hitting the bid

Javier · Jul 21, 2015

lets assume i would wanna play hitting bid, or offer to lift resting orders.. (not interested but.. for learning). If i see a 200 resting order in the offer, sould I market buy order 200 contract??
I think thats a huge number of order with extreme risk, but maybe any experts know how is this.

tx.

CliffordHarris · Jul 21, 2015

Javier said:
lets assume i would wanna play hitting bid, or offer to lift resting orders.. (not interested but.. for learning). If i see a 200 resting order in the offer, sould I market buy order 200 contract??
I think thats a huge number of order with extreme risk, but maybe any experts know how is this.

tx.

It is impossible to know the risk without knowing what commodity or contract your are referring. Since you say "contract" I assume you mean futures so let's assume this is the ES (e-mini S&P) one of the most popular.

If the index is at 2100 the notional value of 200 contracts would be 2100 * $50 (the point value) or $105,000 per contract. Since 200, then 200 * $105,00 = $21,000,000. So if you were to buy 200 ES @ 2100 you would be buying $21m. If you want to carry the position overnight the margin is $5060 per contract or roughly $1m.

Yes, this is a lot of risk unless you are a large trader.

Javier · Jul 21, 2015

you mean 21mill (the number of asks)? oR I waas correct, to lift 200 ask in sp I would need 200 contract = 105,000$ per contract.

If is that,it is lot of money, i can see lifting a lot of them. Its almost impossible to have that amount of money :S

CliffordHarris · Jul 21, 2015

With all due respect, you need to do a little homework first. All the information your require is online. Here is a good resource - http://www.cmegroup.com/education/

onemoreshot · Jul 21, 2015

You only need about $100,000 to trade 200 contracts intraday. You can trade that kind of size for some contracts (ES, ZN) but most are way to thin to market order 200 at one time, you would have to work your order over several price points in the thinner markets to move that kind of size. Even with ES you might be better off lifting the offer with a limit order at the offer price instead of just using a market order.

Javier · Jul 22, 2015

thank you one more shot

Javier · Jul 22, 2015

CliffordHarris said:
With all due respect, you need to do a little homework first. All the information your require is online. Here is a good resource - http://www.cmegroup.com/education/

well cliford i have read all about education in CME and even market rules, etc about, but is not easy to understand all that information. Thanks anyway =)

volpunter · Jul 22, 2015

what do you actually try to ask? Could you please check your English grammar because it currently renders what you are trying to say almost worthless.

Javier said:
lets assume i would wanna play hitting bid, or offer to lift resting orders.. (not interested but.. for learning). If i see a 200 resting order in the offer, sould I market buy order 200 contract??
I think thats a huge number of order with extreme risk, but maybe any experts know how is this.

tx.

volpunter · Jul 22, 2015

dude, please please please stay away from this market. You will be eaten alive and I guarantee you with 100% certainty that you won't last even 6 months. You have definitely not read "all" the information CME disseminates else you would not ask such questions. Respect yourself and get at least more education unless you delight in getting butchered.

Javier said:
well cliford i have read all about education in CME and even market rules, etc about, but is not easy to understand all that information. Thanks anyway =)

i960 · Jul 22, 2015

Just because the bid or ask is 200 doesn't mean it requires you trade 200. You could hit the bid or lift the offer with a 1 lot and it would then be 199.