Change the tick increment in ES from 0.25 to 0.1

Would you like to see the tick increment in the ES changed from 0.25 to 0.1?

  • Yes

    Votes: 115 52.8%

  • No

    Votes: 61 28.0%

  • I don't care but wanted to click a voting button

    Votes: 42 19.3%
  • Total voters
    218
Quote from version77:

Yes, ES would be more likely to jump around like a nut case like
YM acts like instead of a more steady like movement. Everyone
would be fighting over $5 ticks...
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I don't trade YM, but I always thought that it was jumpier than ES largely because it has significantly lower volume. Are you saying that larger tick sizes would result in "steadier" movement? If so, then why stop at a "mere" 0.25 points?

Personally, I would prefer a tick size proportionate to the large contract. I see no ostensibly fair reason why it should not be so. I would also suggest that the existing discrepancy is not to my benefit.
 
guy, I quote from your page:

"The reason, I believe, that day traders favor the ES is because of the smaller contract value (5 times smaller) than the SP. This allows small traders the ability to scale in and out of trades and implement trading strategies that would not otherwise be available to them if they were trading the SP contract."

Well, the answer why "daytraders favor ES" is simply because it's an ELECTRONIC direct-access level-playing-field market (ignoring exorbitant fees CME commands for ES etc), whereas SP is PIT open outcry.

I can't imagine anyone daytrading the SP off-the-floor, unless he does less than 2-3 trades per day and sends his resting orders in advance to his executing broker on SP floor. I have some systems that could be traded this way.

So, effectively, the daytraders have NO CHOICE between ES and SP. And from what I hear, a lot of SP floor traders nowadays just arb the SP/ES most of them time (thanks to the wider spread).
 
Quote from Thunderdog:

I don't trade YM, but I always thought that it was jumpier than ES largely because it has significantly lower volume. Are you saying that larger tick sizes would result in "steadier" movement? If so, then why stop at a "mere" 0.25 points?
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You are right! We should lobby for ES to have a 1-pt spread!... :D

I just think ES would be different with a 0.10 spread. Maybe not...

I don't want to find out the hard way, that's for sure!... :)

It sure would make the DOM a little stranger to deal with...?
 
Quote from version77:

You are right! We should lobby for ES to have a 1-pt spread!... :D

I just think ES would be different with a 0.10 spread. Maybe not...

I don't want to find out the hard way, that's for sure!... :)

It sure would make the DOM a little stranger to deal with...?
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what is DOM?
 
Quote from gerry875:

what is DOM?
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Depth Of Market.

Most trading platforms offer a DOM or DOME (DOM Execution) screen so that you can see the volume bid/ask at the five closest prices to the inside bid/ask.

DOM just shows the volume while DOME allows you to execute trades from the DOM screen. (I might be slightly wrong about this but if I am someone is bound to jump in here and correct me.)
 
Quote from mtzianos:

Well, the answer why "daytraders favor ES" is simply because it's an ELECTRONIC direct-access level-playing-field market (ignoring exorbitant fees CME commands for ES etc), whereas SP is PIT open outcry.
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This is true.

I should have said that the reason that smaller traders favor the ES is because...

I'll correct this - thanks.
 
Quote from Thunderdog:

I don't trade YM, but I always thought that it was jumpier than ES largely because it has significantly lower volume. Are you saying that larger tick sizes would result in "steadier" movement? If so, then why stop at a "mere" 0.25 points?

Personally, I would prefer a tick size proportionate to the large contract. I see no ostensibly fair reason why it should not be so. I would also suggest that the existing discrepancy is not to my benefit.
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Thunderdog,

You rightly question this. Don't get conviced by wisecracks. As I wrote already, I used to track both NQ and ND over a long period, both differing in ticksize. I ALWAYS FOUND THE ND THE MOST LUCRATIVE TO TRADE (excluding commission considerations). Why? Smaller tickvalue of the two. Arbing syphons profits from NQ to ND. That's obvious. I at least have an explanation to offer.
 
Quote from ElectricSavant:

Would that be the same as saying, "The Blind leading the Blind" ?

But wouldn't that blow you away if there really was one real profitable, consistent trader out there freely sharing without insecurities? Say he was able to trade several markets and was able to teach students how to change with the markets and trade live with them everyday and they all made money year after year....and yes he did not charge money for the education (regardless, he probably would not be recognized and have to scream after clients constantly, while he made a living trading) No I am not talking about Woodie either.

Michael B.
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highly improbable.
 
Quote from Remiraz:

Its shocking to see traders supporting the spread. Its like gamblers supporting the house edge. :eek:
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Hi Remiraz,

Must be true that many are losers anyhow.
 
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