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Crowd behavior will still be the same in a hundred years. Mob rules is a human
behavior
across time and culture.
Robert W Cummings wrote:
> 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
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