You are right on the margin issues. However I need to put up cash only for the short position on the futures. The QQQ position is fully paid.
On a second thought the margin issue can be a big problem if QQQ continue to grow. My broker will sure request more collateral or will charge me for the...
Years ago I invested in a Nasdaq 100 ETF that has grown almost threefold. Now I'd like to rebalance, taking some fixed income to stem risk.
I'm not a US citizen, in my country there's a capital gain tax, whenever you sell a financial instrument you must pay 26% of the realized gain, or if you...
Sorry for my english, I'm not a native speaker.
Shorting the same amount of $ of an index future against an ETF on the same index you own, will earn the risk free rate?
I'm comparing this strategy against selling the index ETF and investing the proceedes in the 10 year T-Note.
Thanks