mini Futures and their ETFs

Discussion in 'ETFs' started by journeyman, Feb 2, 2007.

  1. Does anyone have any solid knowledge on the way that the mini futures contracts relate to the actual ETFs in the main day trading sessions?

    I mean, do they move in tandom. like exact mirrors? Is there a lot of arbitrage at divergence points?

    As an example, could you trade CBOT dow minis using a DIA or even INDU chart?

    Any thoughts on the actual trading day relationship would be much appreciated especially from traders with experience in the area.
  2. Take a look for yourself:


    If you bought at the low, sold at the high, could move 500 shares of SPY without partial fills, and got lucky, you might make $20 a pop.

    In reality though, the odds of this are pretty low.

    That being said, there was just a long thread on the "premium" symbol that most trading systems have which shows you the amount the futures are trading over the cash. This will vary quite a bit during the day.

    Here's what it looks like today:


    So, the answer to your question is probably "no". If you traded the futures contract using the cash index, the difference between it and the futures contract could be a full point (and I've seen more).