Significant Change to Russell Futures Contract
- Thread starter Robert Morse
- Start date
It's pretty much a nothingburger as far as I'm concerned. Basically just like a stock split, but achieved by adjusting the multiplier. I guess after the dust settles, it might be less confusing to have the same multiplier on TF as is on the sp500 emini.
As far as position sizing, could have just been using IWM instead anyway if TF was too big...
As far as position sizing, could have just been using IWM instead anyway if TF was too big...
I like the change cause it allows small time traders like myself to access another trending market.
I actually don't agree with this. To keep the same dollar value, you now need to buy twice as many contracts, which means you're spending twice the commissions, and I doubt they dropped the commission price per contract. The algo guys of course pay next to nothing so it doesn't matter to them.
But what it will do is increase more spikey nature in my opinion. Where as before you could have more liquidity at each level, this liquidity will now be spread out. You just have to look at how NQ vs. ES moves. The tick value might be smaller for NQ at $5 per tick vs $12.50 for ES, but the NQ can easily blow through 7 or 8 ticks, whereas ES might only drop 2 in a more controlled fashion.
For a new trader, this will have a negative psychological impact, and I also believe easier stop runs, on top of the increased commissions.
Uhhh no it isn't. The miniDow moves 10 ticks per point to the eMini's 4 per point. They trade differently but not substantially so.
The sky is falling aaaaaaahh. Relax. Wait and see what happens.
At one time (most likely before your time) we only had the S&P 500 at $500 per point. Then the eMini came along at $50 per point and the large contract was cut in half to $250 per point. It wasn't long the eMini dominated.
I expect the smaller R2K to do the same if given time and stability at the CME.
Uhhh no it isn't. The miniDow moves 10 ticks per point to the eMini's 4 per point. They trade differently but not substantially so.
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Wrong! The TF moves significantly more than the YM (DIA), ES (SP500), and NQ (NDX100). This is the actual price range avg over 20 days - even though it was taken back in Oct it is always the case over time. In a break out market it can and does easily double the $ range of the ES and YM.
You got the tick & point moves mangled up badly and they do not track each other, maybe at times but making it sound like they are in lock step is dead wrong.
This attached chart shows the dollar move of a single contract over the same time span from 2-12-16 to 9-26-16. You will see the TF & EMD doubled the gains of the ES & YM. If your going to make comments to contradict someone now the facts.. please!
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Wrong! The TF moves significantly more than the YM (DIA), ES (SP500), and NQ (NDX100). This is the actual price range avg over 20 days - even though it was taken back in Oct it is always the case over time. In a break out market it can and does easily double the $ range of the ES and YM.
You got the tick & point moves mangled up badly and they do not track each other, maybe at times but making it sound like they are in lock step is dead wrong.
This attached chart shows the dollar move of a single contract over the same time span from 2-12-16 to 9-26-16. You will see the TF & EMD doubled the gains of the ES & YM. If your going to make comments to contradict someone now the facts.. please!
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Well, maybe when the CME gets TF back things will change again. In 9-10 months we'll know for sure, because Russel 2000 is coming back to Chicago, world series champions...Which has nothing to do with trading...erm...nvm. http://www.cmegroup.com/trading/equity-index/us-index/ftse-russell-index-futures.html
I bet they dont! Why would they?
They will probably charge the same exchange fee rates as ES and YM, $1.17
So in future trading costs for TF may be a lot more than what they are now (1.17 as opposed to 0.65), and some people on this thread are cheering the change.
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i just realised IB charge $0.85 for the emini SIFs not $0.5 as i thought, ($0.5 is the rate for emini FX).
So even though ICE have reduced fees to 0.65, IB still going to charge $0.85 for each contract!
So the cost to buy the same amount of TF using IB will be now be $3.02 (2x1.51) as opposed to the current cost of $2.16!
When it moves to CME it could be even more than that, probably (2x2.02) so $4.04 to get same notional as present, at least with IB.
So even though ICE have reduced fees to 0.65, IB still going to charge $0.85 for each contract!
So the cost to buy the same amount of TF using IB will be now be $3.02 (2x1.51) as opposed to the current cost of $2.16!
When it moves to CME it could be even more than that, probably (2x2.02) so $4.04 to get same notional as present, at least with IB.