Discussion in 'Financial Futures' started by ewile, Dec 12, 2002.
Does IB have market on close orders available for SSF's?
Still looking for someone to tell me why they are even trading these suckers.
Because they're new and you will sound cool at christmas parties telling people you trade SSFs.
MOC is not a function supported by the SSF exchanges and thus there is no MOC.
Why trade them....
Here's a reason for hedge funds -- Margin. The cost of capitial is large when holding a long term position. If you trade on margin with cash you pay interest, if you put up full cash there is an opportunity of capital. Buy a longer term future, put up 20% and the interest savings can be substantial.
I'm aware of some of the advantages for long term investors, but isn't that interest savings already built into the price of the SSF (or should be?). Something that obvious is rarely mispriced.
I still fail to see the appeal , especially in liquid stocks, especially for daytrading. I'm waiting for the baskets to trade, maybe there's something there. Or some illiquid pos that can be shorted on a downtick. Till then, SSF's are BoRInG.
Yep ......real big saving with Interest rates right now.
I could understand when they are at 15% + or so .....but now?
Financing costs and cost of capital are factors. If you have to finance say 800K out of a million dollar position the broker call rate is much more than any difference in the spread between the underlying and future.
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