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I don't think that most brokers actually charge the same for a mini as a full S&P.
I charge my clients 1/2 the rate of a full contract. Trading 5 minis will still cost
more than 1 full but I truly believe that the advantages more than compensate.i.e.
speed, less slippage, I think, transparency, ability to scale in and out, etc.
Manning Stoller.
Earl Adamy wrote:
> 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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