Shorting SPY vs. buying SH

Discussion in 'Automated Trading' started by chvid, Mar 20, 2008.

  1. chvid


    Hi there.

    I have been running an ATS for while using to SPY to buy the S&P500 and SH to short it thru a margin account at Interactive Brokers.

    I am wondering how simply selling short SPY would be any different wrt. costs?

    I have no experience in using short selling on a margin account - is there anything I should be aware of?

    (The advantage would be that I could use the same model for other assets - i.e. silver or the deutsche bank commidity index (dbc) for which there do not exist a short fund.)
  2. man


  3. chvid


    Futures are too leveraged for what I do.

    The exposure futures would give to the underlying is too big compared for the time horizon and the account size I have.