CME reduces Tick Size for Spread in E-minis

[juano]

Hello all futures Traders

CHICAGO, Feb. 7, 2003 – The Board of Directors of Chicago Mercantile Exchange Inc. (CME) has approved a modification to the tick size for trading of calendar spreads in its E-mini™ S&P 500® and its E-mini NASDAQ-100® contracts. The reduction in the tick size for calendar spreads, from .10 index points to .05 index points for E-mini S&P 500 futures calendar spreads and from .25 index points to .05 index points for E-mini NASDAQ-100 futures, is in response to customer requests to bring more efficient pricing to the market and harmonize the tick size with the standard, pit-traded versions of the contracts.

i just have read this and i wondering why nothing happended with esignal data. everything is the same with my charts for es

just curious about it


juano

[ACM]

Re: Reply to post 'CME reduces Tick Size for Spread in E-minis'

juano
This only concerns calendar spreads not the individual contracts.
Alex

[juano]

thak you alexis for your answer,

if you don't mind could you explain me what calendar spread is?

[ACM]

Re: Reply to post 'CME reduces Tick Size for Spread in E-minis'

juano
In a calendar spread you are long one expiration and at the same time short another thereby betting that the spread is going to widen or narrow depending on whether you bought or sold the spread.
For example on Feb 17th you bought 1 ES M3 and sold 1 ES H3.



At the time M3 was 2.5 points less than H3 so you would have received 125 dollars (2.5x50).
Today that same spread is 1 point ie you would have to pay 50 dollars to close it hence you would gain 75 dollars.
FYI though the calendar spreads referred to in the CME notice you posted are a market of their own and not the result of a simple spread as shown in the chart above (although they are obviously related).
Alex

[juano]

Crystal Clear Alexis

thank you
Juano