Futures multiplier - do exchanges ever change it?

Discussion in 'Automated Trading' started by blink18, Apr 22, 2021.

  1. blink18


    Do futures exchanges (Globex, Nymex, Eurex..etc) ever change multiplier of futures contract? I have made an automated system with fixed multiplier parameter (MES=5, MNQ=2, MGC=10 etc.) and in case exchange ever changes specification of their contract (without me knowing about it) my position size could be much different than planned.

    How do you handle this?
  2. FTDK



    Well if i remember correctly it happened once, but they announce it in advance.
    blink18 likes this.
  3. Millionaire


    It is rare but has happened: ICE did it to screw up the Russell 2000 contract.

    The current approach seems to be add a new additional contracts with a different multiplier and have both running at the same time.

    Although i wouldnt put it past CME to halve the NQ and ES one day, if they keep going up and up.. Especially NQ, is almost 300K notional, and could be 500K in a few years if the bubble doesnt pop before then.

    Just keep reading ET, someone will for sure post a thread about important contract changes
  4. I don't trade the NQ, but isn't it "$10/point"?... ~140K notional? ES is $50/point, or ~$200K. (Fortunately there are now "micro" contracts @ 1/10 of the minis.)

    I remember when the ES mini came to the market... 1/5th of the "big" pit-traded contract. I don't know if the pit contract is till traded, but if it is would be $1MM per. (Actually, $1MM/contract would be great for big hedging needs if there were enough volume/liquidity... unfortunately likely not.)
    Last edited: Apr 22, 2021
  5. Millionaire


    No its $20/point so $280K
  6. Kinda makes it difficult for a little guy to "play a mini".
  7. Millionaire


    I think YM is tamest emini.
    RTY is smaller notionally but moves way more ticks than YM.

    Both can be day traded with $500 dollar margin at AMP.

    If those two mini contracts are still too big then micros are the only option.
  8. With IB you can specify the multiplier when you get the contract. In fact you have to for some contracts which are ambiguous. So if you always do this you will get an error if the multiplier ever changes.

    blink18 likes this.
  9. Overnight


    For the CME, you can sign up to be notified in e-mail for changes like this. Yes, they will always notify something like a contract modification.

    Look up CME communication center or something to that effect.
  10. destriero


    You've gotta be a bot. Most inane posts since expiated. WTF do you trade? NQ is $20.

    Rarely, as previously stated. Also pit SPs were $500 prior to the ES launch. CME halved the Big to trade 5X the coming Mini.
    #10     Apr 22, 2021