anyone still interested here? If the drought continues and snowfall remains light, grains should do extremely well this year.
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Trading grains
- Thread starter Marsh
- Start date
I thought some might be interested.
CHICAGO, March 25âComplementing its existing grain and soybean complexes, the Chicago Board of Trade (CBOT) will launch mini-sized Corn, Wheat, and Soybean futures on Monday, April 7, 2003. These new mini-sized grain contracts will trade in the CBOTâs open auction marketplace, and mark the final phase of conversion of MidAmerica (MidAm) Commodity Exchange contracts to the CBOTâs mini-complex.
The MidAm, an affiliate of the CBOT, was decommissioned in 2001. The first phase of conversion to the CBOTâs mini complex, completed in the third quarter of 2001, included U.S. Treasury Bonds and Notes, Gold, Silver, and Eurodollars. These contracts are traded exclusively on the CBOTâs electronic trading platform.
CBOT® Chairman Charles P. Carey said, âFollowing the close of trading on April 4th, open interest in the MidAm products will be transferred to the corresponding CBOT mini-sized products, resulting in enhanced spread opportunities for our members and customers. Additionally, CBOT customers now will have the benefit of using the exchangeâs electronic order routing system for mini-sized Corn, Wheat and Soybean contracts. The electronic order routing system routes orders electronically into the pit, allowing orders to be filled more quickly and efficiently.â
CBOT market data fees for mini-sized Corn, Wheat, and Soybeans have been waived. The contracts will be traded Monday through Friday, from 9:30 a.m. to 1:45 p.m. (Central Time).
For more information on CBOT markets and members, log onto the exchange web site at www.cbot.com
CHICAGO, March 25âComplementing its existing grain and soybean complexes, the Chicago Board of Trade (CBOT) will launch mini-sized Corn, Wheat, and Soybean futures on Monday, April 7, 2003. These new mini-sized grain contracts will trade in the CBOTâs open auction marketplace, and mark the final phase of conversion of MidAmerica (MidAm) Commodity Exchange contracts to the CBOTâs mini-complex.
The MidAm, an affiliate of the CBOT, was decommissioned in 2001. The first phase of conversion to the CBOTâs mini complex, completed in the third quarter of 2001, included U.S. Treasury Bonds and Notes, Gold, Silver, and Eurodollars. These contracts are traded exclusively on the CBOTâs electronic trading platform.
CBOT® Chairman Charles P. Carey said, âFollowing the close of trading on April 4th, open interest in the MidAm products will be transferred to the corresponding CBOT mini-sized products, resulting in enhanced spread opportunities for our members and customers. Additionally, CBOT customers now will have the benefit of using the exchangeâs electronic order routing system for mini-sized Corn, Wheat and Soybean contracts. The electronic order routing system routes orders electronically into the pit, allowing orders to be filled more quickly and efficiently.â
CBOT market data fees for mini-sized Corn, Wheat, and Soybeans have been waived. The contracts will be traded Monday through Friday, from 9:30 a.m. to 1:45 p.m. (Central Time).
For more information on CBOT markets and members, log onto the exchange web site at www.cbot.com
Quote from jaming5002:
Trading grains profitably depends alot on your time horizon. If your thinking of scalping profits from off the floor, dream on. There's going to be a time delay from the human handling as was mentioned by the previous posters. If your able to find a brokerage that routes directly to the pit broker, that's going to help a bit........
I wish i had seen this thread earlier!!! i was a runner at the CBOT 7 years ago when i was first trying to get into the trading business. i honestly don't see how someone could daytrade these markets off floor. i remember looking for "fills" an hour after the market was closed.....somehow an order would end up on the opposite side of the pits from where it was actually filled. brokers would ignore us while we held orders right in front of his face. i can't imagine sending a mkt order under this system!!!
sometimes the corn pit would be so crowded it was almost impossible to get to the right broker, especially if they were down at the bottom of the pit. the bean and wheat pits weren't quite as crowded but they had their moments. the bigger customers could get their orders signaled into the pits but even then there was a certain amount of slippage.
i heard one story about a trader having a heart attack and the other traders went right on trading while the poor guy was on the ground. in all, it was a great experience but to be honest i don't miss it for a second and i am very happy trading electronically, off floor.
Quote from C Robinson:
I wish i had seen this thread earlier!!! i was a runner at the CBOT 7 years ago when i was first trying to get into the trading business. i honestly don't see how someone could daytrade these markets off floor. i remember looking for "fills" an hour after the market was closed.....somehow an order would end up on the opposite side of the pits from where it was actually filled. brokers would ignore us while we held orders right in front of his face. i can't imagine sending a mkt order under this system!!!
sometimes the corn pit would be so crowded it was almost impossible to get to the right broker, especially if they were down at the bottom of the pit. the bean and wheat pits weren't quite as crowded but they had their moments. the bigger customers could get their orders signaled into the pits but even then there was a certain amount of slippage.
i heard one story about a trader having a heart attack and the other traders went right on trading while the poor guy was on the ground. in all, it was a great experience but to be honest i don't miss it for a second and i am very happy trading electronically, off floor.
What do you trade now?
Quote from C Robinson:
I wish i had seen this thread earlier!!! i was a runner at the CBOT 7 years ago when i was first trying to get into the trading business. i honestly don't see how someone could daytrade these markets off floor. i remember looking for "fills" an hour after the market was closed.....somehow an order would end up on the opposite side of the pits from where it was actually filled. brokers would ignore us while we held orders right in front of his face. i can't imagine sending a mkt order under this system!!!
sometimes the corn pit would be so crowded it was almost impossible to get to the right broker, especially if they were down at the bottom of the pit. the bean and wheat pits weren't quite as crowded but they had their moments. the bigger customers could get their orders signaled into the pits but even then there was a certain amount of slippage.
i heard one story about a trader having a heart attack and the other traders went right on trading while the poor guy was on the ground. in all, it was a great experience but to be honest i don't miss it for a second and i am very happy trading electronically, off floor.
I had the same experiences on the grain floor myself.
As far as the heart attack story goes, I"ve heard it as well but I don't think it's from the grain floor. Probably some financial floor.
Quote from InTheZone:
I suspect these mini-sized contracts will have very poor liquidity for some time. Look at the mini-gold contracts, for example. It has a 40 cent spread, and trades maybe 3 contracts deep on the bids and the ask.
I agree, at least initially. Grains aren't as straightforward as they seem.
But I think there success depends on how well they can attract some floor traders or even some retired floor traders who were tired of standing on the floor all day. Also depends on how many suckers are willing to trade a market they think they understand.