Seeking for the cheapest liquid asset

[WiktorK]

Whats the cheapest asset to trade?

Consider everything:
-fees
-spreads
-must be very liquid

Should be offered by IB, could be everything (stock, futures contract, option ...)

im looking for something to scalp with a decent frequency (targeting at least 300 trades per day).

Any suggestions?

 

[Real Money]

You have to say how much notional exposure (size) you are talking about per trade.

 

[WiktorK]

You have to say how much notional exposure (size) you are talking about per trade.

Lets say it is a standard 1 lot (100.000$)

 

[Real Money]

Basically, this is the wrong question.

You are going to get more profit from looking at other things than just minimizing fees and spread. The dollar volatility is important for this, also the tick size is a factor.

For 1 lot trades ES, UB, ZB, NQ, YM are all good. But, if you can get commission free broker, then fees will be very small for stocks. This has changed recently. You just need more money in your account if you want to short stocks for size.

 

[WiktorK]

Basically, this is the wrong question.

You are going to get more profit from looking at other things than just minimizing fees and spread. The dollar volatility is important for this, also the tick size is a factor.

For 1 lot trades ES, UB, ZB, NQ, YM are all good. But, if you can get commission free broker, then fees will be very small for stocks. This has changed recently. You just need more money in your account if you want to short stocks for size.

So what things should I be looking for if my strategy is basically scalping for tiny profits?

Currently Im trading mostly EURUSD but thought I could move on somewhere else to avoid spreads and commisions, as they are taking a huge part of my gains

 

[Real Money]

Personally, I think you should have an unfair advantage (an edge) first.

I like index futures and rate futures personally. There are a lot of things you can check to make sure you are not gonna get blindsided. You can watch the related instruments and chart and check all kinds of spreads and observe the relative performance of everything. You can check rates on every duration from 5 years out to 30 years. There is a ton of information that is available to retail traders trying to make money on bonds and equities. Tons of money in these two.

With EUR/USD there are a ton of unknown risk factors, and there are so many currencies that it is hard to know how they will react to each other at any given time. Also, the FX market is affected by news, international bond markets, trade, and so many other things. It's hard to trade.

 

[ElectricSavant]

I would imagine NQ is one on the top of this list. I could be incorrect though..

Es

 

[Real Money]

I would imagine NQ is one on the top of this list.

NQ has the largest dollar volatility and the largest ($20.00) tick size of the index futures. UB is the largest dollar volatility rate future, and both ZB and UB have the large $31.25 tick size.

Also, rate futures traded on ECBOT have LESS exchange fee than CME and ECBOT index futures.

 

[same-o]

you can scalp ub for a tick 100 times a day, maybe less .. 31$ a tick and com is 3 $ something rt

 

[ET180]

If you want tight spreads on options as well as the underlying, then look at something like SLV, USO, or UNG.