I'm new to the futures. This forum is by far the best source of info on the Net I could find so far. I have many questions, but let me just start with one.
What are the disadvantages (if any) of e-minis as opposed to pit traded futures? The slippage is supposed to be none (is that right?), the liquidity is great, comissions are low $4.80 per contract at IB, and finer granularity would allow one to diversify with smaller capital. What's the catch ?
E-Minis Pros and Cons
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- Roundtable Fellow
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- Joined: Sun Apr 20, 2003 9:16 am
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- Roundtable Fellow
- Posts: 62
- Joined: Sun Apr 20, 2003 9:16 am
Mini Contract Pros and Cons
I recall reading somewhere that mini contracts at times have greater volatility than the corresponding big contracts. The implication was that big traders can jerk around the mini markets to the disadvantage of small traders. But I haven't been able to track down a concrete reference that backs up my recollection.
This thread discussed the spread size and commissions as disadvantages. Does anyone have personal experience or links to sources that discuss other pros and cons? Is there any liquidity problem with mini contracts?
This thread discussed the spread size and commissions as disadvantages. Does anyone have personal experience or links to sources that discuss other pros and cons? Is there any liquidity problem with mini contracts?