Trading the YM is GRAND

Discussion in 'Index Futures' started by Spectra, Mar 3, 2007.

  1. Get this question a lot. What do you like about trading the YM and why do you only trade it?

    Well, Here are a few reasons why we suggest new traders start out by focusing on the Dow E-Mini YM:

    1. The Dow Jones Industrial Average (YM) is the most widely watched index of large-cap US stocks followed by the S&P 500 (ES). It is considered to be a bellwether for the US economy.

    2. Less slippage. If you get a bad fill on the YM it will only cost you $5/per contract. A bad fill on the ES will cost you $12.50 per contract. This is the equivalent of your broker calling telling you hes charging you an additional $7.50 per market trade.

    3. Margin requirements are less on the YM

    4. The ES/ER/AB tend to be overly volatile at times. Sudden ramps that pierce through stops are not uncommon. Newer traders can not handle this action.

    5. Often times the ES can be used as a leading indicator to foreshadow moves in the YM. We take advantage of this in our trigger system to increase our odds.

    6. Focusing on one instrument day in and day out is less complicated and more productive. It allows you to focus and learn the rhythm of the market your trading. Most people prefer to go to a specialist in one field rather then a doctor that treats everything.

  2. Hi Spectra,

    I'd like to ask a few questions regarding futures.

    1. Does the ym move 1 point at a time?
    - How much is 1 point worth on one contract?

    2. Does the es move .25 at a time?
    - How much is 1 point worth on one contract?

    For example, when I look at a es chart, I see the prints only at .00, .25, .50. and .75...I don't see anything in between.

  3. Scalper007

    Here's a quick breakdown:

    YM - Mini Dow CBT $5 per tick but its volitale / Mirror DIA / Normal increment
    (1 YM contract is equiv to 500 DIA shares) 1 tick is 1 point on the YM so its $5/pt

    ES - S&P 500 CME $50 per full point / Mirror SPY / .25 tick inc or $12.50/tick ($50 per full point)

    NQ - Nasdaq $20 per full point / Mirror QQQQ / .25 tick increment or $5 a tick

    AB - Russell $100 per full point / $10 per tick in .10 incriments ($100/full pt)
  4. sun170


    How Much does 1 YM contract cost?

    What is the margin rate?
  5. Sun,

    That depends on your broker. I've seen them as low as $399 per contract, and as much as $1400. Send me a priv message if you'd like a few broker recommendations.

    It's still more leverage then trading 500 DIA shares and there is no $25,000 day trading requirement.
  6. Thanks a lot Spectra. I've been following your track record and it looks astounding.:)
  7. Ok just don't look at it today :)
  8. Tcbjx9


    Why are over night margins different then intra-day? Isnt there more volatility and risk intra day?
  9. Depends on your broker?Your kidding right?Its set by Cbot if they lower the margins to stupid amounts then they just taking your money.,3181,2142,00.html

    1 YM Initial is $2,813 Maintenence $2,250 if your broker discounts that then THEY are lending you the money.
  10. Intraday margins can be as little as $500 a contract with most brokers. No need to be so angry... :D

    #10     Mar 20, 2007