Chicago Board of trade

[fanmail]

MrB, wow, seems like it would be tough to follow that many markets. That's great though if its working for you. How long have you owned a seat there? I guess I shouldn't assume you own it. Just wondered what you traded because I have just recently (less than 2 years) started trading in KC.

[ QUOTE ]
one thing i always wondered but never bothered to research:

what's the advantage of being on the trading floor rather than in front of a computer screen?

[/ QUOTE ]

It's an advantage to a local to see the order flow and know who is buying/selling and how much. Ideally, and I just started getting the hang of this, you have a computer and you trade on the floor simultaneously.

[mrbaseball]

Unfortunatley I don't own a seat as they are real valuable these days with the stock offerings. I sold my seat when I left the floor for the screen. I have been a member of both CME and CBOT but am currently a member of neither.

I trade a lot of spreads which are maybe a bit easier to follow. Plus I only trade certain markets in certain situations. I only trade currencies (and in spread form) on news and numbers trying to catch a false move in extreme volatility. Energies are mainly spreads too. I trade stock indicies in both spread (spu vs dow, midcap vs russell etc.) and outright (mainly mini spu, dow and nasdaq) which is probably more than half of my activity.

And yeah the advantage of the floor is seeing order flow and the ability to lean on what you know is there and the capability of being faster than the public. The transfer to screen trade negates most of these advantages and a lot of floor traders have trouble making the transition to the screen. It's a different animal and the trade and psychology is very different.

KC huh? I have been meaning to look into the KC vs. Chicago wheat spread. The little I have seen it's a pretty volatile spread plus wheat has been kind of nuts over the past year. There was a major bloodletting last year when wheat spreads went into black swan area.

[fun160]

[ QUOTE ]
I trade a lot of spreads which are maybe a bit easier to follow...I trade stock indicies in both spread (spu vs dow, midcap vs russell etc.) and outright (mainly mini spu, dow and nasdaq) which is probably more than half of my activity.

[/ QUOTE ]

You running TT with AutoSpreader?

How wide is the cheap vs. expensive range on the Dow/S&P cash/futures basis these days? It was about ten points (taken out to three decimal places) when I traded that arb from the edge of the Dow pit with a clerk in the S&Ps.

Dang, I loved that arb, especially when we got the chance to sell Dow way expensive after the cash closed. It was as risk-free as an overnight trade ever gets.

[mrbaseball]

[ QUOTE ]
You running TT with AutoSpreader?


[/ QUOTE ]

Yes

[ QUOTE ]
How wide is the cheap vs. expensive range on the Dow/S&P cash/futures basis these days?

[/ QUOTE ]

I quit paying attention to cash a while ago as it seems tight enough and fast enough that watching it gives me no edge. I just trade future versus future and try to capture small fluctuations as the spreads breathe. The Dow/Spu is tight and heavily traded and best when things are happening. For example there were some good trades yesterday on the gyrations caused by the Fed statements. The other spreads I look at are a bit more speculative with greater chances of real breakouts.

[fanmail]

If you are big on spreads, kc-chi wheat is an interesting mover. I do a little of that especially because chi is more liquid.

[FreakSex]

If people are interested, I just landed a position as a quantitative trader at the Merc.. send questions my way, or perhaps I should start a thread? Just a thought.