Say No To Thin E-mini Spread

>>As for my original argument, regardless of the tick size, their will still be a .20-.30 spread in the minis.

I really doubt this considering the current huge amount of volume.

>>The only people willing to narrow this spread will be those who have to puke their positions and give up their edge, not those smart traders who enter correctly.

Another nonsense like 'the people who care comission is those who failed to have their position correctly'.
 
Quote from jaming5002:





In short, SP Open Int. is 7-8x the size of the ES open int. This is the money that will "move the market" if it chooses to, not a bunch of e-mini retail traders. (Please don't respond to this with some pathetic argument that e-weeny traders create arb. opportunities which moves the market.) As for this thread, I'm probably done with it.
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If you want, we can have the discussion again in a few years. If the pit still exists.

Let me ask you question in regards to price discovery. Is T&S more accurate and faster in the big pit or the mini?
 
Quote from cheeks:



If you want, we can have the discussion again in a few years. If the pit still exists.

Let me ask you question in regards to price discovery. Is T&S more accurate and faster in the big pit or the mini?
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Mini ...
 
Quote from cheeks:



If you want, we can have the discussion again in a few years. If the pit still exists.

Let me ask you question in regards to price discovery. Is T&S more accurate and faster in the big pit or the mini?
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I agree with you that the pits days are numbered. As I'm sure you know, the SP already trades on GLOBEX. SP continues to be the contract for price discovery. The sheer size of it makes larger positions easier to enter into. I think SP will always be the contract for size. Not a mini trader myself but I'm sure that if an offer for 1000 or 2000 additional minis came up on the screen at once, the liquidity of the posted bids would disappear quickly. It happens in all elec. markets. This problem has yet to be addressed by any exchange or elec. market and is the lifeline of the pits.

Finally, to those still insisting that mini spreads will be .10 (they won't) if it moves to a .10 tick, why don't you trade the mini dow. Has a 95% correlation to the SP. It has spreads of 1 tick, or $5. You'll hardly ever see that spread though, more typically 2 or 3. Why? Low tick makes somewhat illiquid and hard to scalp and SCALPERS CREATE LIQUIDITY. known fact.

It will be interesting to see what the CME does with the $160 Million it got from the IPO. I'll be willing to respond to your other question as soon as someone reasonably refutes my answer that open interest is as important to price discovery as vol.
 
Quote from aphexcoil:

The poll looks like our last presidential election. Pretty damn close either way. 50/50 split.
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The poll is meaningless.

You can just delete your cookie and vote again, as you can on all internet polls.
 
Quote from kenokabe:

>>As for my original argument, regardless of the tick size, their will still be a .20-.30 spread in the minis.

I really doubt this considering the current huge amount of volume.

>>The only people willing to narrow this spread will be those who have to puke their positions and give up their edge, not those smart traders who enter correctly.

Another nonsense like 'the people who care comission is those who failed to have their position correctly'.
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Why do you doubt that? The pit is the most liquid market and still maintains these spreads. NO SMART TRADER WILL RUIN THE SPREAD. Those that do narrow the spread will be picked off and have short trading careers.

For Ex. lets say currently mini spread is as follows:

200 bid at even
250 bid at .25

250 bid at .50
100 bid at .75

Large order to sell 400 at .50. What happens? Bids at .25 disappear because they think the seller knows something.

Large order to sell at market. The .25's get hit and so the even's. Who's still in the game? Those who bought at even. Why? Not down as much. Some of the .25 buyers will want to try to scratch and sell at .25.

Natural tendency is to want compensation for your risk. This will maintain decent spreads. Those who want to stick their neck out to far will be done trading shortly. The scalpers will always have the largest posted size and they won't ruin the spread. This is what puts food on their table. Enough arguing. I'm done.

In Peace
 
>>Finally, to those still insisting that mini spreads will be .10 (they won't) if it moves to a .10 tick, why don't you trade the mini dow.

Please stop telling to the others what to trade. Everyone has a reason to trade what she choses. What we are talking right now is Emini, ok?
 
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