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Trading Costs
Started:May 5th, 2011 (08:12 AM) by CASAMANIA Views / Replies:2,920 / 13
Last Reply:May 10th, 2011 (10:06 PM) Attachments:0

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Trading Costs

Old May 9th, 2011, 03:59 PM   #11 (permalink)
Trading Apprentice
beverly hills, ca
Futures Experience: Beginner
Platform: TransAct, E-Futures International, Ninja
Broker/Data: Cannon /Transact
Favorite Futures: es
Posts: 14 since Apr 2010
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donzi View Post
Hey Casa Mania,

You asked a really excellent question. I am an active trader and 100 round turns per day is not unusual for me. That adds up comission wise, like 500 bucks most places I trade. But I suspect there is more below the surface?

You and I as retail traders, we trade quarters. In other words, if we are trading the ES we are filled at 00, 25, 50, or 75. Our brokers are trading the bigs, which are filled in dimes, in other words their orders are filled at 00, 10, 20, 30, 40, 50, 60, 70, 80, 90.

So, this means that when you place your limit order at "say" something .50, your broker will not fill you unless he is able to "offlay" your position at his dime less or .40. Then he fills you and he has your dime in his pocket.

Anybody who has traded for a long time begins to realize this is not a fair game.

Essentially you as a retail trader are at the mercy of your broker. "If your broker fills you at one tick less or more how would you know?"

My only good advice is too "Trade on a SIM account for at least 3 months."

I hope more experienced traders will correct any errors in my answer to Casa Mania's question.

this is totally wrong. You're not trading against your broker, as is the common practice in forex. Your order is filled at the exchange at the best available bid/offer, based on your position in the queue. And GLOBEX orders can be tracked from the moment they are placed to the moment they are filled. There is transparency if you ever want to question a fill

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Old May 9th, 2011, 05:22 PM   #12 (permalink)
Membership Revoked
Oslo, Norway
Futures Experience: Advanced
Platform: CQG, Excel
Favorite Futures: CL
Lornz's Avatar
Posts: 1,198 since Apr 2010
Thanks: 500 given, 1,221 received

I think some of the posters on this thread might benefit from reading the CBOT or CME Handbook.... Either one will do. The Keywords are "clearing" and "price discovery".... CBOT Handbook of Futures and Options (9780071457514): Cbot: Books The CME Group Risk Management Handbook: Products and Applications (Wiley Finance) (9780470137710): CME Group, John W. Labuszewski, John E. Nyhoff, Richard Co, Paul E. Peterson, Leo Melamed: Books

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Old May 10th, 2011, 12:41 AM   #13 (permalink)
Elite Member
Miami Beach, FL, USA
Futures Experience: Intermediate
Platform: Sierra Charts
Favorite Futures: ES, YM, NQ, TF, 6A, 6B, 6C, 6E 6J
Posts: 12 since Dec 2010
Thanks: 235 given, 14 received

Casa Mania - Trading Costs

Casa Mania asked about the costs related to trading.

I interpeted that question as a question related to surviving the costs of trading.

I wanted to point out that as "retail" traders we trade against professional money.

So, I am not arguing anything, I am just simply trying to point out to Casa Mania that his trading costs are the least of his problems.

Sorry to say that if Casa Mania falls into the 95% of us who do not survive the first year, he will not point to his trading costs as "what blew up his account"

This is a friendly post, please feel free to disagree with me, as I am often "WRONG"

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Old May 10th, 2011, 10:06 PM   #14 (permalink)
Membership Permanently Revoked
Futures Experience: Intermediate
Posts: 1,176 since Nov 2009
Thanks: 221 given, 841 received

I didnt click unsubscribe on this post... but before I leave for good...

donzi View Post
I wanted to point out that as "retail" traders we trade against professional money.

actually, you can not compete with pro's... you compete against those that are pro-wannabe's that used to be newbies and feed the markets ... you feed the pro's as they transfer funds from your account into theirs, that is not competition... dont take me wrong, there will always be someone who knows more than you, or me, or anyone else... there is always a bigger shark lurking on the ocean...

donzi View Post
please feel free to disagree with me, as I am often "WRONG"

understatement of the century... specially when @Lornz is telling you where you can educate yourself a bit more so you dont spew out senseless rethoric ... I guess ignorance is bliss...

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