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The Small Exchange launched a new product in December for the 10 year treasury yield.
Robert
Desc:
Small 10YR US Treasury Yield simplifies variables in interest rates into a single, succinct yield so that you can skip the calculations that translate yield to price.
I have been trading the small exchange for several months now and have found it to my liking. The overarching reason is because it allows me to hold a futures contract for a extended period of time (days) while reducing the risk of blowing up my account.
To put into context:
the SM75 which closely follows the Russel 2000 closed today 62.88. If the price were to go to zero the most you could lose is $6288.00. If the Russel 2K micro were to go to zero the most you can loss would be $98,200. (based on todays close). While the Micros are great products you can still end up blowing up your account in very short amount of time.
I would recommend any beginner trader to consider trading these products. Its a good way to learn trading while reducing overall risk and allowing you to have skin in the game for longer than 5 minutes at a time
Below is my results for 2020. Nearly every one of these trades I held for multiple days.
Robert
disclosure: I signed up to the Small Exchange when they first opened. As a result I receive reduced commissions for life.
It is my pleasure to welcome Michael Gough @ The Small Exchange for our 408th webinar event, sponsored by DTN, on Thursday, January 14th @ 4:30 PM Eastern US.
I want to thank @DTN IQFeed for making this webinar possible by sponsoring it.
The title for the event is "Introducing The Small Exchange: Markets That Make Sense", and bullet points include:
The Small Exchange is making futures markets more accessible to more people with products that are small, standard, and simple. Stocks are expensive. Traditional futures are complicated. The Smalls are a new kind of product that pair the efficiency of futures with the clarity of stocks. Michael Gough will be guiding you through the Small Exchange offering and introducing its newest product - Small Treasury Yield - the first product to allow interest rate trading in yield instead of price.
- Access the exclusive efficiency of futures with products designed for the everyday investor.
- The Small Exchange offers small, standard and simple futures for the everyday investor.
- Pair the capital efficiency of futures with the clarity of stocks.
- The Small Exchange offers commodity, foreign exchange and equity index futures 10% the size of other futures.
- Futures contracts can be more capital-efficient than stocks, but their complex design and large size have kept investors from adopting them for speculative and risk management needs. The Smalls offer the best of both worlds with products that are small, standard, and simple.
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals, U308 and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,059 since Dec 2013
Thanks Given: 4,410
Thanks Received: 10,226
Like the idea but I'm skeptical. Futures trading can be divided into two categories hedging and speculation. I doubt anybody is hedging with these contracts so that leaves us speculation. I would divide speculative trading into three broad categories, 1/ Fundamental, 2/ Technical and 3/ Market Making/Arbitrage/HFT. While obviously you can trade the Small Stock 75 fundamentally how do you trade a 'Precious Metals Contract' that is a mixture of three differing precious metals. How does an Market Maker/Arbitrager trade a contract that small and that is also based upon three other contracts? Who does that leave? Technical traders trading against other Technical Traders?