trading S&P index, need advice please (ES or SPY)

Discussion in 'Index Futures' started by jasonjm, Dec 25, 2005.

  1. jasonjm


    Hey all, I am a 6 year forex veteran, I would like to trade the S&P index....

    I have been reading and it seems like I have 2 choices

    1) trade ES futures (emini)
    2) trade SPY through regular equities broker

    I will be trading a decent account but each trade will be targetting 5 to 10 full points on the S&P, and trades WILL very often run into days sometimes even weeks, so the max trades would probably not be that much, I calculate on emini S&P I would trade about 30-40 roundtrip trades per 100k capital per month, and I would probably start out with 100k for at least the first 6 months

    I am also concerned about "gap" ups and downs outside market hours..... could mess up my entries and exits a bit.... do emini futures trade efficiently outside of normal market hours? or is it a nightmare? (i would only try close positions for profit in AH, i dont think risking new entries is worth it in after hours, or is it??)

    Is the SPY liquid enough to be traded in extended hours? is that worth it?

    Does the S&P index even move after hours? or does it only really move pre-market open when major news comes out like Non Farm payrolls and junk like that

    Tryna figure out which will be more cost effective, which will be better execution, which will have less fees overall etc etc also fees for holding positions for days to weeks have to be factored in, etc etc

    Any pros wanna give me some tips and anwers I obviously dont know?

    thanks in advance
  2. jasonjm


    I guess one thing i forgot to mention is that I do know of the preferable tax implications for ES and that may be the most major reason to choose ES I guess??

    do any of the brokers pay you interest on cash parked in your account?
  3. Who do you use for data/charting?
  4. jasonjm


    I dont need any charting, and the only data I will need is end of day close for S&P, 4pm EST
  5. well i like to play with the spy
    even do it involve a lot of leverage
  6. Without question.........including tax and slippage and use of capital, along with 23:45 access.......ES Futures.
  7. Ebo


    The word "Parking" is really not used.

    If you want T Bill interest, any Futures broker will allow you to use 95% of a T Bill as a performance Bond.

    Tax treatment and commission are superior trading futures IMHO.

    Good Luck.
  8. jasonjm


    which brokers do you all recommend I check out for trading 30-40 round trip per month?