For those who have or do trade OneChicago SSF's, how's the execution for the majority of the top ETF's and Stocks based on average daily volume. This would be for daily and monthly profit strategie. The bid/ask difference is not a huge deal. I like round numbers, so if hypothetically Alcoa, Gold Spiders or any other popular high volume daily stocks are trading currently at 100, the bid/ask was 99.5/100.5, how long can it sit there even if we have to go so far as buying the Ask and Selling the vid? On a side note, are there options traded for most SSF's, that have that lower margins compared to standard stock option margin. Thanks
I trade a lot of equity SSFs, mainly on more expensive stocks with large volumes. On these execution is quick if you hit the bid or ask, if you go between the spread , you will sit there until market to it. Do not know of any options issued for SSF, but have used a few simple strategies with equity options on underlying. Hope this helps.
Intraday or short term, you'll be frustrated with them. They don't trade like stocks in terms of fills, and often don't precisely track the underlying. Longer term you shouldn't have big problems.
For one of my fund switching strategies I trade only once per week (mondays) a few select SSFs of ishares etfs through IB long side only. To check the viability of trading SSFs, I did and still do divide my trading amount for each underlying in two parts: One to go via SSFs, the second for trading the underlying. So I order long 100 shrs of EWZ and go long 1 ctrct EWZ1C at the very same moment. Closing also at same moment. Comparing the results SSFs prooved to be profitable at lower margin. For me. Just wished they had a few more to complete a broad multi asset portfolio. Even IEV and DBA are missing. Regards Hittfeld