Trading E-Minis / SPDRS or Stocks

Discussion in 'Trading' started by gr8stock, Apr 10, 2003.

  1. thank you for clearing that up.
     
    #11     Apr 11, 2003
  2. JT47319

    JT47319

    Well, there is some dividend capture arbitrage. When the a stock drops due to ex-dividend, buying pressure could conceivably raise the stock price back up to its original amount. Some people might think the stock is cheap or don't care about dividends. So conceivably, but not entirely too likely, one might receive both dividend and capital gains.
     
    #12     Apr 11, 2003
  3. JT47319,

    You have a valid point that probably applies to individual stocks. However, ETFs are an entirely different animal because they are synthetic instruments that follow an underlying index, regardless of buying or selling pressure on the individual ETF. That is the same reason why illiquid ETFs are tradeable; the bid/ask prices will closely correlate to the fair value of the underlying index or stocks that comprise the ETF, regardless of supply or demand.

    Deron


     
    #13     Apr 11, 2003
  4. TG

    TG

    Traded futures this week, decided to give it a try for a week and forget about individual stocks. Yikes, I'm happy and so is my accountant. Can't figure why I ever wasted my time with stocks. Talk about liquid, tight markets and tradable charts. I'll never go back.
     
    #14     Apr 11, 2003
  5. Is it true that the person who buys and hold SPYDRs receive a dividend? How much ?
     
    #15     Apr 12, 2003
  6. EMINI the winner without question. while the other stuff mentioned is good i get instant execution without slippage trading eminis. critical importance to a scalper like me.
     
    #16     Apr 12, 2003