Deciphering the e-mini futures price action

Discussion in 'Index Futures' started by yoyotrader, Apr 27, 2020.

  1. wrbtrader

    wrbtrader

    Your initial question was loaded with many different topics. I don't think there will be a key phrase to use for finding all those topics.

    Thus, select one topic only and search it on Google / Bing...gather all the info you like. Next, do the same for your next topic and so on until you have the info you need and contact info.

    I wouldn't be surprise is some of the search results leads you back here to Elitetrader.com even though it may not have been found via the ET search all by itself.

    wrbtrader
     
    #21     Apr 29, 2020
    yoyotrader likes this.
  2. SunTrader

    SunTrader

    #22     Apr 29, 2020
    Real Money likes this.
  3. Sprout

    Sprout

    #23     Apr 29, 2020
    Real Money likes this.
  4. Real Money

    Real Money

    If you are a serious student of finance, you can learn this stuff in any good textbook on derivatives pricing. It's also part of the CFA institute testing curriculum (level III). A CFA title means you work (or have worked) for a regulated firm. I'm mostly self taught.

    I've heard traders call this the most important differential in the entire market. I don't disagree with that, and the fact that you can derive a funding rate from it backs that up.

    The trading in rate differentials (also called "yield spreads") will affect change in the the risk free rate, and therefore the futures premium. This means that treasury moves can and will move ES.
    I'm talking about it just to add value to the forum and because it helps me review things I've already figured out. Most traders don't care about this stuff or don't have the background and/or aptitude to learn it.

    My edge is related to this topic, that's why I can talk about it in detail.

    Some guys on the forum know this stuff. ET members like sle and Maverick74 know all about it. Actually, Maverick74 even knows what index calendars are arb'd against. I don't think that one is on the CFA curriculum. :)
     
    Last edited: May 3, 2020
    #24     May 3, 2020
  5. schizo

    schizo

    Technically, S&P 500 should only respond to the 500 of its stock components. However, if you've witnessed the 2001 Flash Crash, that's not the case at all. As it turned out, that particular event happened due to the massive movement in the S&P futures. That explains the futures market can indeed influence the spot market.
     
    #25     May 3, 2020
    Fx-Game likes this.
  6. SunTrader

    SunTrader

    Do you trade the eMini or any of the other index futures?

    Because this is really basic stuff. The daily interplay between the spot (cash) and the futures, one affecting the other back and forth is continuous. Just like between the bulls and bears.

    Not only during particular market events.
     
    #26     May 3, 2020
    Real Money likes this.
  7. I understand the interplay of the different instruments that are all tied to each other. WHat I was not sure about - is 1) Which one of those instruments is THE first to change - that automatically affects others, if there is such. and 2) Any courses, videos - that go over real market examples and pointing out things like: Here big players are setting the Keltner chanels and the retail trailers are hichhiking.... or here Algos are stopping out retail traiders, etc.
     
    #27     May 4, 2020