prop firms and etfs

Discussion in 'ETFs' started by janko, May 13, 2002.

  1. janko


    just curious, i know a lot of prop firms just trade nyse, i know some allow nasdaq as well, but i was wondering if these firms let you trade the etfs, like qqq? if so, do you only have to go through the exchanges or do they give you the ability to route to island and others? im particularly interested in worldco. thnx guys.
  2. might as well trade eminis, better moves, can short on down moves with out up ticks. QQQs spread are tighter and you need to adhear to the NYSE uptick rule. But yes, I did trade QQQ,SPY, at my Prop firm, However, not worth it, Eminis are far more profitalble for intraday moves.
  3. janko


    well i thought the etfs you can short on downtick, particulary the qqq's or does prop have something to do with it and you cant short on downtick? well i know most prop firms wont let you trade e-minies, like worldco, and if i want to get in with them but dont want to trade nyse, qqq's is probably the next possible thing. so just checking up on it. thnx
  4. You CAN short Spiders & Q's on a downtick.
  5. janko-
    here's the can trade them at worldco..but you can only trade them on island if you have Nasdaq clearance. so then you're stuck using the exchange which seems to be too slow for the qqq/spy....
    I don't work there..but thats the word I got from someone who does.
  6. Im at Wldc and , yes, you can trade the SPY, QQQ and DIA. And you can trade them through ECN's (ISLD, ARAC, INCA and REDI book) - same rates, no ECN charges.

    However, those stocks are on what is called a RESTRICTED LIST. This list is an on-going list that has abut 15 - 20 stocks that many of the new/"negative capital balance" traders can not trade. This means, if you are without capital or little capital, you will not be able to trade them. If you have capital, then you can do whatever you want.

    You can call them directly to ask them about htis policy but it is something that they are very serious about. The reason for this list is that these stocks (which include SPW, NOC, LLL, MER, GS, IBM... among others) are known for being very difficult to trade and the firm has lost lots of money net net from the traders trading them. In retrospect, it is a good policy. SPY is probably my worst stock ever.
  7. cashonly

    cashonly Bright Trading, LLC

    At Bright, we have a lot of people that trade the QQQ's, some trade the SPY's.

    They quite often put it out on REDI, ARCA, or ISLD as opposed to sending it to the floor. Sometimes they can buy on the bid that way when there's too much ahead on the floor. Sometimes they send to the floor to get price improvement.
  8. Bsulli


    My experience with most of the different ETF's with a few exceptions is low volume, spreads are generally wide to very wide and people will back away in a heartbeat.

    Been burned on DIA and SPY however have had better luck with the QQQ's simply because there is volume to get out with when the time comes to exit the trade.

    My two cents worth.
  9. Im not sure of this but if you use Island, you might be able to short on a downtick, I used the superdot system and never went to island. So, there might be a possiblility to short QQQ with out the uptick rule applying, via Island....but can not confirm from experience
  10. The ETF's are short sale exempt can short them on exchanges or ECN's. You dont need any special authorization to trade them at Wldc except the capital requirement I mentioned above.
    #10     May 13, 2002