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Tom,
I understand your concern on the stops since I plan to trade mini's on
Globex (terminal in my office, luckily), but the stop situation is the
same as other Globex markets. They expect the broker who accepts a
Globex stop order to act just like a broker on the floor who accepts a
stop order. You pay attention to the market and when the price is hit
then you go to the market. This seems reasonable to me. A floor broker
accepts this "risk" and only gets paid about $1 a contract. I am sure
you are getting paid more, so you could certainly keep an eye on it.
People off the floor often think that stops are this automatic thing
that just gets filled when the market trades there, but in reality,
people have to pay attention. They have dozens of orders in their decks
and they are able to keep track.
As a broker on Globex, you replace the pit broker, so that puts the onus
on you. When I traded APT on LIFFE, it worked the same way.
I realize this is only 30 lots and under, but with the ability to see
size at 10 price levels above or below a market, do you really want
EVERYONE to know where your stops are??????
You can place stops in the big SPOO pit also. I assume the mini is
fungible with the big.
My bigger concern is the .25 minimum tick size. With the extra costs
there plus the extra commissions of trading the mini, I wonder if people
are really going to trade it. If you are a 2 lot SPOO trader now, my
understanding is with the new contracts, you have a choice of trading 4
new big SPOO's in the pit or 20 mini's on Globex. What is the incentive
to go to Globex???
Eric Michaels
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