taodr, You're right.. that is pushing it.. I mostly trade just 1 contract.. occasionally I'll have 2 or 3 max on.. and when I do. its when I see a superb set up.. and I take a small profit on the first 2 contracts immediately.. But you're right.. with my account value I'm asking for trouble.. thanks for the reminder
There's some good info on this subject on a recent thread that I created here: http://www.elitetrader.com/vb/showthread.php?s=&threadid=19695
If your doing that kind of volume, why not just purchase or finance a trading membership at the CME? I think you'd save yourself some money.
I have never traded the full S&P 500 futures contract. Would it be less expensive from a cost stand point to trade the full contract at size instead of the ES (32 contracts vs. 160 contracts)?
250 is the limit and you can scale in/out with several 250 lot levels. As far as the Eminis verses the pit. I have traded both and according to the style of trading generaly the better executions and reporting with the Eminis is better. The big contract does not report a bid or offer and the report of your fill is slower than the emini. If your a swing type trader or a position type trader...perhaps this is not an issue for you. Michael B.
I believe those that do trade that type of size have personal reasons why they don't purchase or finance a trading membership at the CME. I have 2 friends that trade that type of size as retail traders (their americans living outside the U.S.) and their not concern with purchasing any CME membership. Also...they still occasionally trade the big contracts but prefer the Eminis for whatever reasons. Trying to figure out why someone with deep pockets trades size in the Eminis and not something else is probably a waste of time. My 2 buddies...I think its more of an ego thing for them to show me while looking over their shoulders they have no fear of putting on that type of size. Strict trade management is a must. Their good intraday traders and don't always put that size on unless its on their favorite trade pattern. In fact...any trader that puts on that type of size on every trade... that's a scary trader. I would rather ask a trader that trades size questions that deals more with their trade strategy or trade methodology.... because you can't trade that type of size for too long if your not a successful trader... unless your one of the Powerball Lottery winners. Just my opinion. P.S. ElectricSavant is right on the mark about better executions and reporting in the Eminis. NihabaAshi
A CME membership only makes sense if you do above 10k round trips per month in CME products. Divide the cost of leasing a seat by the difference between member and non-member fees per contract to get this number.
I'd agree it's a waste of time to try to figure it out when I could just tell you. Here's the answer: The savings on slippage and the speed of execution and reporting in the minis more than make up for the 5x commissions.