Just trade the YM or consider 1 ES contract as "3 contracts @ $4.17 a tick".
POLL: Would you like to see ES's tick size proportionate to that of SP?
- Thread starter Thunderdog
- Start date
Just trade the YM or consider 1 ES contract as "3 contracts @ $4.17 a tick".
Yeah, but nah. I'll stick with NQ.
This thread is on drugs.
Only two way's the tick size changes.
1. The contract multiple goes to 25x SPX in which case commissions double.
2. The current contract changes to .10 increments from .25.
The stupidity of the first instance speaks for itself-although don't suggest it to beleaguered CME stock holders. Trading in dimes is also stupid. How many friggin' tick changes do you need? As it is a 30pt ES range is already 120 ticks. Do you really want THREE HUNDRED ticks? Plus if any of you watch the tape you know that a lot of the jumpiness is large MARKET orders which depending on size/liquidity may take out three prices levels even at the .25.
Only two way's the tick size changes.
1. The contract multiple goes to 25x SPX in which case commissions double.
2. The current contract changes to .10 increments from .25.
The stupidity of the first instance speaks for itself-although don't suggest it to beleaguered CME stock holders. Trading in dimes is also stupid. How many friggin' tick changes do you need? As it is a 30pt ES range is already 120 ticks. Do you really want THREE HUNDRED ticks? Plus if any of you watch the tape you know that a lot of the jumpiness is large MARKET orders which depending on size/liquidity may take out three prices levels even at the .25.
Yes, I can see that. I don't know what I was thinking. I had almost no sleep last night and am somewhat of a zombie today. I could have sworn it was corrected...I made so many typos today, most of which I was able to correct in time. Unfortunately, I could not correct the thread title or poll question, and the moderator seems disinclined to do so.
It's a very good thing I took the day off today, despite the fact that it was a decent day.
Moderator Edit: He is not disinclined to do so, he just has a life on Friday night away from the forums (thank God)...fixed as soon as I got the email this morning.
The sky didn't fall when NQ's tick size was changed from $10 to $5, thereby corresponding proportionately with its larger counterpart. In fact, I like it better now. Did NQ's change in tick size prove problematic for you in any way?
Yes, it was. It was a lame argument then, and it is now, as applied to the S&P e-mini.
MSFT, INTC and DELL used to trade in 1/4 point increments, and the SOES bandits made big, big money screwing institutions (er, the owners of the OPM that institutions were running). Decimalization killed that "business"--good riddance. There were warnings about the drying up of liquidity and about how investors might actually pay MORE for that 100 shares of MSFT. LOL.
Spyders already trade in pennies; why not the ES in tenths? There is no real reason other than money: 1,000,000 contracts (or more) X $12.50 X 252 days or so... No wonder the CME isn't interested in cutting it down! Gotta keep that stock price high (especially after THIS week!).
Quarters is not dimes. A quarter in NQ is .6125 cents in the Q's. A shit edge.
The CME only transmits 5 deep DOM. Would it be beneficial to only see half a point of the ES book?
Stoxx trade in full points and Dax in half.
Traders on ET are going apeshit over the reduction of the Bond tick to 64ths. Rightfully so. I made my money trading a $31.25 tick. Five bucks? Too much work, bro.......
Yea it worked great. The Specialist who before had to at least grow balls big enough to bid a quarter for himself in front of the eighth bid in his book could now just put his 13's in front of the customers 12's.