E-Mini Calendar Spread Tick Size - Emini Index Futures Trading | futures io social day trading
futures io futures trading


E-Mini Calendar Spread Tick Size
Updated: Views / Replies:2,696 / 2
Created: by Jsmith10 Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

E-Mini Calendar Spread Tick Size

  #1 (permalink)
Trading Apprentice
Huntington, NY
 
Futures Experience: Beginner
Platform: Activetick
Favorite Futures: ES
 
Posts: 1 since Jul 2014
Thanks: 0 given, 0 received

E-Mini Calendar Spread Tick Size

I am trying to test various ES strategies. Obviously, tick size plays a big role in profitability, assuming purchases at the ask and exits at the bid. I know that tick size is reduced dramatically to .05 points ($2.50) on the E-mini. Can someone give an actual example of a spread trade (with accurate figures)? How does a trade become more profitable with the reduced tick size in this type of trade?

Are there any other ways to reduce the spread when trading the E-mini (other than buying on bid and selling on ask - which I assume can't be done that often in scalping)? Thanks.

Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Elite Member
Berlin, Europe
 
Futures Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
 
Fat Tails's Avatar
 
Posts: 9,653 since Mar 2010
Thanks: 4,226 given, 25,601 received
Forum Reputation: Legendary

Answer
This post has been selected as an answer to the original posters question Answer


It is unusual to trade calendar spreads for index futures. For futures based on a price index (case ES) the spread only depends on dividend and interest rate expectations and the nominal value of the stock basket. For index futures based on a total return index (case FDAX) the spread only depends on interest rate expectations and the nominal value of the stock basket.

If you enter a spread on index futures, there is no reason that its fair value changes, unless there are substantial changes to the short end of the yield curve. Playing an arbitrage game to exploit temporary market inefficiencies in the pricing between two contracts is not something retail traders should try to do. This is the privilege of high frequency traders using bots, low latency connections and having lower commissions.

If you want to trade the yield curve, then you would trade spreads on interest rate futures.

If you want to trade cyclical patterns in physical supply and demand, then you should stick to commodities and avoid financial futures. In this context gold futures should be considered as financial futures.

I do not see a single reason to buy or sell a spread on index futures, except for rolling my position from the old to the new front month around rollover day.

Reply With Quote
The following 5 users say Thank You to Fat Tails for this post:

Reply



futures io > > > > E-Mini Calendar Spread Tick Size

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
ZN TICK SIZE AND VALUE gparkis Bonds and Interest Rates Trading 12 October 28th, 2016 05:49 PM
CL vs QM (crude oil) tick size/value, margins Big Mike Commodities Futures Trading 23 April 9th, 2013 09:10 PM
Indicator to show average tick size JamesBahn NinjaTrader Programming 3 January 9th, 2011 10:13 PM
Tick Size LukeGeniol Terms (Glossary) 0 September 8th, 2010 07:28 PM
putting bid size and ask size on the Market Analyzer trivto57 NinjaTrader Programming 4 June 4th, 2010 08:00 AM


All times are GMT -4. The time now is 10:51 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-14 in 0.06 seconds with 23 queries on phoenix via your IP 54.90.207.75