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Trading grains profitably depends alot on your time horizon. If your thinking of scalping profits from off the floor, dream on. There's going to be a time delay from the human handling as was mentioned by the previous posters. If your able to find a brokerage that routes directly to the pit...

For Ex. lets say currently spread is as follows: 10 bid at .10(Rest of the mkt) 2 bid at .20 (YOU) 15 offer at .40 (Rest of the mkt) Order to sell 50 at the market. Broker hits you, the .10 bid and prob. rests at .50 Meantime offe has dropped to .80 or even. Your out already...

Fine, jump in front of every trade and take immediate losses when the market moves back to the "market price". Should provide you with a real long, succesful career. Futures are a hedge, a form of insurance. No insurance co. is going to sell ins. for less than it's expected cost and no trader is...

I've heard the rumors about the Fed buying futures too. Really no way to prove it. If they do, they'd have to come through a broker or two. Or, think of this scenario. Keeping what you said in mind, Imagine the futures are tanking. Some of the traders believe and are waiting for the fed "to...

As far as e-mini's printing faster. How much faster, .2 seconds? Don't you know that all exchanges have market reporters in and above the pits reporting price changes nearly instantaneously? I still maintain the smart money is in the pits. Jef's post says it clearly. Tea, in one of your...

I disagree I wouldn't say this is collusion or artificially wide spreads at all. Trading in the pit is about competition and surviving to trade another day. If your good enough, you make enough money to take larger positions and become more of a force in the pit. As you take larger positions...

In my first post, I said I'm not afraid of .10 tick in the mini at all. Don't trade the mini's and don't ever plan on it. But reducing the tick by .15 isn't going to turn a losing trader into a millionaire overnight which seems to be the belief of many here. Only thing I said was spread would...

I agree minidow is not mature. But has 95% correlation to SP. Why haven't some traders stepped over to catch the inefficiencies? No vol. That contract will never attract traders, spreads too narrow, volume to low. Don't underestimate the importance of spread in scalping. It's critical. Take...

Statistically, high prob. of mini spreads reflecting SP spreads (both GLOBEX and PIT). Arb. conditions ensure it. Never said .10 spreads wouldn't exist at all. Read my prior posts. Said volume will remain on larger spreads (.20-.40) and those improving the spread are likely to get hit and...

First of all, thank you for the respectful disagreement. I'll be happy to respond to all posts that show the level of respect your post has shown. Here is a part of one of my previous posts with some other commentary. I agree with you that the pits days are numbered. As I'm sure you know, the...

Why do you doubt that? The pit is the most liquid market and still maintains these spreads. NO SMART TRADER WILL RUIN THE SPREAD. Those that do narrow the spread will be picked off and have short trading careers. For Ex. lets say currently mini spread is as follows: 200 bid at even 250...

I agree with you that the pits days are numbered. As I'm sure you know, the SP already trades on GLOBEX. SP continues to be the contract for price discovery. The sheer size of it makes larger positions easier to enter into. I think SP will always be the contract for size. Not a mini trader...

What does open int. have to do with price discovery? Everything. Open interest is a sign of the "Smart Money". It's a known fact that most small speculators (read e-mini traders) will buy late in the rally and sell late in the trend. In short, SP Open Int. is 7-8x the size of the ES open...

Take a look at open interest. As of Dec. 13, SP 655,939 ES 470,235 And that's not even taking into account the size of the contracts. If we do then SP 3,279,965 ES 470,235 Banks, hedge funds, major speculators still choose the pits. Price discovery occurs in the pits.

Additionally, you can't begin to compare the risk you take as an e-mini trader with the risk of a pit trader. E-mini's don't serve as price discovery. They emulate the SP. Pit dollar volume is so much larger than mini dollar volume. Mini traders don't scream and fight for their fills, they click...

First off, you called me on the pit traded ES. What your failing to recognize is that pit traders act as the market makers in futures trading. They aren't betting on direction as much as they are on volatility. The point of my posting wasn't to say the .10 tick in the emini is bad. My point...

Will the .10 tick lower trading costs? I don't think so. If you look at the pit traded ES, the bid/ask is rarely even .20 and more typically .30,.40 or .50. Why? Because what trader is his right mind is going to make a market with such small compensation for taking on risk? Many floor traders...