ES Spread

JS11374 · Jul 23, 2002

I'm about to start trading ES in real time for the first time. I have a question or two, since I've been practicing on IB's demo system and I noticed a few things that can't imagine reflects the actual market.

1. What's the typical spread? Is it 0.5-0.7 normal, or should it be closer to 0.25?
2. IB seems to report more bid/ask changes than actual trades? Would there normally be more than 4 trades per minute, or less?
3. Sometime there would be spike in the bid/ask like 784/806... Do spikes like these happen often? If so, can we safely disregard them?

God I sound like a newbie. But I guess I am in ES., so I figure I might as well ask for some advice, as there are lots of ES traders here. Thanks.

SethArb · Jul 23, 2002

during the day

except if a sell or buy program comes in

you might make or lose $250 - 500 in a flash

you might want to experiment with

stocks that trade like e mini

as they have less leverage ...

good luck

m_c_a98 · Jul 23, 2002

Originally posted by JS11374
Would there normally be more than 4 trades per minute, or less?
[/B]

More like 4 trades per half second!
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The IB demo quotes are in no way similar to the actual trading quotes during the day.

JS11374 · Jul 23, 2002

It's good to know IB's demo system isn't anything like it. I was hoping for that. What about fill? If I hit the bid or ask, would I be 90% like to get a fill? (1 contract)

m_c_a98 · Jul 23, 2002

yes you will easily get filled instantly at the bid for sell under most normal conditions.

I don't mean to pry, but I hope you realize what you are getting yourself into here. If you are going to discretionarily daytrade ES, only the strong survive in this particular market.

I wish you the best.(but you have been warned)

JS11374 · Jul 23, 2002

Thanks for the fair warning. I'm gonna test-trade the real data a little more. Thanks for the replies.

PuffyGums · Jul 23, 2002

ES has about 500 to a thousand trades per minute, not 4. The most awesome market in the world.

profitseer · Jul 23, 2002

All day long the spread is just one tick. At night it often goes to .50 . That demo screen is not a very accurate portrayal of the market in real time. It's a good idea to run two quote services side by side for comparison purposes. If you ever want to verify your quotes, you can sign up for equotes at the merc for $10.00. And they are very easy to cancel. I'm not saying equotes are fast, but I wouldn't want to trade on anything that was slower. (for that matter, live quotes at lycos.com has a free realtime trial offer. So far, they are the best quotes I've found. use symbol es02u

stock777 · Jul 24, 2002

You might want to try trading the SPY at 100 shares to get the feel of the market. ES is = 500 SPY . Same liquidity and follows the ES very closely (and vice versa)

vulture · Jul 24, 2002

Originally posted by profitseer
All day long the spread is just one tick. At night it often goes to .50 . That demo screen is not a very accurate portrayal of the market in real time. It's a good idea to run two quote services side by side for comparison purposes. If you ever want to verify your quotes, you can sign up for equotes at the merc for $10.00. And they are very easy to cancel. I'm not saying equotes are fast, but I wouldn't want to trade on anything that was slower. (for that matter, live quotes at lycos.com has a free realtime trial offer. So far, they are the best quotes I've found. use symbol es02u

That is true under normal trading conditions, but lately in these choppy and very volatile markets these spreads are widening..I have seen 2-3 tick wide spreads frequently for the past several days...