IB Lowers contract commissions!

Ugh,

I hope there is some good news on the equity side as well :eek:

nitro

 

____
WOOOHH! Thank you. Seriously, I think IB needs to look at giving some incentives to higher volume traders. Why give the exact same level of servcie to someone who pays only 200 a month as someone doing 10 times the volume?

 

The Big Boys. That is why the volume is so much higher via these
trading vehicles than YM. Maybe in 10 years YM will reach the
volume level of NQ?... But never ES?...

 

Tell me if i am wrong..

IB charge $2.40 for 1 YM contract as well as one s&p mini contract?

1 YM point means $5 profit - $2.40?

1 s&p means $50 - $2.40?

How come it´s 10 times more expensive to trade YM and therefore 10 times harder?

It makes systematic trading impossible.

 

callmeput,

cool nick yo.

tick size should be multiplied by volatility. When the NQ moves 1 point, the YM moves around 4 points, and the ES moves about 0.5 point. Therefore, the costs are equal.
Many times one contract is more volatile than the other, e.g. nasdaq is weak so the NQ drops more than the YM. However there is no consistency here - sometimes the NQ is more volatile, sometimes the ES, and sometimes the YM. Even on the same day - if nasdaq is weak and the market leans, NQ will move more. Then if the market coils back up - YM will move more, since Dow is stronger.

One thing about the YM is that it's very fast (due to low volume I believe) - it overshoots a lot and it starts to move early. That does not imply that it predicts the NQ and ES. It just moves, and if the ES and NQ don't confirm, it simply comes back (i.e. - overshoots). The ES is the absolute leader imho.

Anyway, you are paying the same for all contracts on average.


50

 

Well said 50 cent. I agree totally..

 

When markets are liquid enough then you will see 1 tick spreads.
Means -at least in theory- that you "pay" the following spreads:

ES $12.50
NQ $10.00
YM $ 5.00

Well, of course CME could introduce minimum tick size of 0.1 instead of 0.25 for ES ...

 

I think it's more like 10 pts on the YM is equal to four ES. YM trades in pts. while ES in quarters, therefore on an equal move of 10 YM or 1 ES would allow you 10 places to place your order in the YM while only 4 in the ES. This in my mind makes the YM much more attractive as well as the fact that it's only 30 stocks it's based on as oppossed to the S&P.

 

Huge rip-off for retail customers !

Total cost (incl. exchange fees) is lower for YM (CBOT).

 

Reducing tick size for the NQ and ES would be great. Although I never heard any talk of that happening.