What are some reasons to trade ETFs instead of futures?

Discussion in 'ETFs' started by snackly, Apr 17, 2009.

  1. True
     
    #21     May 4, 2009
  2. J-Trade

    J-Trade

    I have a robust ES trading system usnig Daily bars, holding trades up to about 2 weeks and building positions up to 10 contracts at a time. I don't have enough account capital spare for this, so I looked first at SPY. If I traded 100 share lots, then my max position size would be equivalent to just 2 x ES, which is very manageable. But then I looked at SPY options and the leveraged ETF, SSO.

    Assuming a simple long option strategy : ATM and a couple of months out, so low time decay, could someone clarify for me which is the better approach, please - SPY option or leveraged ETF ?

    Thanks,

    J.
     
    #22     Jun 15, 2009