1000 QQQ SSF trading is better than NQ.

[Fohat]

The 1k shares QQQ Single Stock Futures(SSF) contract(Sumbol QKQ), released recently, is potentially a much better trading instrument than the Nadaq 100 Emini futures NQ.

Lets compare them:

________________QKQ_______________NQ
| |
Commissions:_____$1/contract___vs.____$2.40 / contract
Underlying value:__1000 QQQ____vs.____800 QQQ shares


Therefore, trading one 1000 QQQ shares SSF contract, is equivalent to trading 1.25 NQ contracts with $1/contract commission.

Therefore, it's obvious that a trader will be more profitable trading 1000 shares QQQ SSF, than NQ.

Why should anyone continue trading NQ (= 0.8 QKQ) with 240% higher commission, instead of trading QQQ 1000 shares SSF for $1/contract?

The only reason, so far, is volume. But when more NQ traders will realize that they'll be more profitable trading 1000 shares QQQ SSF, QKQ volume will sharply increase, and probably surpass NQ.

 

[Aaron]

Do they both have the same typical bid/asked spread?

Is the tax treatment of profits the same for both?

 

[Runningbear]

Assuming the spread is the equal to or less than the NQ. If it's more, trading the SSF may still not be as viable.

Runningbear

 

[Bullet]

Who are yall trading ssf through??

 

[Runningbear]

What exchange are the SSFs traded on?

Runningbear

 

[3dog]

the 1k share QQQ is on NQLX. http://www.nqlx.com

If the b/a spread ever gets to 1 penny, then *maybe* it will compete with NQ -- but it's currently 10 cents or more.

 

[cheeks]

Quote from Fohat:

The 1k shares QQQ Single Stock Futures(SSF) contract(Sumbol QKQ), The only reason, so far, is volume. But when more NQ traders will realize that they'll be more profitable trading 1000 shares QQQ SSF, QKQ volume will sharply increase, and probably surpass NQ.

It is an SSF. Therefore, it does not have 60/40 tax treatment.

Why would you want to trade futures on Q's?

 

[Brandonf]

Quote from Aaron:

Do they both have the same typical bid/asked spread?

Is the tax treatment of profits the same for both?

\

SSFs are taxxed as stocks. They do not have 60/40 tax treatment.

Brandon

 

[Cdntrader]

Quote from Fohat:

The 1k shares QQQ Single Stock Futures(SSF) contract(Sumbol QKQ), released recently, is potentially a much better trading instrument than the Nadaq 100 Emini futures NQ.

Lets compare them:

________________QKQ_______________NQ
| |
Commissions:_____$1/contract___vs.____$2.40 / contract
Underlying value:__1000 QQQ____vs.____800 QQQ shares


Therefore, trading one 1000 QQQ shares SSF contract, is equivalent to trading 1.25 NQ contracts with $1/contract commission.

Therefore, it's obvious that a trader will be more profitable trading 1000 shares QQQ SSF, than NQ.

Why should anyone continue trading NQ (= 0.8 QKQ) with 240% higher commission, instead of trading QQQ 1000 shares SSF for $1/contract?

The only reason, so far, is volume. But when more NQ traders will realize that they'll be more profitable trading 1000 shares QQQ SSF, QKQ volume will sharply increase, and probably surpass NQ.

your argument falls apart when you consider daytrading margins for nq. Using daytrading margins of $1100 for nq a trader could trade 5 nq contracts for every 1000 QQQ ssf.


Or am I missing something?

 

[cheeks]

Quote from Bullet:

Who are yall trading ssf through??

HEHEHE.....


I knew it, there is another redneck besides myself on this board!

How yall doin down in Texas?


To answer your question. most are probably using IB.

http://www.interactivebrokers.com/index.html: