I'm a new trader and need some advice. I've noticed that the NQ and QQQ always differ a bit in percent price change at any given point during the day. In other words, their percent change on the day always fluctuates between 0-0.20% difference. Is it possible to arbitrage this difference since the price will virtually always go back to the 0% difference. Thanks.
Arbitrage the QQQ and NQ
- Thread starter dpg2020
- Start date
Quote from GreenDog:
to be swinging a pretty big line to effectively arb this spread. I kicked this idea around several years ago -- but it's just like the big players arbing the spoo vs cash. Unless you're trading multi-millions and you have sophisticated computer execution -- it's 100% wasted time.
dog
I know some smaller traders still doing it; problem is the edge is now thin ...
The main problem might be with getting QQQ executed at the last price you see. I'm not following QQQ anymore but, I used to follow it with the Island order book where it had very good liquidy. Sometimes, the last trade I see on Island was almost $0.10 away from data feed's last trade. Then once in a while block trades would hit the tape away from the bid/ask.
I remember reading on IB's message boards that people were complaining about QQQs market getting crossed and not get executed even if they hit the bid/ask.
I remember reading on IB's message boards that people were complaining about QQQs market getting crossed and not get executed even if they hit the bid/ask.