NQ vs QQQQ

Discussion in 'Index Futures' started by millionaire7, Mar 15, 2010.

  1. hi,

    How many points of move on NQ equal to the 10c move on QQQQ.

    Thanks
     
  2. 1) Homework time!
    2) The ratio of the QQQQ to the NDX is 1 to 40. The NQ has a multiplier of 20. Therefore, you need 800 shares of QQQQ to "hedge" one contract of NQ (ignoring dividends and carrying costs).
    3) A 10-cent per share move in the QQQQ produces an $80 fluctuation.
    4 To produce an $80 fluctuation in the NQ, that would be, $80 divide by $20 per "handle", a 4 handle move, i.e. from 1840.00 to 1844.00. You say "points", I say "handles". :cool: