Traders Laboratory - View Single Post - Trading with Market Statistics VI. Scaling In and Risk Tolerance
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Old 11-10-2007, 12:11 AM
mmaker mmaker is offline
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Re: Trading with Market Statistics VI. Scaling In and Risk Tolerance

For the cme (e.g. emini ES)

One can lease a seat if you are doing 25 round turns a day and save a considerable amount.

25 round turns per day = $24.5 at $0.98 per round trip (incl. clear fee $0.78 and globex fee $0.20)
lease cost per day = $58.4 (not sure about this number i think it is cheaper but site is down right now) ($58.4 times 252 days = $14,716)
one time application fee $1750
this option as is works out to $14,716 for lease plus $6174 in comm plus $1750 application fee
=$22,640

compared to retail cost at ib $4.8 times 25 round trips a day times 252 days
= $30,240

If you do more round trips the difference is even bigger.

If you don't do 25 per day or 1500 per quarter you pay retail.

You must incorporate to lease a seat or trade under a corporation.

http://www.cme.com/clearing/clr/fees/rule106r.html

You don't hear eTrade flogging this kind of commercial on TV.

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