YM (traded on ECBOT) is more spikey than any of the Globex traded e-minis (ES,NQ,ER2). I think this because Globex only allows Stop Limit orders so stops dont run the risk of cascading and causing 100 pip spikes like you sometimes get in the YM. For this reason alone i will not trade YM until it moves to Globex.
I totally agree with TD with one addition. If you find your method is consistent with all of them then watch all 4 at the beginning of the day to see which on is setting up the best trade entry.
I think I found the real traders on this website! I appreciate all of your guidance, I hope this thread gets more responses in the future.....
i like er2 best b/c you get more bang for your buck. $100ppt., $10 per tick. usually little slippage - only a tick btwn bid and ask. fewer contracts per trade also keeps commissions down. to get $100 profit with er2, only need a point. need 2 points to get the same with es, for example. when i started learning, the guy i learned from was trading es, so i traded it too. eventually migrated to er2 for the reasons listed. on the other hand, if you want a slower pace and don't care about higher commissions, ym may be the vehicle for you. of course the price you pay in commissions doesn't matter if you're not making money, so in the end you must trade the one that you trade best. i like the fast pace of er2 - get in and out quick and make a buck. es is in btwn the pace of ym and er2 and is the vehicle of choice for many traders.
I am completely new to futures and I have a few questions: 1. Completely stupid question, please bear with me: Do the moves in the futures contracts mirror the indexes or do the indexes mirror the futures? In other words, which moves first, for example: the ES or the actual s&p 500? 2. How much is each point worth in $$ per contract for all of these: ER/ES/NQ/YM... And which is the least riskiest? 3. Do downtick/uptick rules apply to futures as in nyse equities? Or can you short easily? 4. Do futures stop trading at 3:15 pm? 5a. With a $5000 deposit, can I trade any one of these contracts? 5b. How many contracts of ER can I trade with a 5k deposit? Thanks a lot
1. Completely stupid question, please bear with me: Do the moves in the futures contracts mirror the indexes or do the indexes mirror the futures? In other words, which moves first, for example: the ES or the actual s&p 500? A: Unfortunately there is not a perfect science here. If there was, everyone would simply trade the lagging instrument. 2. How much is each point worth in $$ per contract for all of these: ER/ES/NQ/YM... And which is the least riskiest? A: spend a little time at www.cme.com and www.cbot.com As for 'least riskiest' that really depends on how you define risk. 3. Do downtick/uptick rules apply to futures as in nyse equities? Or can you short easily? A: No uptick rules, easy to short. 4. Do futures stop trading at 3:15 pm? A: Yes and now. At 4:15pm EST the current session ends, takes a 15 min break and then reopens. When it reopens however volume goes down dramatically. 5a. With a $5000 deposit, can I trade any one of these contracts? A: Sure, especially if you want to day trade. 5b. How many contracts of ER can I trade with a 5k deposit? A: Depends on what margins your broker gives you. I can appreciate the questions, and while you will get some answers here, you REALLY need to spend hours at the 2 websites I gave you. Each site is full of information and very good resources.
I don't trade minis but from what i remember from studying them 1.i believe the big contract moves first but they pretty much mirror each other.Some pit traders work in pairs to catch small arb trades but its pretty much impossible to do it from home 2. ym= 1 tick 5.00 nq=1 tick (.25) 5.00 er=1 tick 10.00 3.no downtick/uptick rules apply 4.the minis trade 24 hours mon-sat i believe 5.most firms will let you trade for 5,000,many for 2,000 5. many firms have 500.00 daytrading margins for minis
Thank you for the links everyone - didn't realize they had so much educational material on the exchange sites - they're a great first step. I will be following the advice of several of these posts to get me going, especially on the beginning steps.
Regarding the questions about the various futures contracts, there is a lot on info in John Carter's book 'Mastering the Trade'. It may be a few $ well spent. Also have a look at his website www.tradethemarkets.com. He has a few articles on the CBOT site too. Eg: http://www.cbot.com/cbot/pub/cont_detail/0,3206,1070+40883,00.html Mo