E-mini questions

T

trader3

Hi,
I have never traded futures, but trade stocks and ETFs every day. Can you tell me what trading the SP 500 e-minis or NASDAQ 100 e-minis is like. How similar is it to trading the SPYs or the QQQs? What is the minimum fluctuation (tick size) in dollars in each? How easy is it to get in or out of positions? Is there much, if any, slippage? Can you buy on the bid and sell at the ask? Can you use stops?
Thanks
 
Originally posted by trader3
Hi,
I have never traded futures, but trade stocks and ETFs every day. Can you tell me what trading the SP 500 e-minis or NASDAQ 100 e-minis is like. How similar is it to trading the SPYs or the QQQs? What is the minimum fluctuation (tick size) in dollars in each? How easy is it to get in or out of positions? Is there much, if any, slippage? Can you buy on the bid and sell at the ask? Can you use stops?
Thanks
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The minimum price movement of the mini s&p is $12.50 which represents 1/4 point. The mini Nasdaq is $10 which represents 1/2 point. So mini s&p's are $50 per point and mini Nasdaq's are $20 per point. Both markets are extremly liquid and easy to get in and out of. On a market order you will usually see 1/4 point slippage in the mini s&p and 1/2 in the mini Nasdaq. Stop orders are accepted for both markets. For more information, visit the cme's website www.cme.com .
 
It's just like day trading the QQQ, except you control more shares for less money and you can profit on just a tick movement with the leverage. Likewise, you can lose money really fast with some bad trades. Yes, you can use stops and yes it's very liquid during normal hours.

If you have a working day trading system on stocks, you should feel at home with the e-minis. They do behave a little differently, of course and only your own experience of chart watching will determine how you need to tweak your system to work best.
 
You can buy the bid and sell the ask, but you have to get in line with everybody else. Enter early and often.

Daytrade margin for es is $1800, and that controls the equivalent of 500 shares of SPY. So 20 contracts is the same as trying to scalp with a 10k block of shares.

es trades something like a thousand lots per minute. ATR is usually about 1 full point per minute.

It is very rare to not hit the bid or lift the offer on a mkt order or stop. There is no slippage other than the .25 tick you pay to get in or out at the mkt.

Commisions are $5 per round turn (or less), and if you have not elected mtm, capital gains are treated as 60% long and 40% short, and that really is what gives the futures a slight edge.
 
Not exactly leaving for Tahiti this minute.....but it does really work!
And it is simpler than any method I have tried. It is a simple thing. Put up a 3 minute chart. Put in a 5 and 15 SMA. Whenever the lines cross, put money in short or long depending on the direction. Get out when it touches a Bollinger Band or fails under the 15. Use Stochastics to judge if the market is moving.
The biggest thing is to cut losses quickly if the signal fails. And let them run a little if they have momentum from the stochastics.
Cathy
 
I have been using Don Miller's method for 6 months because before I looked into Eminis.....I traded QQQ and SPY. There is no difference in trading them, the same formula applies......only the Eminis are less liquid so you need to watch the volume.
 
Originally posted by bobcathy1
only the Eminis are less liquid so you need to watch the volume.
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I've never had liquidity problmes in the es/nq during RTH, esp shorting them.
 
Originally posted by bobcathy1
I have been using Don Miller's method for 6 months because before I looked into Eminis.....I traded QQQ and SPY. There is no difference in trading them, the same formula applies......only the Eminis are less liquid so you need to watch the volume.
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You must be doing hundreds of contracts to have liquidity problems?
 
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