ES to YM to NQ to ER2 Point Equivilents

[treydog 10]

Hi i am new to e mini futures trading. I was wondering what the tick or point equivalents are between the different contracts using 1 ES point or 4 ES ticks as the baseline. For example I heard that 10 YM points = 1 ES point. What are the other relationships like 1 ES point = how man NQ points or ER2 points. Thanks for your help

[BlueHorseshoe 10]

Hi,

 

The relationship you're describing is fairly approximate. 1 ES point equals 10 YM points in the sense that those movements in each contract are both worth $50.

 

But this doesn't mean that when the ES moves 1 point the YM will make an identical movement of 10 points - they're based on diferent underlying indices, remember.

 

I've never traded the @NQ, and I can't remember what a tick is worth, but basically if you find out how many NQ ticks produce a price per contract change of $50 then this number of ticks is equivalent to one ES point.

 

I hope that makes sense and is helpful, and good look in your trading.

 

Bluehorseshoe

[treydog 10]

thanks for the explanation it makes much more sense. I was sitting there trying to find the distance traveled in the instrument ratio like 10 pts in YM to 1pt in ES. But it was just about contract specifications I understand Thanks a lot just made me stop pulling my hear.

[BlueHorseshoe 10]

thanks for the explanation it makes much more sense. I was sitting there trying to find the distance traveled in the instrument ratio like 10 pts in YM to 1pt in ES. But it was just about contract specifications I understand Thanks a lot just made me stop pulling my hear.

 

 

No worries. Instruments such as the YM, ES, NQ, DIA, SPY, QQQQ, do generally keep approximate pace with one another, partly because they share components, partly because they reflect long term macro-economics, and partly because there will be pairs trading and arbitraging between them. But there is no way that you can expect one to move by a certain precise amount whenever another does.

 

Bluehorseshoe