trading the s&p futures vs SPY's

Discussion in 'Trading' started by bonds, Jul 28, 2007.

  1. bonds


    what are the advantages to trading the s&p futures as opposed to the SPY's besides the leverage?
  2. 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.
  3. I guess the spread in the futs would be a disadvantage.
  4. If you add liquidity in SPY you get an ECN rebate, thus lowering your costs
  5. ronblack


    Maybe this is the cause of the recent plunge. Everyone is trying to get a rebate :)

  6. Surdo


    It's obvious you have no clue what "adding liquidity" means.
  7. what about time value in ES?
    How it's counted?
    As I understand ES depreciates overtime
    So for longterm hold SPY is better
  8. Surdo


    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.

    el surrrrrrrrdo
  10. bonds


    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.
    #10     Jul 28, 2007