look the spoos are going to 500 and if we bottom at that level and volatility collapses then we are looking at a 5 point daily ATR........thus i think its a good idea to have a $5 tick in ES.........YM has it, NQ has it........ER2 has a $10 tick and even that is preferable to a $12.5 tick. more ticks = more profit opportunities
Wasn't there a thread here somewhere about a LIFFE contract they reduced tick size on only to revert back after the volume went to shit? Look at ZB, might have been a coincidence but if I'm not mistaken the volume on it declined sharply after they reduced it's tick size. Most of the traders of that contract, on ET at least, would like to see that reversed.
ZF trades at half the tick as ZB and seems to do ok. NQ hasnt suffered after its tick size was reduced from 0.5 to 0.25. ES should really trade at 0.1 tick increments. No reason to not really. And all the treasuries futures (ZF,ZN,ZB etc) should trade in 0.01 decimal tick increments too.