Best market to buy and sell at the same price (to churn commissions)

Discussion in 'Financial Futures' started by chinook, Mar 17, 2011.

  1. BigSalad

    BigSalad

    If he were to trade exchange listed calendars or flies of Eurodollars, wouldn't he be able to do twice/four times as many contracts with just a tick of loss?
     
    #11     Mar 17, 2011
  2. Maybe... He'll have to check whether his broker counts an exch-listed spread/fly as two/three contracts or just one. Moreover, one of the requirements was high liquidity and I am pretty sure that no fly or spread satisfies has liquidity quite like the front contract.
     
    #12     Mar 17, 2011
  3. sometimes exchange traded spreads (saw this in NG and ED calendars which skips a month such as june/august ) are quoted like lots of offers in say 103, 102 is empty and 101 has lots of bids. If you see this, put an offer to 102, wait for to filled and then put a bid to 102.
    Most likely you will not suffer a tick loss and have double volume compared to outright. When doing this make sure you are not near to daily highs/lows of spread because they have tendency to enlarge the bounds when very near. Or maybe you can scalp a tick :)
     
    #13     Apr 1, 2011
  4. 1) Trade the eMini S&P between 11am and Noon, Chicago time. :)
    2) It tends to slow down and it trades better than Eurodollars. :cool:
     
    #14     Apr 4, 2011
  5. What I do to churn commissions is sell far out of the money options spreads on some liquid stock.

    That way you can actually *make* money as well as churn commissions.

    As a matter of fact this has been very profitable!

    Yes you need to be a little careful in choosing.
     
    #15     Apr 4, 2011
  6. Mr_RC

    Mr_RC

    You should realize that having "no loss" is the way to profits - so you are basically asking for the same as the other 99 or whatever % of this forum.
     
    #16     Apr 4, 2011
  7. Thanks for the suggestion. I need to figure out if I can trade the exchange traded spreads with my account.
     
    #17     Apr 4, 2011
  8. Youre right in thinking eurodollar futures. Use the spread packages to scratch your trades instead of the outrights though. You'll generate more trades at once which is what you seem to be trying to do and you'll minimize the chances that you'll get trucked all of a sudden for a loss.

    Dont put any credence in the bid ask size in the outright eurodollar contracts. Over the past few weeks there have been numerous times throughout the day when the bid size was 5k+ and the ask size a few hundred, then in a split second someone sells a couple hundred contracts into the 5k+ bid and boom, not only is the 5k+bid gone, but the market has traded through the next bid price lower. (9842.0 bid on 5k, then in a split second the market is 9841.0 ASK, for size.

    Point being, use the 3 month spread packages.
     
    #18     Apr 21, 2011
  9. Pointless for his broker to count a spread or fly as a single contract unless he is charging exponentially in fees for that 1 contract. Never heard of this but if there are brokers that do this DO TELL!!!
     
    #19     Apr 21, 2011
  10. Not true. Having no loss on every trade could mean scratching every trade (which he is aiming to do), and you can't make money scratching every trade. Sorry to get technical.
     
    #20     Apr 21, 2011