[Soultrader]

For those interested in leasing a seat at the CBOT please check this link here:

CBOT - Lease Ranges

The current rate is $83 a month plus an initial one time fee of $1500. You are looking at saving over $2 or so roundtrip per contract.

[Reaver]

Hey not as bad as I thought....the savings would add pretty quick. lol I sound like I'm shopping at Walmart or something. ha ha

Thanks for the link Soul.

[torero]

It would be a great experience, even if you're not planning to trade since it's a whole new ballgame. If I were living in Chicago, I'd seriously give it a try. I wonder now that CBOT is merging with CME, would they hike up the rates too?

[wsam29]

Originally Posted by torero »

It would be a great experience, even if you're not planning to trade since it's a whole new ballgame. If I were living in Chicago, I'd seriously give it a try. I wonder now that CBOT is merging with CME, would they hike up the rates too?

You can lease the seat and still trade from where you are.

If you wanted to visit the exchange you would need clearance even if you are a member.

THe only benefits of being a member are lower fees and margin requirements, other than that being a member does not have any special market knowledge advantage or information.

From what I read, pit trading is more visual and audio of reading other traders. In essence it really is a game of big stakes poker in the pits.

[walterw]

I did start trading on the pits here in Bs AS Argentina, we use to have a very dynamic market during the Menem goverment... its an experience that I do miss and I think I will never have that again... I did change to electronic markets in US futures and I did a very painfull process to learn how to feel the market without the pit stimulous... I did have pit noise with Ben, but it really doesnt get even near to the real thing... I think that if you like very small scalping, that is the place... cheers Walter.

[nicknextmove]

Question for guys whose have leased a seat.

Do you have a LLC or a Corp?

I have a full time job and trade part-time - so not sure which would be good for me.

From reading some threads on EliteTrader looks like LLC is not tax efficient.

[wsam29]

Which CBOT membership were you looking at? there are different classes.

I think you are implying the B4 IDEM class right?

If that is the case, according to Hubert's math, you need 7 round turns per day to break even from cost of application fee and fees to be worth while, any more contracts is money saved.

if you do not consider the $1500 one time application fee as part of business and only the fees, then its 3 round turns a day to break even for the cost of the monthly membership fee.

the B4 IDEM class was meant for individual ownership/control so you cannot use anyother entity to lease or purchase other than your personal name.