Maybe whatever site you are pulling that ZL list from is WRONG? Ever consider that? The whole 1 / $6,000 thing? Monday morning, just log into your simulator, put on a contract in ZL on your sim account, watch it move, and do the calculations yourself.
No that site seems to be correct, the official CME site gives the same numbers. Pointd divided by minimum tick, times price 1/0,0001 = 10k ticks in one point 10k x 6$ = 60k$ Source: https//www.cmegroup.com/trading/agricultural/grain-and-oilseed/soybean-oil_contract_specifications.html The problem is that there is an inconsistency that I don't understand and if I don't get it properly I can't move on. Anyways thanks to everyone who replied! Now it's 2:40 in the night here and I've had enough of these graphs. I think I've made a lot of progress in terms of understanding the spread. I am still full of doubts regarding the ticks and how to sell something that I don't own, but one thing at the time. Tomorrow I will likely tell you what progress I think I've made and you can tell me if I got it right or if I am deluding myself. Thanks!
I don't think anyone here understands what problem you are having, because everyone here is getting it just fine. Maybe you are over complicating a simple issue? That little blurb on the right, 1 / $6000 for a point is the wrong thing, which is not the CME's fault, but the fault of whatever site that is showing that ZL column.
I’d trade spread according to variance. Based on historical correlation. Get probability distributions. Reversion to the mean.
You said you bought a course. Without going into details can u comment on the theme- is it seasonal, is it TEch analysis? Is it trend breakout or mean reversion? Is it calendars or flys or more complex? Point is to not squeeze info from you but for u to think whether you believe in the system and get feedback if you have doubts on some aspect there are probably many experienced traders who could debunk any myth or shed light on what will NoT work
One other thing like someone mentioned might be good to select 1 platform but do some research on what u should pick - will this only be for spreads? Will u trade outrights? Do you need automated trade management? Autospreader??
So you're saying that this image is wrong? Because from my understanding this is (almost) right and the CME is right too (of course). On the right it says that 1 point = $ 6000 which is wrong, but on the bottom it clarifies that 1 point, which is made by 10,000 ticks is $ 60,000, which agrees with the CME. The CME shows that 1 tick = 0.0001 points and 1 tick = 6 $ Therefore to find out the value of 1 whole point I do 1/0.0001 x 6 = $60,000 Right? So the calculator and the CME agree from what I understand. The data which I think is wrong and that messes up my entire understanding is this one, which says that 1 unit is $ 600, 100 times less than what the CME, the calculator and my calculation says. So which one is wrong? Is my formula (1 point / 1 tick) x value in $ of 1 tick = value of 1 point correct?
I am using interactive brokers with a simulated account. Now I have found an operation which I'd like to trade, but apparently I am in negative of 2 million dollars in my account ahah. I must have done a mess when I was understanding how the broker worked. Is there a way that I can reset my simulated account so that I can try out the operation I've found? By the way if anyone is interested this is the operation I'd like to try. The blue line is the trend of the last 20 years. The red line is the trend of the last 5 years. I'd follow the graph daily and enter whenever I see a bullish sign and operate between the green and red line.
I have a question. Did you open your account AFTER taking that course you talk about ? And did you do that, because of recommendation of you mentor ? If yes, let me guess - you took a course of spreads trading, they showed you seasonalgo (the image you posted is from that), moore research and some technicals. You saw a lot of nice trades, that were done, everything so cool. The lady (?) is from Czech Republic. She is introducing broker for IB. Am I right ? If yes that means you took a course from a person, that I think might be a scam. I even wanted to post it here to prevent ppl some time ago, but after a while I decided - nah, not my problem, they need to do their own research (I haven't used it, I just came across the site in one of my "digging and searching" moments). As I always question everything I encounter I checked a lot fo things and that was my conclusion. And believe me it was smart research.