ES or SPY?

Discussion in 'Index Futures' started by smilingsynic, Jun 21, 2007.

  1. For those who traded actively--and I mean day trading--what do you think is a better vehicle (in general): ES (e-mini futures) or SPY (ETF)?

    Commissions at IB are comparable: 500 shares of SPY would run a bit more than 1 ES. But the penny spread of SPY would translate to a 1/10 spread on ES, and we all know that ES trades in quarters.

    Liquidity would not be an issue for me, as a retail trader whose account is in the 6 digits, and who would consider 4 ES a big position.

    I was just curious. Thank you.
  2. Since there's quite a few futures traders on the board, I'm going to guess you will hear that the ES is better.

    And I agree.

    I basically view the future as a leveraged play on the SPY or S&P. If I want conservative, SPY is the way to go. With the ES you can control much more for much less. Of course, that can be dangerous in the wrong hands.
  3. CONR


    Taxes favor futures.