QQQQ vs Futures

W

windsorphd

Does anyone exclusively trade ETFs, such as the QQQQ or IVV, as opposed to s&p futures? Obviously the leveraging is much greater with futures. But are there other differences?

Is QQQQ or IVV traded on NYSE? Is it hybrid or specialist controlled? Can u tape read? Is this an advantage over futures
 
Can u tape read? Is this an advantage over futures ?

Advantage over future are -

All future brokers are FCM (trade from proprietary account
against clients interess)

IWM,QQQQ,SPY,DIA can be traded from pure agent of
principal (TOS,MBT,Ameritrade,Optionsxpress,RML)

Daytrading margin until 25% (4:1 buying power)

If not enough IWM have penny options with margin
40-120 and spread some 1.03-1.06

All IWM ,QQQQ,SPY ,DIA traded on multiple ECN
and all options on this ETF alsov on multiple exchange's


SPX and OEXX options traded only on CBOE ,it is more risk

Your respectfully
 
Quote from ssss:

Advantage over future are -

All future brokers are FCM (trade from proprietary account
against clients interess)

Daytrading margin until 25% (4:1 buying power)

More...

1. Futures Brokers could give a rat's ass what you are trading in NQ, they are so liquid, I doubt they are taking the other side of your 5 lots!

2. One NQ Nasdaq100 futures contract has a notional value of $35,810 and requires $3250 Performance Bond, less at some Brokers, intraday. This equates to a 9% margin. This also requires under a $25K Capital requirement.

3. You neglected to mention the favorable 60/40 Tax treatment futures receive, not to mention a heck of a lot easier to report Year End!

good trading,

el surdo

PS: I almost forgot NQ trades 23/5 hours a day!
 
1. Futures Brokers could give a rat's ass what you are trading in NQ, they are so liquid, I doubt they are taking the other side of your 5 lots!
--------------------------------------------------
It can not be another ... In this or another time
this kind of broker paly against any or multiple he's clients .

Author is multiple time's with complaint'S by SEC,Court,Swiss Court,Germany Court ,Germany SEC .

Last example from author experience - Swiss broker stated ,that he have made techical error (shut down system in time of great volatility for 8 hours)
but will not pay.

If any operator alsov with small account(2000$) have perfomance 300%-500% by any month , he would closely monitored not only by broker but from SEC ,CFTC &

If broker is market maker or traded against clients interess(that is not forbidden) ,he used this information
about top performer's and tryed to find different
counter arguments -as trading tactic,techhical, legal .



Your respectfully
 
Quote from windsorphd:

Does anyone exclusively trade ETFs, such as the QQQQ or IVV, as opposed to s&p futures? Obviously the leveraging is much greater with futures. But are there other differences?

Is QQQQ or IVV traded on NYSE? Is it hybrid or specialist controlled? Can u tape read? Is this an advantage over futures
More...

I suppose that if one wanted to get his/her feet wet with daytrading, it could be done with QQQQ. The Qs are so liquid that you could easily trade in lots of 100 shares with instant fills and more scalable risk than 1 futures contract. Plus the Qs are nice because there's no "uptick" rule for shorting.

If you're doing this in an IRA (no shorting allowed), you could use QID as a proxy for shorting the Qs. You just go long QID, so you're always long-only.

One drawback with all this of course is the pattern day trader rule. There's no PDT rule for futures (yet). For QQQQ and QID, PDT rules would apply.

Other than that, it's a kinder/gentler way to learn daytrading in my opinion.
 
Quote from stevegee58:

I suppose that if one wanted to get his/her feet wet with daytrading, it could be done with QQQQ. The Qs are so liquid that you could easily trade in lots of 100 shares with instant fills and more scalable risk than 1 futures contract. Plus the Qs are nice because there's no "uptick" rule for shorting.

If you're doing this in an IRA (no shorting allowed), you could use QID as a proxy for shorting the Qs. You just go long QID, so you're always long-only.

One drawback with all this of course is the pattern day trader rule. There's no PDT rule for futures (yet). For QQQQ and QID, PDT rules would apply.

Other than that, it's a kinder/gentler way to learn daytrading in my opinion.
More...

Good points. I am starting to get more serious about my own trading (not daytrading yet), and I recently started trading index ETFs a bit (I really like all of the newish double beta & double beta inverse ETFs). The one thing that I've really noticed thus far is that trading index ETFs tends to hurt a lot less if you are wrong, compared to individual stocks.
 
I started trading QQQQ just recently. All I say is that fills are instant on 1000 shares, at least my experience(at least in the morning). No big deal to short it, very smooth. I trade mini Russell and qqqq won't compare a bit on the fast moves ER2 does. I am trading the cubes as intraday kinda part-time to make a couple of bucks on the side. So far so good. Of course I won't switch from russell to stocks, but at least is giving me what I want

I did a short backtest on the cubes (6 months) although I am allergic to indicators, I notice that RSI-14 works very good on the cubes, if you're looking to short/overbought and long/oversold. Of course it's just my opinion, you trade with whatever fits your bill.

Will be interesting you you can throw some puts/calls and create some leverage to ride this baby intraday. Just a though I don't know much about options

Peace
 
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