|
PureBytes Links
Trading Reference Links
|
At 05:36 PM 6/15/98 -0500, jrehler@xxxxxxxxx wrote:
>Taking Earl's example of commissions you will see my main problem with
>the E-Mini. It's
>not a mini, it's a micro. On a full size S&P the commission of $43
>(which I think is outrageous)
>divided by a full point is 43/250 = 0.172. Which I interpret as 17.2%
>per contract in the hole
>from the get go on any full size S&P trade. Now, look at the E-mini,
>43/50 = 0.86. Which I
>interpret to as 86% in the hole from the initation of the trade.
After checking out what FCM has to charge or is willing to charge to clear
5 mini's it doesn't pan out as an equal comparison to one regular S&P. That
plus the fact your handicapping yourself because of the tick difference as
well. One thing seems to ring true though the FCM's are seeing the benefit
of an all electronic trading futures contract. Better fills thus less
complaints from customers and a wider profit margin to the FCM's because of
less personal and higher volume. If it weren't for the members seat prices
the floor traders and the way the exchanges have been set up to do business
for so long I think it would be all electronically traded in less than a
year. One particular individual who owns an FCM use to be a died hard open
out cry guy but he said you can't argue how much more effective electronic
trading is over the old way, the future is in all electronic trading. Next
is to get the exchanges to drop there monthly exchange fee and go per
ticket charge. They would get more public exposure by making quotes more
affordable as it is with stocks thus increasing trade volume and more money
to be made by the exchanges. Just this whole Internet thing has changed so
many things so fast it hard for everyone to imagine no need for all the
bricks and mortar that house theses huge exchange floors anymore. Just
going to take some time to get people who have made millions scalping the
public to give their advantage up but they will because the major bucks
will be made in electronic trading and that hasn't changed money talks.
They say the new Internet will be 100 times faster than the old one, times
they be a changing. One has to wonder what innovations are on the horizon
for technical trading there is going to be lot more players than we have
now that will make it harder I think, maybe not.
Robert
|