Discussion in 'Trading' started by bonds, Jul 28, 2007.
what are the advantages to trading the s&p futures as opposed to the SPY's besides the leverage?
Advantageous tax treatment, overnight liquidity, there's no vig on overnight margin trades.
Commission depends on your situation, I would assume ES is better for retail unless you have some plan that lets you move huge size in SPY for a flat fee.
I guess the spread in the futs would be a disadvantage.
If you add liquidity in SPY you get an ECN rebate, thus lowering your costs
Maybe this is the cause of the recent plunge. Everyone is trying to get a rebate
It's obvious you have no clue what "adding liquidity" means.
what about time value in ES?
How it's counted?
As I understand ES depreciates overtime
So for longterm hold SPY is better
Are you an investor or a trader?
ES approaches the value of the cash the closer you get to expiration. I never really think about dividends as a shorter term trader. If you are accumulating a position for a long term investment, yes SPY makes more sense. ES has to be rolled over every 4 months.
im a trader, from a commission standpoint i'd definately better off trading the spy's, even negating the ecn charges/rebates.
im leveraged pretty good right now so i thnik ill stick with spy's unless leverage becomes a limiting factor.
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