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I believe most brokers charge about the same commission per contract for the
EMini (50*cash S&P) as the full S&P (250* cash) so unless you're trading big
size, at a lower commission, you're probably looking at $100 per turn vs $20
turn. Tick size for EMini is .25 vs .10 so that's $75 ($.15 * 250 * 2 for round
turn). Total extra about $155 or $.62 per cash.
The EMini provides far better price discovery because bid/ask and size are
reported accurately - not the case on the full S&P. Given a fully electronic
connection to Globex, it should be possible to use the bid/ask/size info to fade
limit orders in a manner which should cut your round turn cost by $.25 per cash.
For those who prefer to scale in and/or out, 5 EMini provide a better vehicle
than 1 full S&P, also many brokers will allow a trader to convert between EMini
and full S&P at 5:1 e.g. enter 5 EMini and exit 1 full S&P. What's hard to
quantify is the quality of fills in the pits vs Globex - keep in mind that one
must compare using limit orders only. Would be interesting to have an answer to
that question.
Earl
-----Original Message-----
From: Robert W Cummings <robertwc@xxxxxxxxxx>
To: Omega-list@xxxxxxxxxx <Omega-list@xxxxxxxxxx>
Date: Saturday, June 13, 1998 6:25 PM
Subject: Trade mini instead if regular S&P
>My FCM suggested that I trade the mini S&P instead of the regular S&P. He
>said he was getting instant fills for everybody and very little if any
>slippage. I would have to trade 10 to one and the mini trades in 25 point
>ticks. I could do this I suppose anybody see a problem with this or tried
>this instead of trading the regular S&P. Does this makes sense?
>
>Robert
>
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