slippage of FTSE100 futures

A

ADX_trader

I have been trading FTSE100 futures for a few weeks. The slippage seems to vary from time to time. Sometimes it could go up to 4 points! :( But the slippage of ES is nearly always 0.25. Is there any meaning in this? Does it mean the FTSE is more risky?
 
Originally posted by ADX_trader
I have been trading FTSE100 futures for a few weeks. The slippage seems to vary from time to time. Sometimes it could go up to 4 points! :( But the slippage of ES is nearly always 0.25. Is there any meaning in this? Does it mean the FTSE is more risky?
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"slippage" on the e-minis of .25 is only one tick, and I am assuming you only trade with market orders.

What is the volume of the FTSE100? That is probably the answer to your question.
 
Just thinner. What does it trade, 30k a day. ES trades half a mil. FTSE is more analogous to US Dow 30 futures. Similar volume, limited number of issues comprising the underlying.
 
primarilly it just means the volume in the es is enough to avoid slippage and the volume in the ftse is only adequate for a percentage of time, so choose the high volume periods of the day to trade it, balanced against volatility
 
Originally posted by ADX_trader
I have been trading FTSE100 futures for a few weeks. The slippage seems to vary from time to time. Sometimes it could go up to 4 points! :( But the slippage of ES is nearly always 0.25. Is there any meaning in this? Does it mean the FTSE is more risky?
More...

During normal trading hours 8-4.30(UK Time) it is usually 1-2 points.After 4.30(after hours) it tents to increase
 
birgulino

since all indicies are interrelated - it may be possible to get an entry point for a trade at a more advantageous level on an illiquid indicie than on a liquid one,

but the exact risk reward ratio is important, since the exact exit point of the trade will need more margin since it will not have the advantage of walking away from the trade (as u do on the entry) if the right price is not fulfilled
 
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