| The "big" money in emini trading is in the ES (S and | | | | volume. |
| P) contract and most traders relish the idea of | | | | Did I mention that some of the best traders in the |
| cashing on the allure this contract holds. And it's | | | | world trade the ES, and they are, in essense, your |
| true, the ES contract commands a tremendous | | | | opponents in the emini trading game? Further, there |
| amount of participation, and results in a huge number | | | | has been, in recent years, rampant speculation by |
| of contracts traded every day. For the average | | | | black box systems on the ES, which many blame for |
| trader, slippage is not a real worry on the ES | | | | some of the irrational behavior the contract exhibits |
| contract because of the overwhelming volume | | | | from time to time. I will leave conspiracy theories |
| traded in this contract. | | | | for you own judgement, but the ES can, at times, be |
| The YM contract, on the other hand, seems | | | | a frustrating contract to trade. |
| diminutive in volume stature when compared to the | | | | The YM contract on the other hand, is a more |
| ES contract. And while you can easily trade 100 | | | | genteel contract to trade. I have watched many |
| contracts at a time on the ES (which I personally | | | | traders fail miserably on the ES and switch to the YM |
| never have), 100 contracts would stretch the liquidity | | | | with astounding results. In my opinion, the YM is an |
| of the YM contracts volume. One quick note, all of | | | | easier contract to trade as it more accurately |
| the open interest is not correctly reported on both | | | | reflects the real market action occurring in the |
| contracts, as some firms use stealth type technology | | | | contract. It seems more unfettered by random and |
| to conceal a portion of the volume they are trading. | | | | inexplicable price action you can often find on the |
| Just the same, the ES is certainly the grandaddy of | | | | ES. Though the market may seem a bit thin, at |
| the emini contracts. As I have mentioned in other | | | | times, I have never had serious slippage issues |
| articles, the futures markets are a zero-sum game, | | | | trading ten contracts, and have heard similar |
| which is to say that for every winner there is a | | | | comments from fellow traders. |
| corresponding loser. This contrasts to the NYSE | | | | So if the ES has been a problem to trade, try |
| where unmatched trades are covered by market | | | | switching to the YM for a while and see if your |
| makers who make sure there is a trading market in | | | | results don't improve. |
| their respective stock regardless of the short or long | | | | |