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From my view point floor traders appear to have legal stealing benefits
from their site advantage.
I don't know if this is the case as some leave from there busted. Anybody
out there that can tell us how it really is to be a floor trader?
Robert
At 10:41 AM 5/22/01 -0600, Gary Fritz wrote:
> > However, one common "complaint" was that the
> > opportunity for making big bucks trading in the pits is
> > coming to an end. Profits were being squeezed out by
> > computerized trades, and ever decreasing spreads.
>
>That wasn't my experience in the ND pit. Spreads INcreased from 2-3
>pts in 1999 to 5-10pts in mid-late 2000. That's $500-$1000 per
>contract, folks, equivalent to 2-4 handles in the big SP. You could
>make a nice living flipping those a few times a day.
>
>I finally got sick of it and moved my trading to minis. Now my fills
>are near-instant, the spreads are usually a point or less, I know
>almost exactly where the market is, I can move stops at will without
>worrying about my floor broker throwing a hissy fit, and I don't have
>to deal with the aggravation of getting raped by the thieves in the
>ND pit. (And no, this isn't the whining of somebody who doesn't know
>how the pit is "supposed" to work. My *broker* regularly chewed out
>the floor guys for screwing me so badly.)
>
>I'd happily pay 5x the commission for that service. But I don't have
>to, because electronic execution has driven the price down. I pay
>maybe 2-3x what I'd pay for big-ND execution at my old broker, and I
>come out WAY ahead.
>
>I'm with Mr. "--". The pit boys brought this on themselves. They
>bled their customers dry, and the customers decided to go elsewhere.
>May the pit die a rapid and painful death.
>
>Gary
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