The 1k shares QQQ Single Stock Futures(SSF) contract(Sumbol QKQ), released recently, is potentially a much better trading instrument than the Nadaq 100 Emini futures NQ. Lets compare them: ________________QKQ_______________NQ | | Commissions:_____$1/contract___vs.____$2.40 / contract Underlying value:__1000 QQQ____vs.____800 QQQ shares Therefore, trading one 1000 QQQ shares SSF contract, is equivalent to trading 1.25 NQ contracts with $1/contract commission. Therefore, it's obvious that a trader will be more profitable trading 1000 shares QQQ SSF, than NQ. Why should anyone continue trading NQ (= 0.8 QKQ) with 240% higher commission, instead of trading QQQ 1000 shares SSF for $1/contract? The only reason, so far, is volume. But when more NQ traders will realize that they'll be more profitable trading 1000 shares QQQ SSF, QKQ volume will sharply increase, and probably surpass NQ.
Do they both have the same typical bid/asked spread? Is the tax treatment of profits the same for both?
Assuming the spread is the equal to or less than the NQ. If it's more, trading the SSF may still not be as viable. Runningbear
the 1k share QQQ is on NQLX. http://www.nqlx.com If the b/a spread ever gets to 1 penny, then *maybe* it will compete with NQ -- but it's currently 10 cents or more.
It is an SSF. Therefore, it does not have 60/40 tax treatment. Why would you want to trade futures on Q's?
your argument falls apart when you consider daytrading margins for nq. Using daytrading margins of $1100 for nq a trader could trade 5 nq contracts for every 1000 QQQ ssf. Or am I missing something?
HEHEHE..... I knew it, there is another redneck besides myself on this board! How yall doin down in Texas? To answer your question. most are probably using IB. http://www.interactivebrokers.com/index.html: