trading the s&p futures vs SPY's

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

  1. bonds

    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

    ronblack

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

    Ron
     
  6. Surdo

    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

    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
     
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  10. bonds

    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