whats up with ER2?

Discussion in 'Index Futures' started by Ripley, Aug 10, 2005.

  1. sorry for the misunderstanding quah, i was referring to visiontraders comment

    wondering, what's an unreal order anyway lol. it's a little frustrating because i've been lucky ahead of a handful of spikes like this but never act on it, not wanting to risk a bust and still be short above the spike if it goes there. ...then there's the issue of relinquishing a short into some sort of crash. just wanna know how best to estimate the bust line. i went looking for the info in CME rules once and didn't find it
     
    #31     Aug 10, 2005
  2. Well, there is always the fat finger possibility -- still real orders just not intentional orders. In this case, it was kind of weird the way the bids just seem to have disappeared. A thousand contracts is usually good for a 1 pt move 2 at most in ER2.

    And it could just be me not having looked at a market depth screen in awhile but I don't remember seeing 200+ contracts sitting on the bxa before.

    Certainly an interesting event. Hopefully, there will be a news story to explain it tomorrow or later today.
     
    #32     Aug 10, 2005
  3. I've got an interesting theory on why this sh*t happens.

    They are fishing to see what kind of orders are on the book, before they start selling for real. If some clown is there for size , they bang it good, if not, they have to sell slowly like we are seeing now.
     
    #33     Aug 10, 2005
  4. Well, it seems to be heading down there for real now! Thats going to piss a few people off big time.

    Maybe I am a little spoilt with the SP and NQ, but some of the shit I see on occasion on the YM and ER2 is grey hair material... (for me at least, I autotrade SIFs, and discretionary trade the ES and NQ for fun)...
     
    #34     Aug 10, 2005
  5. Another possibility is someone heard something and front ran his "friends". :)
     
    #35     Aug 10, 2005

  6. Doubt it. They would have no reason to get so sloppy about it. Why sell so far under the market... Nah, I like my theory better.
     
    #36     Aug 10, 2005
  7. Thing is, there are all kinds of games all the time. You don't even see 99% of them.


    Sometimes, they do stuff so obscene , it can't be hidden.
     
    #37     Aug 10, 2005
  8. In fact ,I dare someone who does this stuff to fess up and give an example.

    I won't be holding my breath.
     
    #38     Aug 10, 2005
  9. stock, did you say $500, or $5000 ?
     
    #39     Aug 10, 2005
  10. This is the first time ive seen a spike like this on ER2 in
    almost a year of day trading.

    This seems to caused a large order being keyed in at the wrong
    value.
    Result:
    Stops hitting stops hitting stops and the price runs down
    10 pts. Then the arbs kick in and push the price all the way
    back up.

    Feature of electronic trading, nothing anyone can do about it.
     
    #40     Aug 10, 2005