Discussion in 'Index Futures' started by Thunderdog, Apr 27, 2008.
Please participate in this poll and kindly post the reason for your preference.
Smaller or Larger than what?
Take the index of your choice and its current tick size. Now, would you rather that this tick size be larger or smaller? Alternatively, is there perhaps one index that you prefer over another in part because its tick size is either larger or smaller than that of another index?
Not sure if I am understanding your poll, but here goes:
I trade YM and the tick size is perfect, 1=1. The value of the move could be greater, however. $5 per tick demands 4/5 contracts to payoff.
Oh, Tick size, sorry.
tick size on es should be reduced... it will tighten the spread obviously and also will help reduce the amount of BS that goes on due to the floor sp pit traders who can trade th big sp in .1 increments..instead of quarters..... its 5 for 1 and they do alot of business for cme.. so it might be awhile..
same goes for nasdaq mini... this is why i prefer CL and R2k
I agree with your comment regarding ES and its disproportionate tick size in relation to its larger counterpart. Specifically, SP is 5 times larger than ES but its tick size is only twice as large. However, I'm not sure I understand your comment regarding NQ. NQ's tick size is exactly proportionate to the larger contract: both the contract size and tick size of ND is 5 times larger than that of NQ. In fact, that is one of the reasons I prefer NQ over ES.
I'm not sure I understand what you mean.
As I had expected, the majority of respondents -- three quarters as of this writing -- favor smaller tick size. I was hoping to get an understanding of why anyone other than people who trade nothing but the bid/ask spread would prefer a larger tick size. Unfortunately, the minority of respondents who voted for larger tick size did not explain the rationale for their choice. If you are one of the respondents who favors larger tick size and don't limit your trading solely to the bid/ask spread, would you please explain your preference?
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