Why have the price of NYMEX seat leases dropped so much?

Discussion in 'Commodity Futures' started by JangoFolly, Apr 4, 2007.

  1. I would take a que from Europe, which has been entirely electronic for quite some time. I'm actually surprised the pit markets lasted as long as they have in the US. CBOT is nearly extinct except for eurodollar options from what I hear. NYMEX had no other choice but to team up with Globex or get eaten alive by eCBOT and ICE. The pit volume is now a mere fraction of the Globex market. The NYBOT pits will probably be the last to go with the slow ICE rollout.

    Unless you want to stick to your local grain/lumber pits after college, I would keep your prospects open to screen trading.
     
    #11     May 6, 2007
  2. I don't think anyone knows the answer to exactly WHEN it will happen (we are just guessing), but it is inevitable that the old way is on it's way out. This fellow is right, Europe has proven FULLY electronic works. Now that the US exchanges are public, they will streamline to run as a well oiled machine...and will cut out the inefficiencies ie. people, and replace them with robots & computers.

    Take the NYSE for example. The Specialists have been complaining because they can't make money anymore on the floor (after hybrid electronic system). They are threatening to leave. In the end they will lose.

    You can't fight change. I recommend you focus and plan on the future instead of looking backwards.
     
    #12     May 11, 2007
  3. You've made a number of posts lately with an anti-computer/anti-technology bias. Why do you have such a hard-on for the pit?

     
    #13     May 12, 2007
  4. dear youngtrader ...

    in my opinion you have nothing to gain and everything to lose
    by trading futures at such a young age

    if you think you have something to bring to the table
    may I suggest you send a resume to a top firm like MBFCC
    and apply for their summer internship in NYC

    www.mbfcc.com/mbf_internship_program.html

    and at the same time do not let your grades or finances
    suffer from trading futures at such a young age

    ( ignore this post if you are a millionaire already or have a few million in the bank waiting for you from a trust fund )

    good luck to you
     
    #14     May 13, 2007
  5. if there's real liquidity there in the first place, shouldn't it persist, screen or pit?

    pit restricts the advantage, screen just opens it up to the best taker

    if the concern is fake liquidity on the screen - it might not be fake, just faster and better integrated accross markets, right?
     
    #15     May 13, 2007
  6. Guys, no I am not a millionaire nor do I have a lot of money waiting for me later in life. Like I said I am a farm kid from Iowa who knows the agricultural markets better than most and has had a fair share of experience trading them. I am a position trader who usually executes spreads primarily in the grains and energy markets with anywhere from a week to a couple of month view on the market. I have very little day trading experiance and usually it has been bad experiance.

    I can understand when you guys say that you are only hurting yourself by trading in futures from such an early age and that you have nothing to gain and everything to lose. Honestly though I can handle it. I have taken some huge losses and have had some huge winners. Sure when you take a loss you don't sleep as well that night and your stomach pains you but its the nature of the business. I live and work on a farm and I know what it takes to become successful by working hard and sticking to good values and never ever giving up.
     
    #16     May 13, 2007
  7. I in fact think you should start as early as possible. If you lose when you are young, you still have time to make the money back, and stay in the game. If you attempt it when you are older, and you're married and have a family to support, one big hit and you'll likely be taken out of the game for good.

    Once you get to a certain age, if you can't hack it, it will be next to impossible to do it for a living.

    From what I read, you sound like you want to do it for a living and NOW is the time to start. What's the worst thing that happens, you lose some money. Who cares...when I was your age money was the last thing on my mind. All I cared about was broads and having fun.
     
    #17     May 13, 2007
  8. bunkinc

    bunkinc

    Indeed. Youth is the time for risks anyway.

    I gave my 12 yr old nephew a John Murphy TA book for a birthday! He wasn't impressed, unfortunately.

    Young fella, I admire your eagerness at such a young age and wish you all the success.
     
    #18     May 14, 2007