NQ tick size reduced

Discussion in 'Index Futures' started by sammybea, Mar 10, 2006.

  1. esmjb

    esmjb

    the YM is bogus. it will never be half as liquid as the NQ. if all you care about is range X tick size then trade the dax.
     
    #21     Mar 12, 2006
  2. Well volumes are down in the NQ....if they were to increase this would be notable to the comparisons made currently...

    I think this is a smart move and posturing for market share...NQ is far from dead...


    Michael B.
     
    #22     Mar 12, 2006
  3. Thats what the tried with the QQQQ futures...and we all see how thats going. Or rather not going...
     
    #23     Mar 12, 2006
  4. 16% vols don't support a $20 handle at $4k overnight margin, but it's certainly a step in the right direction.
     
    #24     Mar 12, 2006
  5. The Q futures are 1/40 the size of the NQ contract. I'd bet the additional slippage/commissions more than offsets the tick size there -- OEX/SPX dilemma.

    Having said that, for day traders I really think it is both granularity -- tick size -- and volatility -- daily range -- that makes a contract interesting to trade. Of course, for institutions it's primarily liquidity and transaction costs. So there is a clear conflict.

    Since stocks trade much larger volume successfully with penny increments I don't see why futures couldn't as well.
     
    #25     Mar 12, 2006
  6. more ticks , more volume , more executions

    more fees -> CME ?

    :p
     
    #26     Mar 12, 2006
  7. Pabst

    Pabst

    Very true but keep in mind that the SEC has the ultimate input on index futures/options margins. Hence the advantageous margins in commodities, Treasuries, currencies ect. vs. anything having to do with stocks.
     
    #27     Mar 12, 2006
  8. Absolutely true, but it doesn't change the fact that the leverage at 8:1 is half of what is available in the ER2.
     
    #28     Mar 12, 2006
  9. cmaxb

    cmaxb

    I feel like it should be 1/5 point. That would make it $4. That would be weird, but for some reason, it feels right.
     
    #29     Mar 12, 2006
  10. This morning, the NQ has a 2 point spread on low volume. Who the hell is going to trade this crap?
     
    #30     Mar 15, 2006