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As was already noted, a 1,000 contract trade on the YM would not only move the market, it is simply seldom if ever seen. Bigger traders who may occasionally dabble in the smaller electronic markets beyond the ES most often break their large trades down to disguise them and seldom take them all in one fell swoop anyway. They don't want other players piling on at their level, they are more dependent upon the mass horde of retail traders jumping in more toward the end of the move so it is then easy for them to exit for a tidy profit. They don't want to give away their intent from the very outset.
I also think that with the more limited liquidity of the YM, a 100 lot contract size or greater would suffer a good deal of slippage in getting the whole thing placed in addition to alerting everyone else to the point of your participation and the the possible strength of your trade. |
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I agree ez. A 1000 lot on the YM... we are talking severe slippage. Around 20-30 lots are traded at each tick. Which would cause more than a 30 points slippage. The liquidity on the ES allows big players to trade this instrument.
I also think market manipulation is hard in the futures market. In order to manipulate the ES, we are talking very deep pockets.