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Good, so its really true electronic trading will result in better ( more honest)
executions, so the brokers will have to charge more for theses kind of executions (I
respect that everyone has to earn a living anywhich way) maybe the brokers will become
really professional executors, that's fair enough, let's pay them..Maybe the small guys
now have a better chance now.
The other day someone wrote about French Exchange becoming electronic just this
April and executions also improve and ALSO trends start to come back again (might be
lesser noise from
locals manipulations and gunning for stops of the public), maybe that's why exchange
seat values are collapsing, the major exchange are realizing they have to join the world
and not protect their floortraders anymore for the good of long term for everyone.
Welcome to the World!!
Manning Stoller wrote:
> 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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