Pit vs. Electronic for Spread Trades

Discussion in 'Commodity Futures' started by rt5909, Sep 7, 2008.

  1. rt5909


    I have been doing spread trades on both livestock and grains for a few years through a local broker. I am wanting to do this from my office though, but didn't know if the volume on the electronic mkts was enough to make this feasible...as I would not have access to the pits as I did with the local broker.

    Also, what platform would you guys recommend for this? I need access to the CBOT/CME mkts but also to KCBT and MGEX....thanks
  2. some electronic meats are very thin.
  3. rt5909


    what about the grains?? thats 80% of what I do anyway
  4. caroy


    good volume in the electronic with the grains. I go through infinity futures self directed accounts. I use the onyx platform. It's very simple and i'm happy with the service. You can do pit traded through them as well if you like but the commissions are lower for the electronic markets.
  5. Im with PFG, I like em but you cant place spreads from your platform, you have toi leg in which I usually don't like to do. Elec volume on the grains are good, everything is fungible so you shouldn't have a problem going elec. good luck to you
  6. I have placed a few of these trades before, but only on CBOT products. Finding a platform isn't hard (CQG, X-Trader are two), but finding a broker that supports KCBT or MGE is. I would also agree with a previous poster in saying you are better off trading any livestock products through the pits.

    On a similar note, because I'm curious, anybody know of a good broker that supports electronic KCBT or MGE?? Only one I can think of is Alaron, but the reviews for that broker aren't the best.....

  7. The spreads on Globex are a quart wide and hundreds up. Of course they're also FIFO which may or may not work against you.
  8. caroy


    INFINITY with their platforms supports both KCBOT wheat and MGX. I am very happy with the service, commissions and overall product of what I get. I'd highly recommend them. The platform supports access to these markets as well.

    If you do any options they are also great at quick b/a quotes and are very helpful and knowledgeable across a wide area.