Originally posted by Tea
Reducing the tick size on the Emini S&P to .10 from .25 would be like reducing the commission per contract from $12.50 to $5. If you trade 20 contracts a day that would be a cost savings of $150 a day or $39,000 a year. So, this is more than just âan interesting academic discussionâ.
From your statement, you must make a living arbitraging the Emini. When tick size goes to .10 to match the big contract there will still be opportunities to play market maker with a .10 spread. Nasdaq market makers make a living with a penny spread in many cases.
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