Spyders or futures

S

silk

If you want to daytrade the s&p, is there any advantage to trading the futures versus trading SPY. Assume i don't care about leverage as i work as prop trader.

My maximum trade will be about 10k shares worth of SPY. (a little shy of $1 million).

Would i be at a disadvantage trading SPY versus those that trade the futures?? What are advantages if any of futures other than the leverage? Are the fills better? Never traded futures myself.
 
Originally posted by silk
If you want to daytrade the s&p, is there any advantage to trading the futures versus trading SPY. Assume i don't care about leverage as i work as prop trader.

My maximum trade will be about 10k shares worth of SPY. (a little shy of $1 million).

Would i be at a disadvantage trading SPY versus those that trade the futures?? What are advantages if any of futures other than the leverage? Are the fills better? Never traded futures myself.
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Never traded the SPY, but with the e-mini you have low transaction costs, tax advantages of futures, liquidity and almost instant fills.
 
Go to www.cme.com and click on the free Emini course link under the "Chicago Mercantile Exchange Free Online Seminars ". This provides you with an audio/video presentation on trading the Eminis. Your questions may be answered there.
 
With futures you're capped at the 28% blended capital gains tax rate. If you start making serious bucks, this becomes a big deal.
This becomes moot, however, if you're paid on a W-2. Insist on a 1099, or walk.
 
There are a number of advantages to trading the futures vs the Spyders. Anyone who actively trades the QQQ/SPY should very seriously consider why they trade the stock trusts vs the futures contract. The transactions costs are lower in the futures, the spreads are smaller, the liquidity is higher and there is a huge tax benefit. If you have two traders, one makes $9000 trading the NQ and the other makes $10,000 trading the QQQ (after commissions) the guy making $9000 in the NQ will end up having made about $1000 more after taxes then the guy who technically was a "better" trader having made more money. Also, your accountant wont have to work nearly as hard if you trade futs vs stocks since all of your gains and losses are reported as one line on your 1040.

Brandon
 
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