NQ vs full size ndx

shadowtrader · Mar 1, 2003

What are the benefits of trading the eminis NQ futures versus trading the equivalent full sized ndx futures?

Thanks in advance.

FX-Trader · Mar 1, 2003

NQ trades on Globex.
ND trades open outcry.

Many order entry platforms do not support open outcry markets.

Jayford · Mar 1, 2003

You can get absolutely slaughtered on open outcry fills.

If you are doing size, and not day trading, the full contract saves on commission. The fills in a quick market can be so poor that many hedge funds even use the minis instead, and they are doing 100's at a time.

Jay

rs7 · Mar 1, 2003

Quote from Jayford:

You can get absolutely slaughtered on open outcry fills.

If you are doing size, and not day trading, the full contract saves on commission. The fills in a quick market can be so poor that many hedge funds even use the minis instead, and they are doing 100's at a time.

Jay

I agree so strongly with this that I would venture to say it would not be a stretch to believe it would be cheaper to lease a seat than to take the fills on open outcry ordrs if you trade on a daily basis.

Peace,

Rs7

Foz · Mar 1, 2003

Yes, I can confirm that fills are better in the e-mini. So much better, in fact, that it makes up for 5x the commissions.

opm8 · Mar 2, 2003

ok, so knowing the problem with slippage, why not use limit orders?

--opm8

saschabr · Mar 2, 2003

Quote from opm8:

ok, so knowing the problem with slippage, why not use limit orders?

--opm8

ahhhmmm... because of course your limit order will not be filled
until you are significantily bidding out / offering below the
best bid / ask in the E-Mini. Then you get your fill,
when you don't want it any longer.

Tea · Mar 2, 2003

Open outcry should really be renamed "Open collusion", because that is what is going on.

When you can see in the pit what others are bidding - then you can punish them if they make too tight of a market by simply refusing to trade with them. No order flow = no income.

Open outcry is a fatally flawed process when it comes to operating a modern efficient market.

shadowtrader · Mar 3, 2003

Thanks for all the responses.

E-minis it is then. No wonder they have taken off in popularity.