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Old 03-04-2007, 02:38 PM
wsam29 wsam29 is offline
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Re: Big Dow?

The one thing that I can think of the DD never matching the YM in terms of the bid/offer, the pros that make a market for the DD need to off set their trades with the YM.

Just think.

DD 12000 bid
YM 12001 bid

if the market maker gets hit on the DD bid, he can immediately offset his risk by selling 5 YM and pocket 1 tick. One thing I learned about how market makers think, is how they can offset their risk ASAP.

The SP and ES are the same, from what I heard its pit traders offsetting their risk with the ES. Just imagine, an instutution comes in with a big order and to keep their business the local would fill the order and offset his risk with the ES in order to keep that "client".

They do play favourtism in the pits from what I hear as well.

Because its a "pro" or local making the market for DD and SP, their spreads will always be wider than the YM and ES for that reason alone.

Heck if I had the speed and ability, I'd pocket 1 tick all day long and just do volume to make all those ticks.

Just a totally different train of thought for locals.

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