Traders Laboratory - View Single Post - $10 Dow, $5 Dow match
View Single Post
  #12 (permalink)  
Old 03-11-2007, 08:35 PM
dalby dalby is offline
dalby has no status.

Trader Specs
 
Join Date: Feb 2007
Posts: 155
Thanks: 0
Thanked 1 Time in 1 Post
Re: $10 Dow, $5 Dow match

i am pretty sure the big dow (25) *is* fungible with the mini dow (5).

this would offer the same opp that the original trader desired, in terms of commissions saving - they would be very nice

consider that if you buy 2 big dows (equivalent of 10 minis) you pay about $4 to be long 10 contracts vs. $20. that is a MAJOR commissions savings

the problem is that commission is only really a big issue when you are scalping. if you are going for 3-8 points or so, it's much more significant than if you are going for 15+

and since the big dow has such terrible spread, it's non scalpable

i am also pretty sure that the big dow is fungible with the mini through IB. not 100% sure though

Reply With Quote