will 'this' happen or 'that' happen when 30 Year TBond tick size changes?

Discussion in 'Financial Futures' started by increasenow, Feb 20, 2008.

  1. will 'this' happen or 'that' happen when 30 Year TBond tick size changes?
    when it changes from $31 tick size now to $15 tick size on March 3rd...

    *a 'move' would double?...meaning say a 5 minute move went 5 ticks currently would then move 10 ticks?
    *all broker daytrade margins would be 'halfed'...

    please chime in and over you thoughts...thanks...INow...
     
  2. Lucrum

    Lucrum

    Somehow I doubt it.

    Performance bonds (margin) are generally based on the contracts value and volatility, not tick size.
     
  3. what do you think about the other points?...would the trading volume go down because traders are less 'attracted' to it with the smaller $15 tick?
     
  4. Lucrum

    Lucrum

    Example : starting price 116-00, market rallies to 117-00 approximately a 0.9% move. Whether it's 32/32nds or 64/64ths
    it's still a 0.9% move isn't it?
     
  5. do you forsee yourself choosing a market to trade anytime in the near future? Or do you plan on spending a number of years asking every single question about every single futures market out there?

     
  6. yea but the difference of $15 or $31 per tick/point is the issue of item...hmmm
     
  7. I netted plus 2.25 ES points in 18 minutes live/real trading today...this stuff is awesome...YES...I believe in always learning...
     
  8. thanks...so do you think the new ticks would go something like this...CURRENT: 116.70,116.71,116.72 etc....NEW 116.70,116.7050, 116.71, 116.7150 ????...thanks for letting me know...
     
  9. Liquidity will drop off
    Depth will drop off
    Volume will drop off
    Prices will run more because of this

    Look at the BOBL which reduced tick size in last June. It looks like it's been abandoned. . The schatz now kills it on a daily basis as far as volume goes.
     
  10. gnome

    gnome

    Of course. The smaller the tick, the less incentive there is to front-run.
     
    #10     Feb 21, 2008