E Mini Dow/Es ????

kent

Junior member
42 0
Morning all!

I am thinking of day trading E mini Dow / ES via IB. From my understanding of these, I am under the impression that ES is deemed as preferable. I welcome comments re. this and any info. re. relative costs involved would be appreciated......also the address of good solicitor/ shrink! ( to help with filling in the IB app. form )


Thanks.

Ken. T.



The glass is still half full!!
 

Trader333

Moderator
8,605 932
IB Trading

Hi Kent,

IB are very good for trading the Dow and Emin S&P. The only real difference between the 2 is that the S&P is less volatile than the Dow. The value per point is $5 for the Dow and $50 for the Emini S&P. The minimum move in the S&P is 0.25 points and for the Dow it is 1 point. The cost of trading these markets is $10 per month which is waived if you do enough trades to generate $30 of commission. The form filling in is quite long winded but once done is not too bad. The only real issues with IB is that their telephone backup is poor. So if you were stuck in a trade and something went wrong you could be in a telephone queue to get out. Other than that they are pretty competitive and I have never found any problem with liquidity.


Good Luck



Paul
 

JonnyT

Senior member
2,560 22
Hi Kent,

The ES is the more liquid of the two, so personally thats what I trade. You can trade over 10 contracts quite easily in one bang normally. I doubt you could do this with YM.

Either way both these indices are noisier than there European counterparts and to my mind are more difficult to trade. However get it right and the Yaught will soon be in the Harbour.

JonnyT
 

kent

Junior member
42 0
Morning all !

Trader 333 / Jonny T

Thanks for your reply and info.
JT......." get it right and the yacht will soon be in the harbour " go on, be a devil, "gis a clue"

Ken. T.
 

oatman

Senior member
2,879 22
Paul,

"The only real issues with IB is that their telephone backup is poor. So if you were stuck in a trade and something went wrong you could be in a telephone queue to get out."

Just a small point; that could be more costly than any commission.

I'm lucky that I can ring my broker's trading desk direct and square up instantly. You really can't afford to queue. When you crash or freeze there's no worse feeling than having a position and absolutely no control.

Good luck,
 

JonnyT

Senior member
2,560 22
Hi Oatman,

I've carried out a risk analysis of using IB for my style of trading.

I reckon I would need around 10 bad events per year, where the market went really big against your position to even get close to wiping out the savings you have made om commissions.

As yet in 5 months I've experienced no problems whatsoever.

Of course you can also hedge under these circumstances with another broker or even SB company.

JonnyT
 

JonnyT

Senior member
2,560 22
Hi Kent,

Device a system that can take 2 points plus per day of the ES, or 10 points per day of FTSE, or 7 points per day off DAX.

Try PnF...

Trade in size and the yaughts in the Harbour.

JonnyT
 
 
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