Entry into an ES trades almost always cause a one tick loss

Quote from mindtrade:

What the OP is getting at is more often then not if you set a buy limit price and it gets hit the price will likely be one tick below your limit buy, putting you at an instant loss.
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Not exactly . . . If you put in a limit order for 990.25 (ES), then you will be filled at that price or better. If you get filled at 990, then the price traded through your price and you actually got in at a better price. If you get filled at 990.25 and the price is instantly at 990 afterward, then that's just price moving against you. You expected 990.25 and got 990.25 . . . no slippage.

Slippage occurs with forms of market orders via buy/sell stop, market if touched, market buy/sell, etc. If price traded last at 990.25 and you buy with a market order and you are filled at 990.50, then that's 1 tick slippage. Market orders buy at the offer and sell at the bid . . . what ever the spread is will be your slippage in the best case scenario.

You can sit on the bid with a limit order in the ES and not get filled easy enough. Not quite as frustrating in the YM or NQ.

Keep trading.

JScott
 
Quote from hippietrader:

ES almost always cause a one tick loss upon entry unless it is a very moving market going in your direction.

Is there a term for this? slippage or spread?

As a retail players, a tick is often lost simply to get in a trade, another tick tick may be lost to get out.

Is this better with YM, NQ & TS other than their ticks is only $5 each. An ES tick is 12.5
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That may not be a simple technical issue. If the slippage was intentional and there is window of opportunity for the broker to exploit one tick advantage, this may be a legal issue. I suggest you
present your case to proper authority.
 
At .25 the ES tick increment is too wide. It was originally .10 (pit contract) and was made .25 to give the pit people arbitrage opportunity (free money). This was done to placate the pit when the electronic contract (ES) came out.

It is time to reduce the tick increment on ES to .10 to match the pit contract.
 
Quote from indexer:

At .25 the ES tick increment is too wide. It was originally .10 (pit contract) and was made .25 to give the pit people arbitrage opportunity (free money). This was done to placate the pit when the electronic contract (ES) came out.

It is time to reduce the tick increment on ES to .10 to match the pit contract.
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You are correct, of course. And if I had my way it would be reduced to 0.01. The CME seems to have some kind of monopoly and no other exchange can compete with these contracts.
 
I agree its hard to time exact price to get in on ES, but usually if you are right, the market will move at least 3 points n your favor. If you want to make money quickly, go for 1 point, and get out.

Something I added to my trading lately is time zones. These time zones will help you determine when to trade with the trend and when to trade against it.

I have found you can do either one of 2 things.

1) You can anticipate where price will go before it will reverse and will have a limit order ready for it.

2) You get a signal that price is either going to continue to trend or reverse and get in on a market order. The reason to do this, is that if you try to place a limit order while price is already moving in the direction of your trade, you have to keep lowering it ie chasing price which can cause a problem since you are no longer getting an optima fill.

I don't think the cost per tick is relevant since 4 ticks equal $ 50 in es, if you trade a different market where the tick is less than es, it just means you will need more ticks to equal the same $ amount.
 
oracle wizard... very good advise BUT my personal experience is that more often than not unless the price TRADES THROUGH my limit i do not get filled....
 
Quote from larrybf:

my personal experience is that more often than not unless the price TRADES THROUGH my limit i do not get filled....
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I guess I don't understand the point of this thread.

Yes, if the bid queue has 1000 contracts already and you place a limit order then you aren't getting filled until 1000 contracts trade at that price first (assuming no one else earlier in the queue pulls their orders)

So unless you put your order in the queue way way ahead of time you are going to be near the very end of the queue and won't get filled until the price trades through it anyway.

Nothing sinister here, its FIFO queue and if you check the T&S after your limit order gets hit I'm sure you will see that you are filled exactly when you should be (e.g. ~1000 contracts will be filled before you in the above example)

Want to be early in the queue? Place your limit orders before the market opens and leave them in all day.
 
nah. trading through has nothing to do with it, thats just your poor timing.

say 1000 on the bid and you enter to buy 1 contract, you're 1001


1000 fills on the bid, but others have bid in the meantime, so now you are NEXT but there are still plenty of shares on the bid.

You fill, and the price has NOT traded through.


I suspect none of you actually trade, you just post.

being early in the queue unless you are an arb just makes you a sitting duck. but you knew that already. quack.

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