Futures or Stocks?! The truth

[whitster]

get a clue.

i wasn't referring specifically to GLOBEX. i was referring to index futures, in general. and my point stands. i proved that there are market makers in index futures.

i wasn't speaking specifically of CME products. i trade dow futures for a living. i almost never trade ES, for a # of reasons i have explained in other threads.

my other point, again supported, is that in an individual stock a market maker can have a lot more influence on price (generally speaking) than in an index future, for reasons having to do with arb'able underlying etc. keeping the price "in line"

market makers are not the enemy.

the fact remains. there ARE market makers in index futures, which was my claim. the fact that there are market makers in *a* index future (the YM) proves that. i didn't say ALL index futures have market makers, nor do i care.

nobody said (certainly i didn't) that ALL index futures have market makers. i said they exist in index futures, just like in stocks, and i provided specific cites.



again, i will wait for volente

 

[bsparkyman]

That is the whole intent of providing low exchange fees to seat holders, to increase liquidity. The majority of retail players are not seat holders. Hence the seat holders are intended to provide liquidity, the incentive to scalp (provide liquidity ie. make a market) afforded by the lower fees.

 

[bsparkyman]

Just to clarify, were you telling me to get a clue or the previous poster?

 

[volente_00]

Quote from volente_00:

There are no market makers in globex !

LOL

You give me a link to cbot ?

Is globex the cbot ?

Does ym trade on globex ?


Did I say there are not market makers in cbot ?

And you might want to check you outdated non CBOT link. It is referring to the dow mini being brand new and needing liquidity.


"EMMs help to provide liquidity for new contracts."


Is the ym a new contract ?

I have only heard of EMM's in t notes and options in the cbot.


Please show me a link from the CBOT site that says there are currently market makers in YM.






A SPECIALIST AND A MARKET MAKER ARE THE SAME EXACT THING !

 

[volente_00]

Quote from bsparkyman:

You quoted cbot rules, globex is cme. Both of you need to know what you are talking about. There are market makers designated or not on every exchange, they are locals on the floor (and now off) and they provide liquidity. They play it neutral when providing liquidity but they always take a side. Have you ever seen a big bid/offer begging to take it to the number just to be lifted and sending the market on a free fall or rally? That is your market maker/local at work. They have the juice to run the stops and take a positiion to fade the move they just started, always knowing that the retail player will fall into their trap. They don't manage the inventory like the specialist or set the price but they can and do affect the actions of the participants. They are the house, odds are in their favor, be on their side. It is that easy.

If there were truly market makers in index futures you would not get the violent moves intraday. There is no floor in ES or YM. Are you trying to say that the locals in the spoo pit influence the direction of ES ?

 

[Tcbjx9]

what is an uptick rule?

 

[Drew07]

Quote from Tcbjx9:

what is an uptick rule?

You can only short stocks on an uptick. For example, if you wanted to short stock xyz at 30 you can only sell shares after it ticks up from 29.99 and not when it ticks down from 30.01. This is a rule that is in place so that short sellers dont cause/contribute to an overwhelming decline in the market....or at least thats the way it was explained to me. I think I worded that right...correct me if Im wrong. Anyway...when trading futures there no uptick rule so even if a price is plummeting you can still sell shares.

 

[lauriston]

futures great if you obey your stops with great discipline. lower capital requirements. Stocks great especially if you are using margin and options to hedge or leverage some more. Stick to small contract sizes with futures and you are mostly OK http://lauristonletter.blogspot.com/

 

[Spectra]

Yes thats true. It's very easy to blow out an account. You can trade a YM futures contract for as low as $300 margin at some brokers. You can continue to day trade when your account dips under $25,000

obey your stops with great discipline.

 

[Tcbjx9]

Drew07 ok I didnt know that was a big deal. I've been trading futures and just hit the short button. It never gave an error or said they were not available. Stocks not as short friendly