Traders' Roundtable

That move at the open in ELECTRONIC soybeans was insane, and worst of all, they are holding all trades as good trades. I had a clients fill all the way down to 987...1 minute into the open.

Electronic low was 980.50
Pit low was 994

Looks clearly like a fat finger error.....

I was screwed in the oil. Really POS fill in silver too while we're at it. Like 30 tic skid in nymex. I put in for a bust request for the BO trade but presume ill be eating it. Cant backtest such events. Wicked day for me. Gee thanks MF Global for taking us out of the pits.

RedRock, how many X will your account need to grow before you can afford to buy 10 turrets and hire 20 traders (2 shifts) to man them? Presumably this would prevent or reduce lousy fills in times of craziness.

Hmm, lessee, a turret costs $250K and lasts 3 years so, 80K per year. A trader costs $100K per year. 20 traders + 10 turrets = 2.8 million per year. Assume you're only willing to spend 10 percent of your revenue on this. That means annual revenue = 28 million. Assume your average return is 15% per year before fees, so at 2-and-20 your average revenue is 4.6% of AUM. 4.6% of what, equals 28 million? Answer, AUM = 610 million.

So if your AUM is 1 million now, you only need to grow by a factor of 610X before you can buy 10 turrets and 20 traders and have it cost you 10% of annual revenue. Sweet.

sluggo wrote:. Sweet.

Yeah. Needed to vent a bit apparently.


Dual traded markets are a curse at the moment. The big liquidity (commercials / rational minds) Stand in the pits and watch the madness as the little people eat themselves alive. I believe anything less than one marketplace for an individual contract is by design "unfair". Such is life these days. Marvelous .

Had a similar move on the close in mini gold on Wednesday. Luckily, it didn't touch off any of our stops for profitable exits, but scary nonetheless. YG is great with a low account size, but I think I'm going to stick with GC from now on.

I realize yg is thinly traded relative to gc, but did anyone see that as well?

We to got screwed by the exchange on e-bean oil. Been long for a few days with a stop at 4105. Low in E bean oil was 4104, while the low in floor bean oil was 42.08??
Saw a nice profit turning into a loss.
How can they get away with this? Why not bust all trades in e bo below the low in floor bo? Back to floor again. How do they ever think they are going to get decent liquidity in those emarkets when they do not correct things like this.
dodgy f

I vote for a site www.beenfuckedinemarktes.com to organize a lawsuit

Chelonia, E bean oil is thinly traded, if you could see the book of bid/ask and there just a few contracts on the bid side, its extremely easy to lower the price of the commodity by simply hitting those bids... make sure there's enough volume in stuff you trade

Then the exchange shouldn't offer e-bean oil or any other commodity to the public when the volume doesn't allow fair trade especially when it trades side by side with the floor.
I thought the US was the country where the public is highly protected from this sort if mis management by reckless companies like the ecbo.f .t
Anyway, i know. I thought a 4 lot would be possible, but i guess it isn't.
cheers