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Just for grins I submitted the following comment to the Midam website.
"Because I am a small trader, I have been a fairly regular user of the
Midam exchange, probably about 100 or so per year over the last 3
years. (Altho I have had periods of success, I've not been successful
overall, but that is because my strategies are not fully developed,
certainly not because of fills or anything like that. In fact I
occassionally relate to others how satisfactory my fills have been. I
have used all contracts except interest rates, plat., AD.
I have a couple suggestions. Grains: The 1/5 size contracts have small
profit pot'l unless the markets are volatile, particularly for oats and
corn. Why not consider 1/2 size contracts? Since corn has pretty good
usage, but oats does not, why not first try a 1/2 size oat contract to
replace the 1/5?
interest rates: The 1/2 size bond contract is still too big for me.
But I suppose since you already have a 1/2 size 10yr note contract
(which is less volatile than 30yr bonds) it might be redundent to offer
an additional 1/5 size bond contract. But if you had one I would
consider it for position trades. (At least in the stock indices several
exchanges offer different size contracts on the same exchange.)
stocks: Even the emini is kindof big for a small position trader. How
about an sptiny at 1/5 the size of the emini. This would be of use just
for position traders. Not sure how much interest there would be for
this, though, since so many people want to daytrade rather than pos.
trade the stock indices.
currencies: how about a 1/5 size JY contract in addition to the 1/2
size? I'm not sure the 1/2 size contracts on overseas curr. have much
advantage over the fullsize, since Midams don't trade overnight. (The
added risk of not being able to get out overnight counteracts the
smaller risk due to size.) The SF and DM already give a range of risk
to select from (since the DM is somewhat less volatile than the SF). So
the JY (and/or AD) would be good ones to start with for a 1/5 size
contract. Or, could the CME's group of market makers who already keep
the Globex currencies in line, do the same for Midams overnight so one
could run overnight stops? [As I understand it, EFP stops are not avail.
for less than a full size contract's amount.]
metals: The 3 existing Midam contracts seem a good size. Apparently
you tried in the past a 1/2 size copper contract and it didn't get any
interest? I suppose that's because copper is not a real big contract.
softs: I think you would get a *lot* of interest for a reduced size
coffee contract (perhaps a 10,000 lb contract = approx 1/4). The coffee
contract is known for v. good trends, but is also v. big and a NY market
which people tend not to like. Personally, I'd like to see a smaller
cotton contract, too. At $500 per big point, but only $1000 margin I
think a lot of beginning traders underestimate the "size" of this
contract. Again, how about a 10,000 lb contract for cotton?
I'm not sure that a smaller sugar, cocoa, or oj contract would get
interest. Though a smaller size *should* interest a smaller trader, and
a non-NY exchange might attract some.
energies: I suspect some interest in a smaller energy contract would
exist for some of the same reasons as coffee above. Maybe just crude
and ng since ho and hu follow crude (tho there's a fair amt. of retail
interest in the heating oil and unleaded markets). Or, you could try a
500 bbl (1/2 size contract) in crude, and a 10,000 gal (1/4 size) ctct
in the products. NG, being very volatile, might benefit from a 1/5 size
contract.
I've written this from the perspective of a small speculator. I know
there are many sm. specs who start out, and then leave very soon because
they can't practice good $mgmt. due to the size of the "regular"
contracts.
There is a fair amt. of hesitation among both traders and brokers, in
using the Midam due to lower volume. My experience says this isn't
really an issue here. But you might try some PR to spread the word.
Several others on a mailing list I am on, expressed interest in smaller
soft and energy contracts."
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