Discussion in 'Trading' started by matador04, Dec 9, 2009.

  1. Any major reason why one would want to trade QQQQ over NQ? You get better tax treatment with NQ than you do with QQQQ. Are their correlations ever below .99? Is one slightly more volatile than the other??

  2. I can think of a couple:

    1) Many IRAs/401ks don't allow futures trading.
    2) You can start out trading live with very small lots and scale up as much as you want. This way you can learn and experience the psychology of live trading without having to eat the $20/point of the NQ. Nice transition between paper to live to the actual NQ.
  3. Exactly, and the lower cost of carry.

    Q's/NQ's are poised for a rally...very soon.
  4. Do we have to deal with wash sales with NQ?
  5. Nope, nor do you report every transaction on your taxes.
  6. Thanks for the points.

    Do the futures ever trade at a deep discount or premium to q's? Sorry for the dumb questions, but I need to know.
  7. Sure. Opening gaps.
  8. My gut feeling says not enough to be an issue for "normal folks" such as us.
    I would think any discrepancy would bring in the arb folks.
    Just wagering a guess, though.
  9. that's what I figured, but thought I'd ask anyway...

    thx all
  10. Good point on the opening gap...that was a "forest for the trees" kind of moment, there. :)
    I'm assuming there is not much of a divergence during the normal US trading hours.
    #10     Dec 10, 2009