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I meant liquidity at the best bid/ask price around the 0.5 new minimum , didn't mean volume will dry or something . Its all about minimum bid-ask spread divided by ATR , the lower it is the less the liquidity at the best bid/ask . Look for example at 3 months Eurodollar markets , the minimum tick there is a big portion of the daily range , its all about gaining the edge given away around the mid point .
I don't see that this makes any difference in how it is traded or whether one chooses to trade the 6E or E7. A stop of say 0.2 cents will still have the same monetary value, it will just be a a 40 tick move instead of a twenty tick move. And a 0.5 cent target will be 100 ticks instead of fifty. And the exchange fee is likely to stay the same.
I think the big difference will be on the DOM where assuming end of day volume traded stays the same, the volume traded at each tick will theoretically half. Also the DOM could now move around twice as fast as it did before as price will change at the same pace but the DOM will have to cover twice as many ticks or lines in the same amount of time.
And the order book shows ten levels which used to be 0.1 cents above and below the market but will now only be 0.05 cents. And lastly there will be much more scrolling up and down the DOM required for adjusting stops and targets as they will now be twice as many ticks away from current price.
I will be interested to see what the DOM looks like on Monday.
Anybody else just going to watch and maybe sim trade only until you get used to it? I have no idea it it is going to behave the same way it did prior to the switch so no live trading for me.
I have already made the change in Ninja trader; eagerly awaiting 5pm so I can see how it looks on the DOM
