are the movements of futures more violent than the stocks

Discussion in 'Technical Analysis' started by 0008, Feb 14, 2008.

  1. 0008

    0008

    I get a feeling that the candlesticks of index futures e.g. NQ , ES have more long shadows than that of the QQQQ and SPY. Are the movements of futures more violent than that of the stocks? :confused:
     
  2. For one thing leverage, this may make small movements more violent.

    Its pretty hard to for index ETF shareholders to have margin calls, but with futures it happens quite often.

    Besides, futures may price-in expected index movements in their premiums, be it positive or negative.
     
  3. efutures

    efutures

    Futures, per say, do not necessarily move a lot more than securities. In fact, the DOW and S&P futures tend to move in a pretty close tandem. The big difference is the leverage associated with futures. In futures, you may be able to control $100,000 worth of a currency by posting a mere $2,430 margin. Therefore, relatively small moves can mean big profits or losses.
     
  4. Surdo

    Surdo

    CRGARCIA:

    Where do you make this stuff up from?
    ES and NQ are based on the same underlying as SPY and QQQQ, and generally move exactly the same percentage unless the premium is out of line, then arbs fix that real quick.
     
  5. ========================
    In that sense;
    yes moves are more violent.Easier to do more violence to an account in futures

    :cool: