How do I get a "local"?

Discussion in 'Commodity Futures' started by heech, Jun 24, 2009.

  1. heech


    I'm a (novice) retail customer looking to start trading ag future options (grain, wheat, oat). Not huge quantities, but probably 50-250 contracts a month once I get into the swing of things.

    I need to go direct instead of my broker's trade desk. I don't have a problem paying a give-up (which I've been told is typically $1 a contract).

    How hard is it to find a firm/locals to route my orders through? Can I just post on EliteTrader and say... send me your contacts?

  2. you only pay the give up if the firm you are trading through doesn't have a filling broker in that pit. Otherwise, they'll likely make you use their guy.

    Not sure quite why you "need" direct access...calling an order in through the trade desk it goes to a floor broker. Only advantage of having your own "go to" guy is information. Good luck getting this access, or this information if you are new. Trading biz is like anything...information takes relationships, and relationships take time.

    I talk to a few guys over at CME/CBOT, but I guarantee you, it took many years to build those relationships. Think of it this way...if you are new and have nothing to offer them...why would they let you leech off of them and their info?
  3. heech


    My main goal is getting quick confirmation on the fill, if/when it happens. My (minimal) experience is that every layer of trade desk adds easily 5 minutes in each direction there.

    Other info is really not that important to me. I can do my own setup on the basis of settlement prices + current future prices, and I'm only placing limit orders.

    If there's a trade desk that could give me fill confirmation within 30s of a fill... that would do the trick too.

    As far as what I'm giving them... I always thought the relationship was, they'd want the order-flow (and commissions) that comes from another customer. Am I just not understanding the relationship correctly?
  4. caroy


    I use Infinity and go through RCG who is the clearing firm. I believe most of my orders are entered electronically to the broker in the pit who sees them on whatever gadget there is that he holds. I see my fills clear on my online statement often within a minute for market orders and within a few for limit orders.

    It is nice to know especially if you trade options. I trade primarily ration and calendar spreads and often elect to leg into them. I like to know immediately because once i fill one leg I often adjust the entry price on the other end. I'm happy with my service and the commissions are reasonable.
  5. heech


    Interesting... can you tell me what you're using to both submit and monitor your fills?

    I'm also with IBs for RCG, so we should have similar applications. Right now, the option made available to me (with Mirus at least) is that I call their trade desk, which calls RCG trade desk... and then the entire process reverses when the trade fills. It's no exaggeration to say it can be 10-15 minutes past the point where I *think* the order should have filled (based on the underlying). Best case, at least 2-4 minutes.

    Are you using RANorder to submit your orders, and is that also what you're using to see the fills? Or are you using RCG Passport?

    Yep, that's exactly what I'm looking for. Quick confirmation so I can get into the other leg of my position.
  6. caroy


    I enter most of my orders through Instant messenger to my IB at Infinity. I see the fills through Passport usually before I ever here the confirmation from the floor. To be fair though I don't think I am trading near the volume that you are.

    My full time job seems to prevent me from watching the markets in an extremely close way. Due to my strategy of primarily selling theta I only trade about twice a month at best. Boring and methodical it is to say the least. So perhaps due to my limited trading each month it seems rather quick to me.

    I remember clerking in the Bean option pit as a high school kid and working for brokers. Sometimes are fills would sit in the little basket by the pit for hours. I'd get tired of looking at them and if it was slow bring them to the desks myself. Some of the runners seemed absolutely clueless to the fact that anyone was actually waiting to know if they were filled. Of course the big customers had direct head set service and knew instantly. Rank has its privilege.
  7. heech


    I love the ability to IM. I'm only just discovering that it's widely used amongst brokers... such a great tool.

    That's actually one reason I'm not especially pleased with my current IB; they will quote me via IM, but insist I place orders over the phone. That's so 20th century.

    I had no idea Passport was immediately updated on fills. I will start watching that more closely, see if that's a better indicator than verbal confirmation.
  8. caroy


    I only noticed it about a month ago. I see it there sometimes 30 minutes before my IB IM's me about the fill.
  9. caroy


    I wonder why they prefer the phone. The written record is much clearer and really allows to see who made the mistake if something goes screwy. Then again I suppose someone else could type on your IM account if it was hacked or something. But the odds of a hacker knowing the mechanics of entering orders is rather low. but what if?????? Scary thought reminds me of people trading their real account thinking it was their demo. ouch.
    #10     Jun 24, 2009