trading the SSO

Discussion in 'Trading' started by antincedo, Jan 23, 2009.

  1. trading the leveraged ETF of the S&P right now. how much of a difference is there between this and the ES?
  2. bump ba bump ba bump
  3. For a daytrade, not much difference. For a multi-day trade, more of a difference, basically when it goes against you for more than a day it compounds how much it goes against you.

    So, if you are doing some sort of averaging down strategy expecting a return to mean, definitely not the instrument to use.
  5. Can recommend the BGU/BGZ pair. SSO/SDS is all good but nowadays there is better options.
  6. des44


    Hi antincedo,

    May I ask in what context that you're asking you question? These are two different intruments and are quite different in many ways.

    The Ultra (2x) S&P ETF (SSO) is a favorite of mine to trade. I also trade the ES emini future. The big difference is the leverage and the other is the tax differences to consider (especially on the leveraged ETF). Unfortunately, I cannot answer tax questions.

    Both instruments have plenty of volume (liquidity) so pick your poison.

    Happy trading,

  7. Not sure if I understand this. How does it "compound" how much it goes against you??
  8. Thanagar


  9. Thanagar,

    Great link, mate. Thanks.