"... Moments ago, a 65,000 sell order in the E-Mini, equivalent to a notional of roughly $8 billion, sent the S&P 500 tumbling, and breached the 200-day moving average..." https://www.zerohedge.com/news/2018-04-02/nasdaq-tumbles-red-2018 How does one make a trade for 65,000 contracts? The DOM doesn't show anything like that. Isn't there a "trade size" and/or "position" limit? Wouldn't "65,000 contracts" be waaay above either of those??
So how does that work? Brokers representing each side make the trade out of public view? Didn't there used to be something like a "2,000 contract" position/trade limit? (I've never looked into such limits, as I can't trade that kind of size myself.) Wouldn't a trade of such size affect the current Bid/Ask? Seems it would make for a big price change...
How do you know these zerohedge guys weren't lying to make clickbait? It is strange that they would only report on this and not the other news outlet??
Seems price breached a wedge formation. The volume is showing up on chart, they do any on Big S&P's futures? am not surprised by how the chart is showing, 4 pivot highs within 1.25 points-resistance. Bet they were selling the crap out of that high area. Am guessing the were hedging for hedge fund stocks.
In the olden days for stocks, they would negotiate the price privately and then report the trade to the exchange.
In the CME handbook: B538. EXCHANGE FOR RELATED POSITIONS An Exchange for Related Position (“EFRP”) transaction involves a privately negotiated offexchange execution of an Exchange futures or options contract and, on the opposite side of the market, the simultaneous execution of an equivalent quantity of the cash product, by-product, related product, or OTC derivative instrument corresponding to the asset underlying the Exchange contract. The following types of EFRP transactions are permitted to be executed outside of the Exchange’s centralized market in accordance with the requirements of this rule: Exchange of Futures for Physical (“EFP”) – the simultaneous execution of an Exchange futures contract and a corresponding physical transaction or a forward contract on a physical transaction. Exchange of Futures for Risk (“EFR”) – the simultaneous execution of an Exchange futures contract and a corresponding OTC swap or other OTC derivative transaction. Exchange of Option for Option (“EOO”) – the simultaneous execution of an Exchange option contract and a corresponding transaction in an OTC option. For purposes of this rule, EFPs, EFRs and EOOs shall collectively be referred to as EFRP transactions. Use to use this before Forex was an option, put on a protective stop on cash market for currency futures when markets back early 1990s then were not 24 hours and this was off-exchange execution, but wonder if this can be done for ES?
Do you think the "olden days" was easier to trade for profits or do you believe today is better? I like it better when stocks were traded in fractions.