$1.5 fee for 10 tons of corns

Discussion in 'Commodity Futures' started by qll, Oct 23, 2006.

  1. qll


    I trade futures in a different country.
    I pay $1.5 for 1 contract of corns, and 1 contract=10tons of corns.
    I will only pay 1 way fee, if I close the trade within 1 day.

    I wonder if 1 contract in US or UK market is 10 tons or 100 tons.
    It seems
    Agriculture (Pit/Floor Traded) USD 6.00 USD 6.00 USD 12.00 by IB is much higher than what I got.
  2. qll


    anyone can answer this?
  3. Steve_IB

    Steve_IB Interactive Brokers

    The contract size is 5,000 bushels.

    A bushel is approximately 56lbs, so one contract = 280,000lbs = 140 short tons = 127 metric tonnes.

    Also the commission you quotes is for ags on CME. Corn is listed on the CBOT, thus, our commission would be $6.10 round-turn for the electronic contract, and $8 round-turn for the pit traded contract. (If you're day trading volume, then rates would be cheaper with the unbundled commission scheme).
  4. I am doing this to try to save you money, if you don't know how to convert from bushels to metric tonnes, or how to look it up on the internet, then you shouldn't be trading anything.

    And the IB reps should not be using "about 56 pounds" in the conversion. What is so hard about using the proper metric conversion?
  5. Steve_IB

    Steve_IB Interactive Brokers

    The original poster didn't specify metric ton (tonne), long ton or short ton, and given the amount of nationalities represented on ET I wasn't going to assume one or the other, so gave him info on all. No problem not knowing how much a bushel is, it's less well known than a catty or a tael.

    qll - Corn is traded on the CBOT, and the specifications are available on the website, www.cbot.com. There's also a mini-corn which is 1/5th the size but it barely trades.
    Where are you trading Corn with a 10 ton(ne) multiplier? This is small contract compared to those on CBOT, TGE and Euronext
  6. qll


    i trade chinese futures.

    currently i pay 4 yuan for 10 tons of corn. one ton costs around 1400 yuan. leverage is 10. minimal tick is 1. so if i buy at 1400 and sell at 1401, i pay 0.8 and get 0.2. one us$ = 8 yuan.

    i want to try to trade in IB. i just want to know if the IB fee is higher than what i pay or less, in term of percentage. i want to know if i scale 1 tick, how much % i need to pay to the broker etc.
  7. e-miNY


    Where do you get access to trade on the Dailian exchange? Can your account trade Shaghai copper too?
  8. qll


    i am shorting copper, but fee is too high. i pay 3/10000 one way. highest among all futures. i must do long term.

    local chinese traders are pretty stupid. very easy to make money here. for those reasons

    1. they translate foreign information wrongly.
    2. all analysts bullshit in their own way.
    3. most traders are pure technical.

    for example.
    i asked 20 traders what positions they will open on copper 1 week ago. all said long. all analyst said we should long, and used some translated english information. i read the original, it is half bull and half bear, but the analysts only used long side, when they translate it into chinese.

    you need to read Chinese to trade in china. The software is all in Chinese.

    why do you want to trade in china? because only 1% of traders in china has discipline?
  9. e-miNY


    The chinese stuff is fine. I am from HK. Where are u from? Are you getting good charting service?
    Can u clearify something? Is Corn 10Tons / Contract? How big is a copper contract? 10000 lbs? Because US is 25000 lbs.
    I have to agree China is a unmature market and money can be made easily.
    How can you trade corn in the morning? and stay up for the US market? No need to sleep?
  10. e-miNY


    Are the chinese grains as wild as the chicago grains lately? We are getting pretty good moves on a daily bases. 20+ cents range in all the grains. Or China just gap open limit up and no intraday range?
    #10     Oct 25, 2006