INDEX ETFs VS INDEX FUTURES

Discussion in 'ETFs' started by conbar, Oct 27, 2005.

  1. conbar

    conbar

  2. domi93

    domi93

  3. conbar

    conbar

    thanx domi93!

    so, we got distinction#1: AMOUNT OF CAPITAL REQUIRED
    When compared to EN, QQQQ requires higher initial capital for the same potential profit. (let's not go on about losses and asume that the trader is professional enough not to blow a small futures account while taking advantage of wild leverage )
    So from the standpoint of this super trader, EN offers much higher profits on much smaller account when compared to QQQQ. EN earnes a credit on this one.

    other distinctions?

    QQQQ = no uptick rule
    EN = no uptick rule

    how are executions guys?
    EN = press the button and get filled with no problem - that's what I heard about futures. Let's not consider slippage as the problem.
    how about QQQQ? (Let's assume I dont use smartrouters and direct my market orders straight to ARCA - nice liquid place). Will I get filled a position of 100000 shares with no problem in a matter of seconds just like with the equivalent position of EN? (I consider daytrading)