high-frequency traders like tiny tiny tick size. elderly folks don't like it. look at jpy futures. I can't tell the difference between 0.0000937600 and 0.00000937600 not all charting software and trading platform are elderly folks friendy. not all of those allow us to make the tick size coarser or reduce the number of digits.
Me waiting for FESX quotation change, 1 point is too much for tick, 0.25 seems so be optimum balance between liquidity and volatility
interesting, why not? number of digits does not matter, number of ticks is important. Now its 3500+ for regular volatility for stock index intraday swing of 0.5% is normal, its about 17 ticks are you comfortable to trade swings of 15-20 ticks wide? it depends of trading style and at least for trend following its hard to trade.
i'm almost retired, now my daughter takes care on trading step-by-step however, my question is not retorical. i've read your posts on ET and respect you much as seasoned trader and it's really interesting to know your viewpoint
It worked great for us, but i guess no longer worked great for the market maker(s). They must of put pressure on Eurex to change it.
lots of debate on which participants the Dax change is good or bad for, obviously there are winners and losers. One thing for certain is it’s really hurt volumes, I struggled to get size done over Christmas. Looks about 20% down versus FESX in my calculations. Not good.
Yeah they (EUREX) seem to have screwed up, like the exchanges always do when they make these kind of changes. So far the DAX futures have been weakened by this change that is for sure. Wider spread, lower depth, lower volumes. Goes against the principle that markets should be made stronger and deeper and more orderly. Under extreme events (eg sudden ECB news) its not going to look pretty, will be less orderly than it otherwise would be and it was volatile enough before this change. But still early days, maybe volume and depth will increase when more traders figure out how to make money off the wider spread. It may be that some of the market making stratagies that were being applied when the spread was 0.5, actually will still work, but were switched off out of caution, might just need to be tweaked and then turned back on.