CME: The Mini Nasdaq is not so mini...!!

Discussion in 'Index Futures' started by Jankovic, Nov 23, 2017.

  1. Jankovic

    Jankovic

    It's time to reduce the tick value, like the mini Russell 2000

    The current price of the "mini" future contract is around 125,000 $
    Five years ago the contract value was around 50,000$

    The intraday price volatility is double compared to the mini SP or the miniDow

    My trading strategy uses 4 contracts at time and for me it starts to be too risky

    I hope the CME will consider to reduce the point value from 20$ to 10$
     
    SunTrader likes this.
  2. Robert Morse

    Robert Morse Sponsor

    With your example, why not just cut back to 2 contracts.
     
    VPhantom, nbbo, i960 and 4 others like this.
  3. Jankovic

    Jankovic

    4 different entry price....
     
  4. comagnum

    comagnum

    Some of us trader like large price moves - it keeps out trading costs down. The NQ has the lowest trade cost (0.48%) of all of the liquid CME contracts in relation to its average price range (ATR). You can always trade the RTY.
     
    iprome, johnnyrock, VPhantom and 2 others like this.
  5. Jankovic

    Jankovic

    Ok but stop call this contract "mini"....
    My exposure is 500,000 $ every time I enter a trade
    Do you think I am really worried about 3,90 $ round trip?
    RTY is not for me
     
  6. Visaria

    Visaria

    Go trade options.
     
  7. Jankovic

    Jankovic

    No.
    Options are too complicated for me....and generally I close my trades in hours o max 3/4 days
     
  8. southall

    southall

    Money printing by FED means $125,000 is not as much as it used to be.

    1 Large DAX future = $400,000 USD

    1 Large S&P future = $650,000 USD

    $125,000 is MINI these days
     
    Last edited: Nov 23, 2017
  9. chris500

    chris500

    You're confusing the contract multiplier with the minimum tick size. They're 2 different things.

    They did not reduce the minimum tick for the mini Russell 2000. The minimum tick size was 0.10 and still is 0.10.

    What they did was reduce the contract multiplier from $100 to $50. So, before, a single point (1.00) was worth $100, but now 1 point is worth $50.

    0.10 x $100 is $10 <--- the old minimum price fluctuation
    0.10 x $50 is $5 <--- the new minimum price fluctuation

    This change, by the way, was a huge mistake in my opinion. Did volume double as a result? Did liquidity double? Last I checked the answer is no. That means that the only thing this change do was reduce volume and reduce liquidity... in other words, people should be getting fired and the top executives should issue an apology for being dumb-dumbs.

    If 4 contracts is too risky for you, you're clearly undercapitalized for e-minis. The solution is to trade e-micros. There's lots of e-micro currency futures, there's e-micro gold, etc.
     
    i960 likes this.
  10. southall

    southall

    Volume went up by 50%, but not 100% as would be expected.
    But ICE had already lost the contract at that point, so no one at ICE probably cared.
    But that decision to 'split' the contract gifted CME with a windfall 50% boost in profits as CME had no obligation to charge the same half rated fees ICE were morally obliged to charge after they split the contract 2:1.
     
    #10     Nov 23, 2017