Price has nothing to do with range. The percentages eWheat ranges today are the same as it did when it was trading at 4X this level, $20 a bushel.
The e contract and pit contract are the same and fungible. Very few differences as any out of line gets arbed immediately. If you want to put down size and big spreads, you're still better off going through the pit and will get much better fills.
Whatever......however, I remember being in the wheat pit trading at those levels....what were you doing?
Trading wheat in the comfort of my office listening to Tim Weisberg away from the angst, noise and stress of the pits. Don't know how long you were in the pits but I hope you are out by now. The pits are great when you are younger but as you get older a nice comfortable chair definately has its advantages. I've been trading wheat for almost 15 years now and much perfer the electronic markets.
Agreed, but the average trader or small ag producer has commission advantages using electronics. I have local brokers charging ag producers as much as $70 a RT for trade execution. OUCH! That is robbery.
I did my 20 years in the pits and only go back when I'm up there on business. Still like the pits, even though it's a memory. Still, with the size I trade, I need to use the pits as the globex just can't handle 3 million bushel orders without moving the market a nickel. Also, there are still 5-6 guys in the pit that trade just spreads and will take fill you up to 4 million a side, which is very convenient(they will charge you a half cent for the privilege). Notice how the most pit activity is in the options as they can't find the best way to trade them electronically.
Per contract or a ticket charge? Ticket charge is ok in my book if your adding value. But the per contract comm should be miniscule
A buddy of mine trades upstairs in the nymex building. Took me down to the floor few weeks ago and the only pit thats still alive is energy options. In fact the biz has exploded he says..all new blood. Same reason, Cant trade size or complex effectively on the screen.