QM miny is only useful for people who need the low margin requirment. If you have enough capital to trade the CL, you should trade it because you will make the same $ as they move (b/c the tick $ per contract relative to margin with both is the same) and it has better liquidity (10x the volume per day and tighter spreads relative to tick size).
EVERYTHING is 2X as large in CL,...forget about the tick size. If CL moves .05, so does QM! If CL moves a dollar, so does QM, you make/lose 1/2 as much in the same dollar movement in QM since the contract is 500 BBL vs 1,000 BBL. Are you trying to confuse this guy further?
Why is this so confusing?
Haha yes it will probably confuse him further. But honestly, like the guy above said if he's REALLY confused, then he should not trade unless it's with a practice account!!
My point was though that although it moves 2x as much, it has 2x the margin.
So the point is if say you have 100k to trade with, it doesn't matter whether you trade CL or QM b/c you will make the same % on your 100k with both, therefore I would say trade the CL cuz it has more liquidity
My point was though that although it moves 2x as much, it has 2x the margin.
So the point is if say you have 100k to trade with, it doesn't matter whether you trade CL or QM b/c you will make the same % on your 100k with both, therefore I would say trade the CL cuz it has more liquidity
Why would you make the same %? It's half the size per contract unless I misuderstood what you're trying to say.
If you bought QM and oil jumps to 200 tomorrow, you'll make half of what you'll make if you bought CL instead. For ever $1.00 move in oil, CL gives you $1000 while QM gives you $500.
If you bought QM and oil jumps to 200 tomorrow, you'll make half of what you'll make if you bought CL instead. For ever $1.00 move in oil, CL gives you $1000 while QM gives you $500.
divide $500 (value of contract) by 100 (number of cents in a dollar) and what do you get?
