EUREX will change the tick size on DAX on December, 21

DAX actual tick size 0.5 for 12.5 Eur of value
Mini Dax actual tick size 1 for 5 Eur of value

After 20.12.2020:

DAX new tick size 1 for 25 Eur of value
Mini Dax remains the same


I've always thought that at EUREX there are idiots, but now I think they are brainless!!!

 

https://www.eurexchange.com/exchange-en/find/circulars/circular-2069732

 

Bad news if you trade the DAX and rely on the 0.5 spread.
Exchanges are always making changes that spoil contracts.

Although 1 pt is not a bad spread size for DAX considering how volatile it is.
I mean if they were starting the big DAX today, it would probably have a 1pt spread instead of 0.5.
Back when it was 5,000 or whatever 20 years ago. 0.5 made more sense.

 

GREAT!!! Eurex made the smart brainy move!!!


we hate tick size that is extremely fine.
when tick size is sooo tiny, elderly people with poor eyesight have problem looking at looong string of numbers.

One of the worst product is NQ ( eg 11124.25) from CME.
tick size is extremely extremely tiny (0.25 point), and it has 7 looong digits.
And the DOM ladder has to be extra extra tall due to its tiny tick size.

 

Are you serious?
Dax is not a valid instrument to trade with the DOM, like the NQ
The problem is that you have a major cost when you enter the market
from 12.5 Eur to 25 Eur!!! and will be more difficult to be executed

If you think that you are always able to enter with a limit order you are deadly wrong

 

I am serious.

I use ladders for most of my trades.

I hate tick size that is soo tiny

 

For some traders this could be good news, for others it is bad news

 

Well with a cost of 25 Eur instead of 12,5 when you enter a trade don't know if it's good for traders, not for scalpers for sure

 

If you put limit orders into the book, you got a better chance of getting filled with 0.5 tick spread. Market is thinner at every level.

With 1pt spread market depth is going to thicken.
May even more than double at each level compared to now.

 

Find me a scalper that is happy to pay double for a trade
25 Eur instead of 12.50 for 1 contract, and having also less chance to be executed well

At this point why not to increase the tick size of the ES from 0.25 to 0.50?
From 12.5$ to 25$ every time you enter a trade

Watch here how stupid instrument is the FESX (eurostoxx50)
Nobody scalp the FESX, only institutionals and not in scalp mode