ES points & Dollars?

lindq

lindq

I'm looking into S&P futures for the first time, and hoping for some clarification on an ES "point" and relation to dollars.

First, when you refer to an ES point, does that equate to a single point move in the underying S&P? For example from 985 to 986?

Second, how does that translate to dollars per contract, and how many contacts would be required to equal, say, 1000 SPY shares.

Third, are there any advantages to trading an ES contract versus a full size S&P contract, provided that one can handle the account requirements?

Thanks.
 
As a 50 year old trader with 25 years in the markets, it's been a long time since I was called a newbie. But thanks for the compliment.
 
1 es contract is the equivalent of 500 shares of SPY
1 full point (called a handle) is 4 ticks and equals $50 per contract

a .25 move is the smallest increment (called a tick) and is equal to $12.50 per contract
 
the advantage to es over SP is that es can be traded electronically during regular mkt hours.

Many direct access brokers will not permit trading SP because it can't be offset electronically in the case of a margin call.
 
but if you talk to old timer floor guys they refer to a move in the big contract from say 985 to 986 as a 1000 (maybe they call it a hundred but the fact is they break the move down into much smaller increments) point move. When I first traded the big contracts (attempted as there were not minis and was $500 a point) I never knew which convention to use because people were in different camps because of the increased range.


Which I guess is what lindq was asking about. But I think the current convention is to call that 985-986 move as one point unless you are on the floor.
 
Quote from ROCK SOLID:

NEWB ALERT!

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ROCK SOLID, yesterday you had problems with Esignal, and myself and Tech Analysis took some time to help you out. Today, someone else is asking for help and all you can do is insult them. Showing your true colors.

PS. Sorry for taking this thread off topic but I thought others should be aware, should they decide to help him in the future. I won't respond anymore to Rock on this thread.
 
Quote from profitseer:

1 es contract is the equivalent of 500 shares of SPY
1 full point (called a handle) is 4 ticks and equals $50 per contract

a .25 move is the smallest increment (called a tick) and is equal to $12.50 per contract
More...

Thanks, just what I was looking for.

What is the typical spread in an ES contract? Is it one tick or $12.50?
 
Quote from lindq:



Thanks, just what I was looking for.

What is the typical spread in an ES contract? Is it one tick or $12.50?
More...

Typical spread is one tick during market hours. It very rarely goes any higher.
 
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