hello, I have a really basic qns on globex/floor trading. I am using IB to trade Lean hogs. i know its traded very thinly on globex, but lets say for some reason I take a position on Globex, can I get out of the position on the floor? i.e. If i go long on globex, i simply sell it via the floor when it opens and i will be flat. Correct?
oh so i cant do that? then i will be left with a long on Globex and a short on the Floor??? that sucks.
i'll do you 1% better. 100% the same thing. i think the only difference is that you can't trade out as far, but i think its something like 9 months or a year out on globex (who needs to go further out anyway). globex is pretty much the nail in the coffin of the floor.
you bet you can. the front month's for globex are pretty good though. i have been pretty happy with them but with back months modify cancel sometimes can be iffy
I trade on the floor and arb between it and the screen, and yes, hogs are fungible traded on the floor and Globex. I probably do about 300-400 contracts on Globex every day, depending on volume and the opportunities that are present. If you do trade online and route to the floor, you'll get pretty good fills as there are good locals down here that'll take the other side (I'm one of them )
I was wondering if Mr. Floor trader thinks that side by side is here to stay or if all trading will be done on globex in 5 years. For what it is worth I think i get better fills on side by side products than electronic only product with my IB account
You just need to open an account with a clearing firm that allows the fungability. IB does not. On the flip side of that you can get membership, lease a seat and your commissions will be a fraction of what IB charges you.