1000 QQQ SSF trading is better than NQ.

Discussion in 'Financial Futures' started by Fohat, Nov 26, 2002.

  1. Fohat


    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:

    | |
    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.
  2. Aaron


    Do they both have the same typical bid/asked spread?

    Is the tax treatment of profits the same for both?
  3. 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.

  4. Bullet


    Who are yall trading ssf through??
  5. What exchange are the SSFs traded on?

  6. 3dog


    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.
  7. cheeks


    It is an SSF. Therefore, it does not have 60/40 tax treatment.

    Why would you want to trade futures on Q's?
  8. Brandonf

    Brandonf ET Sponsor


    SSFs are taxxed as stocks. They do not have 60/40 tax treatment.

  9. 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?
  10. cheeks



    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.

    #10     Nov 26, 2002