Trading closed-end funds?

Discussion in 'Trading' started by 99atlantic, May 6, 2006.

  1. Are closed-end funds a popular tool for speculation trading? I've always thought of them more-over as investment vehicles (i.e., mainly for holding purposes, not trading), but I'm curious if there's a lot out there who trade them.
  2. I trade index futures during the day and swing trade stocks and mostly hold ETFs (closed & index) for long term. I'd say most of them are quite illiquid compared to some of the large caps and therefore are not that great intraday trading candidates.
  3. I also did some reading around regarding this after reading this post, and he's absolutely correct.

    They don't have enough liquidity for intraday trading (or scalping as it were), and also, you don't have enough leverage to make it worthwhile (even if you do margin your account by 50%.

    However, they make GREAT Swing Trade holdings, if you've got an account that can trade'em and have a good swing trading methodology.

    (check QQQQ on Google and see what you can come up with)

    Best Regards,

  4. QQQQ doesn't have enough liquidity for intraday scalping?


    QQQQ is an exceptionally popular, very high volume, very high liquidity vehicle that is used extensively for intraday trading.
  5. Yea, most CEFs don't seem to have that much liquidity to justify intra-day trading, but I was thinking along the lines of daily trading.....although I don't think many professional firms base their stuff solely around daily bars, hehe.
  6. 99atlantic specifically asked for closed end ETFs, which exclude index funds like QQQ, which is open end.
  7. I wasn't quoting QQQQ as an example of an ETF that doesn't have enough liquity to day-trade (hey, trade it if you wanna, but the NASDAQ e-mini's offer more bang for the buck). I was quoting it as an example of ETF that's good for swing trading (there are a lot of swing trading methodologies listed on the web).

    Best Regards,