References:
https://t.me/spreadtradarbot Telegram Spread and Scalp Chat Paid Group.
www.MasterClassTrader.com/specials - Current discounts for coursework on Order Flow and Spreading.
-
The new ‘micro’ crude oil contract was listed this week on the CME. So far so good it seems.
About Micros
The micro is not a different style of futures contract from other futures. It simply refers to the contract size. They are smaller. The upside is smaller, downside is smaller, and comms are smaller.
Details:
- It is 1/10th of the regular size contract.
- It’s a 100 barrel contract (v 1000 barrels).
- For every dollar move in crude oil, the contract moves $100 ($1000 for the biggie).
- The tick size is 1 cent. That’s worth $1 ($10 for the big contract).
- The initial margin is $530.
Tips for traders:
OK, here are some ideas to get started or think about:
- Watch the full contract – both charts and DOM. Micro for execution only. The reason being is the big contract will is trading more often (for now). That means levels and other technical readings will be more reliable from the big contract.
- Work limit orders. There’s no need to pay up on the spread, but if you do it doesn’t matter given $1 per tick. While the market develops however, don’t feel the need to rush your execution.
- Watch deferred contracts as they develop (for spreading).
- Make sure your broker has reduced commissions for micros and SPAN margins.
Learn More About Scalping and Spreading?
Check my courses at MasterClassTrader.com. This market can be used in both the DOM Bootcamp and advanced spread course.
Check out the special page for a current bundled deal.
Also check out my new Telegram chat group subscription for spreader and scalps. The link is below. It’s a deliberately small group for active traders, all there talk about trades and help each other.
Coming up, well next month we have micros in the treasuries, which I think will be fantastic. We’ll talk more about it when they launch.
Until then, good trading.
GB
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.