Margin Requirement

Discussion in 'Retail Brokers' started by victsavio, May 21, 2018.

  1. So I suppose being that different it would probably ruin using an SPY strategy to the /ES???
     
    #11     May 21, 2018
  2. rb7

    rb7

    If you have a trading strategy that's working on the SPY, it would probably works also for the ES. Same underlying. Same market driven. A simple backtest would confirm this.
     
    #12     May 21, 2018
  3. Robert Morse

    Robert Morse Sponsor

    I do not know what your strategy is. I don't know the size of your account or your ability to learn futures, which are bigger than the ETF so there is less scaling. I don't know where you live or their tax treatment of SPY vs Futures.

    I'm only suggesting that you can get the leverage you are asking for with ES futures and it might be a better solution.
     
    #13     May 21, 2018
  4. victsavio

    victsavio

    Impossible to backtest as I don't have a static strategy. I trade accordingly to the market. Every instrument is unique...I am skeptic trading in the same way something that is even similar
     
    #14     May 21, 2018
  5. pipeguy

    pipeguy


    Are you talking about US based brokers, or offshore is also ok?
     
    #15     May 21, 2018
  6. victsavio

    victsavio

    offshore is ok , thanks
     
    #16     May 21, 2018
  7. That’s what I was getting at. Any trading strategy that is applicable to SPY would be applicable to /ES. Sure there are subtle differences. For futures 24hr market, expiration’s, knowing the monthly symbols instead of just knowing the main symbol you’ll have to add the month and year. If one has created a profitable strategy I’m sure they’re capable of learning the differences.

    I wouldn’t even consider SPY over ES especially in the US. You’re subject to many more regulations. Pattern day trader, wash sales, worse tax treatment etc. Sure Rob could have pointed out the additional differences. But in the end if you can make it with SPY I’m sure you can with ES. That’s was my intent. Seems though that OP prefers going to other brokers over trading Futures though.
     
    #17     May 22, 2018
  8. victsavio

    victsavio

    I am a day trader since 90% of my positions are closed in the same day. The other 10% in the following day. I don t know about taxation in US but to me it doesn t make difference. By the way I m not saying that is impossible, but it would be something different I think and I should go indeed through a testing period first ....just not willing
     
    #18     May 22, 2018
  9. Robert Morse

    Robert Morse Sponsor

    The IRS subjects SPY to the wash sale rule while ES is a 1256 contract and not subject to wash sales.
    https://www.sec.gov/answers/wash.htm
    https://www.irs.gov/pub/irs-pdf/f6781.pdf

    Mark-to-Market Rules Under these rules, each section 1256 contract held at year end is treated as if it were sold at fair market value (FMV) on the last business day of the tax year. The wash sale rules don’t apply. If your section 1256 contracts produce capital gain or loss, gains or losses on section 1256 contracts open at the end of the year, or terminated during the year, are treated as 60% long term and 40% short term, regardless of how long the contracts were held. The mark-to-market rules don’t apply if you properly and timely identified a section 1256 contract as a hedge.
     
    #19     May 22, 2018
  10. victsavio

    victsavio

    Today another 1,2$ not realized on spy. Very BAD !:mad:
     
    #20     May 22, 2018