Newbie Questions

Quote from MTE:luh3417,on why QQQQ verses NQ derivative

- Buying a stock is easy, anyone can do it. Buying a futures contract is more complicated, a futures contract expires so you need to roll it if you want to hold for longer term.

- Some people don't want leverage.

- Futures require a futures broker, while you can buy QQQQ in a regular stock brokerage account.
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Mighty points MTE.

Lots of good reasons why;
for example in starting, much better to lose 10% on QQQQ, than on NQ derivative:cool:

Same reason they start you out on a single shot .410;
& not a .458 Winchester magnum repeater elephant/big bear gun.

Both .40 caliber bore DIAmeter ;
assuredly both recoil different , noise different:cool:
 
I think the qqqq would have to go to zero for you to lose all your moola and there is no expiry whilst the nq would eat margin money and it does expire.
 
Quote from luh3417:

I see. Can anyone think of a reason why you'd use QQQQ ETF instead of NQ index future then?



Will investigate. I suppose they're liquid. I wonder if IB offers them and I wonder if I need any non-US-dollar accounts to trade them?
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You can get rebates in QQQ to cover your trading expenses... make your net > gross.
 
If you want the best 'bang for your buck' my reco is futures. For the active trader, I'd say futures provide many benefits over ETF's - for active trading purposes.
 
the beauty of futures is that they move in 1\4 or 1\2 increments, so it's like the old days where you could scoop several bucks in a single move.

And you dont pay SEC fees... that's a mayor pain if you're trading SPY.. [or anything else priced over 50$ for that matter] the SEC will eat you alive.
 
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