ES most manipulated?

Discussion in 'Trading' started by short&naked, Dec 10, 2008.

  1. I keep hearing that the ES (SP500) is the most manipulated instrument out there? How can that be since it has the most volume? If anything, I think that individual small caps would be the easiest to manipulate.
  2. Floor traders, index arbitrageurs, and option market makers can and do utilize the .25 increment to their advantage. The underlying cash index moves in .01 increments.

    Is that manipulation or conspiratorial? I don't think so.

    BTW: with todays interest rates, based on a 10K "investment", it would take a full year, give or take, to earn $12.50. How much is that ES tick increment worth to you?