I do it for portfolio diversification. If the S&P takes a nosedive, bonds and the EuroFx will likely move substantially along with it. Sugar, on the other hand, will probably not do much. The former I can trade electronically, the latter only in the pit.
If you're still looking to trade Lean Hogs electronically, let me give you some insight. There really isn't a great market for hogs via the Globex platform, although it has improved since last year. Down in the pit, we do a lot of volume and I think the contracted IB floor broker is someone from MF Global. Also, the reason you don't see bid/ask spreads is because everything changes so quickly down here and the quote reporter generally only does last sales. Let me know if you need anymore help as I'm a lean hog local pit trader.
hi rx. i trade live,feeders and hogs and use pit and globex through IB. the pit guys do such a good job compared to globex.they get me fills when my globex orders don't even come close.and i'm only trading 5-10 contracts. i hope the cme doesn't push to end the pit trading. just wondering,when i send an order does it go to a clerk and then to the broker or does it go straight to the broker with a hand held computer? some of the orders get filled so quick i'm amazed especially feeders. does MF global do live cattle and feeders also? just wondering. thanks very much for any info appreciate it
If you're getting quick fills, it might be that they're just going straight to the floor broker or that they're just taking the other side of you trade if it is competitive to the market. Are you trading at market or doing limit orders? Since there are only one or two quote reporters to do the last sales, you might be entering buy orders at higher than market and sell orders at lower than market, in which the broker will just take the other side of. Not sure of the external arrangement between IB and MF though. I'm not sure of the arrangement between IB and MF Global, but if you're getting pretty quick fills on all of them I assume they would either be handled all by MF or maybe even the same floor broker. The hogs pit is still live here and I love it. From what we hear so far from CME, they have only announced that they're getting rid of the Pork Bellies pit trading, which has little volume. Hopefully, they don't decide to do the same to hogs too.
I use tradersaudio for S&P squawk and notice they now do a Meats broadcast. Could be useful for getting the bid/offer. http://www.tradersaudio.com/amember/signup.php CME Ag Meats Pit Broadcast ($150.00) Audio Live from the CME Live Cattle Fututres Pit. Have a listen to the most informative service currently available to traders that follow CME Agricultural products. Hear live action as it unfolds in the Live Cattle, Bellies, Hogs and Feeder Cattle. Hear the major players as they move the market. Feel the energy, the very pulse of the floor, delivered live
thats interesting.i didnt know they could take the other side of my trade,i thought they had to put it in to the market. i only use lmt orders and judging by the price after my order its seems allright but who knows from here.all i see is the last and the odd bid/ask.i guess thats why you guys have the advantage,you can see what the real price is. i can't complain,they do a good job for my small orders. are they people on the floor that do both pit and globex? i always thought there might be an opportunity there,cause i'm sure you've seen when globex hogs gets all out of whack.size probaly isnt big enough to be worth it though. thanks again
I think they can take the other side if the price is competitive to the market. I personally do trade both pit and globex, it is surely profitable although would be more so if there was more Globex volume.