Hi All, What is the ALMI spread like these days? Last time I had a look (2months ago) there were multiple market makers and the spread was within a point or two of the ALSI. Has that remained the same? Also, what is the daily volume like?
Being new to trading I have been trying to trade with the ALMI for the past few months. Some important things to note Cost to get in and out is about 30 points as opposed to about 3 points for the ALSI so this is quite a big issue. Spreads are not really an issue, but because it trades less than the ALSI you don't get stopped out of trades until the ALMI actually trades past your stop. I've had the market move 30 - 50 points past the stop level before being stopped out of the ALMI. That said it is a great way to learn with limited risk as opposed to the ALSI
That's why you chart using the ALSI. When you see your stop being hit on the ALSI, you exit your ALMI position. You can of course have a hard stop in place just in case, but generally you'll only have a few points slippage by watching the ALSI, and exiting ALMI when your stop is hit. Therefore imo the spread was always the real issue, which now because it is small isn't an issue any more.