Can someone please explain to me the differenc between the two differemt S&P futures contracts? They seem to have different quotes. Which one do you use, or is better to use to gauge the market?
SP is pit-traded. ES is electronically traded on Globex2, which means you can trade it after hours and evenings (except Fri & Sat) though liquidity is thin until Europe opens. SP = $250 per point. ES is 1/5 the size of SP to make it more tradable for the masses, so 1.00 point = $50. SP trades in .10 tick increments while ES trades in .25 tick increments. Because SP is pit-traded, sometimes the quote you see will lag ES which is electronically quoted. Rarely have I seen difference in quotes of more than 1 handle (1.00 points) for 60 seconds, and in those cases I was never certain if that was due to SP quote lag.
I'd think they'd have to be on the floor, since only people on the floor can trade in the pit *AND* quickly call to another assistant to arb with the electronic e-minis. How is someone off the floor at their house going to trade the big boy?