S savage Oct 24, 2008 #1 I am interested in your opinions. Does Index Trading (i.e. futures, spy, qqq, dia, etc.) sabotage the stock market and/or individual stocks that should trade on their own individual merits? What would life be like without index trading?
I am interested in your opinions. Does Index Trading (i.e. futures, spy, qqq, dia, etc.) sabotage the stock market and/or individual stocks that should trade on their own individual merits? What would life be like without index trading?
G gnome Oct 24, 2008 #2 Index trading is neutral. It's virtually the same as buying and selling a "basket"..
O oktiri Oct 24, 2008 #3 Quote from savage: What would life be like without index trading? More... Someone would invent index trading. What other market instrument are you going to blame for a housing bubble, a credit binge and massive fraud ?
Quote from savage: What would life be like without index trading? More... Someone would invent index trading. What other market instrument are you going to blame for a housing bubble, a credit binge and massive fraud ?
S savage Oct 24, 2008 #4 Quote from gnome: Index trading is neutral. It's virtually the same as buying and selling a "basket".. More... I don't think that is true because traders arbitrage the individual stocks against the index values.
Quote from gnome: Index trading is neutral. It's virtually the same as buying and selling a "basket".. More... I don't think that is true because traders arbitrage the individual stocks against the index values.
G gnome Oct 24, 2008 #5 Quote from savage: I don't think that is true because traders arbitrage the individual stocks against the index values. More... The benefit to arbing is to lock in the price differential.. Do you think an arb could/would try to force one side to "widen the spread so he might lock it in"?
Quote from savage: I don't think that is true because traders arbitrage the individual stocks against the index values. More... The benefit to arbing is to lock in the price differential.. Do you think an arb could/would try to force one side to "widen the spread so he might lock it in"?
