Guys, Is there any inherent advantage to trading SP over ES? I get better fills on ES but the commission is killing me. Also, it seems SP is only available on globex after market close. Will this ever change?
- No - No - And !! NO !! (ever SPX RTH on Globex) If commish is killing you, your trading style is "wrong", either: - lease a seat - or go less frequent - or go to EUREX
local_crusher...its not the frequency of my trips..but rather the number of contracts I have to buy on emini instead of sp. Having said that I get horrible fills in the pit v. globex...
It does depend on how you trade and second what you are paying for commish. If you trade one contract and make a full point ($50) and, for example, you pay a conservative $5.00 per round turn, I'd say thats a good return. Now if you trade alot(overtrade) and only average a half a point and are paying $10 per round turn, then of course that rate of return will get you. Maybe tell us a little bit more of you trade.
Kingfin2 is right. I show some of my students that I can trade one contract using Trade Station (not the fastest fills) paying the full 5.00 per round turn on the YM and still make money. On the other hand if the trading methodology is out of synch, paying 1.75 in commission will not help you. Regarding bad fills, that is a function of what style you use. A retracement style where you put a limit order at projected resistance (such as Friday) would get you a better fill, but even in a down market there can be brutal retracements. Most of our trades Friday were (re-break) trades, where you went market as soon as the trend reestablished itself. It was kind of funny, but if you look at the tape of the room calls, there were more than a few times when some of our traders commented things like "damn it, bad fill." Then 30 seconds later were surprised to see the market giving them a 20 point profit. The bad fills were caused because they timed the market just as a few hundred other traders were correctly guessing the reassertion of the trend. Sometimes a bad fill means no heat on the trade. Sorry for the detailed response, but there were some intelligent comments here. Most of the time I just wade in to a bunch of sad people content to just rip each other all the time---so I have to adjust the content of the response. Successfully, Alex L. Wasilewski Co-Founder & Head Trader Trades That Work www.puretick.com 1-877-GOLONG1 (1-877-465-6641)
Thanks guys for both your responses. I guess it was more a comment/wishful thinking that I can reduce my cost basis with same net exposure( i.e. 1 SP instead of 50 ES). The few times I tried to get filled in the pit on SP the slippage was wayy more than what i would have paid if I had just done a market order on globex for 50ES instead.