IB: How best to unwind Long 1 Globex Mini (NQ) and Short 10 Micros?

Discussion in 'Order Execution' started by Aisone, Aug 9, 2022.

  1. Overnight

    Overnight

    Because, you dumbfuck, you cannot calendar the same contract in same contract month, otherwise that is a wash trade. That is illegal and gets you fined by the CFTC. I know he will not see this, because he, as a dumbfuck, has me on ignore, which proves he is not a real trader.
     
    #11     Aug 9, 2022
  2. Aisone

    Aisone

    Smart answer would be that focusing primarily on minis equals cheaper commissions dollar for dollar, but impetus is that order constructing and trading the larger qty micros is more of a pia, especially in fast market conditions, compared to the efficiency of minis.
     
    #12     Aug 9, 2022
  3. Aisone

    Aisone

    Someone can't be long minis and short micros of the same underlying/month?
     
    #13     Aug 9, 2022
  4. Overnight

    Overnight

    Of course you can. I believe what dumbfuckery over there was suggesting is to be long and short the micros on same contract. Not allowed. That's it why I assume you were spread between micro and mini.
     
    #14     Aug 9, 2022
  5. Aisone

    Aisone

    He's suggesting just trading micros because if you bought, for example, 30 micros instead of 3 minis, you could liquidate a few as desired, ie not in multiples of 10, which is the limitation if just minis are traded in opening and closing positions.
     
    #15     Aug 9, 2022
  6. Overnight

    Overnight

    But you have a long and short position in same contract month. That is not possible in same account. So you would have to do it across two accounts. And that is a wash trade. Bad juju.

    It seemed like your idea was doing an intra spread. If I was wrong, and you had another motive, then I am off-base.
     
    #16     Aug 9, 2022
  7. Aisone

    Aisone

    If I buy 3 minis and short 5 micros, I'm long the equivalent of 25 micros. If I just buy 30 micros to begin with, sell 5, I'm long 25 micros, same thing, which is what he's asking why I don't just do that. However, as mentioned, its more commissions and I find the latter in general more of a pia to work with.
     
    #17     Aug 9, 2022
  8. Overnight

    Overnight

    Well, then you have to ask yourself...Why didn't you just do that? I thought you were on a spread play, but you have a different plan.

    Like...Why would you long 3 minis and short 5 micros? What's the point? Risk mitigation?
     
    #18     Aug 9, 2022
  9. Aisone

    Aisone

    Yes
     
    #19     Aug 9, 2022
  10. Overnight

    Overnight

    Exactly. We're on the same page. Have fun storming the castle tomorrow, and good luck! You'll need it! Pray you are on the right side of the trade tomorrow morning, because you are so far and away 1:1 parity, you could get fucked if you have a 2.5:1
     
    #20     Aug 9, 2022