How do SB companies get decimals on the ES?

[SanMiguel]

ES futures move in 0.25 ticks so how exactly do the SB companies manage to get 0.1 pt moves? I know of one other who states that their price only moves in 0.3 increments.

 

[Chartsy]

i think it's SPY maybe

 

[SanMiguel]

i think it's SPY maybe

Nope, that's a different contract.
It is the actual ES (US500 Z0 on some brokers).

 

[donaldduke]

The spread is always wrapped around the underlying market spread.

So if the ES spread is 1200.25/1200.50, the spread bet firm might quote 1200.2/1200.6, but they wont quote an inside spread ie 1200.3/1200.4 .

Actually worldspreads claim zero spreads, and spreads in general are getting tighter and tighter so maybe one day SB spreads will be smaller than the underlying market spread... buts its unlikely without the SB firm resorting to dirty tricks like requotes and rejected orders.

 

[Ross Spur]

Apart from WS, Spreadco now offers 0.8pt on US30, which is tighter than the underlying YM future.

 

[SanMiguel]

The spread is always wrapped around the underlying market spread.

So if the ES spread is 1200.25/1200.50, the spread bet firm might quote 1200.2/1200.6, but they wont quote an inside spread ie 1200.3/1200.4 .

Actually worldspreads claim zero spreads, and spreads in general are getting tighter and tighter so maybe one day SB spreads will be smaller than the underlying market spread... buts its unlikely without the SB firm resorting to dirty tricks like requotes and rejected orders.

Why wrap it around the spread, why not just give the actual spread?
Yes, to make money but charging a 2 tick spread when the underlying is 1 tick is a little harsh.

 

[BIBIqqq]

In my opinion, I think it's SPY

 

[SanMiguel]

In my opinion, I think it's SPY

Of course - it must be. The SPY is trading at 117 so I'm just going to make up an instrument called US500 and add an extra 2 zeros onto the end and make the number 1170.0.
It is the ES contract just with UK spread added.

 

[Mr. Charts]

SPY is the S&P500 Trust
ES #F is the emini futures contract

When they are both open they move in tandem but obviously have different numerical values.

Current screenshot below.
Richard

 

[SanMiguel]

SPY is the S&P500 Trust
ES #F is the emini futures contract

When they are both open they move in tandem but obviously have different numerical values.

Current screenshot below.
Richard

SPY is nothing to do with the ES futures contract shown on spread betting companies - they are different contracts albeit representing the same underlying S&P500.
Again, the spread is in decimals on UK brokers even though the ES does not move in 0.1 decimals - as said above, it's likely to allow the UK companies to take a better spread but they don't do this on other contracts so I'm wondering why they picked the ES as the contract to do this on.