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Strategies & Market Trends : Waiting for the big Kahuna

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To: J. P. who wrote (59237)8/3/2002 12:57:03 AM
From: Saita  Read Replies (1) of 94695
 
< Bid/Ask spread is only 1/2 to 1 tick (6-12 dollars)

No, don't even dream about it....
At least 1 tick on index futures, if you have right electronic platform. Form 1 to 2 ticks realistically.
Always 1 tick, at least, on interest rate futures and unlimited slippage if trade anything in NY-);

<4) You cannot really set stops with options, with futures you can set very tight stops.

Stop order became market one after your price was hit.
Your order would then be executed as market order.
If market fast you will get a dozen or two ticks over your stops.
Don't fool yourself.

Sergey T
CTA
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