Trading Overnight with MES

dcwriter2 said:
I've been trading SPY over night, when it's above the 20D MA, with some success, but the inability to place a stop loss overnight keeps me up. I'm wondering if trading 2 MES for every 100 shares of SPY would alleviate this worry, and if so what are the caveats, as I've never traded a micro contract.
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Who is your broker? You can place a stop/limit overnight for SPY.

Also, I assume you are either claiming trader tax status and are aware of the wash sale rule with regard to trading SPY.

MES is much better suited for short term trading than SPY for tax reasons.
 
You mean that if I own SPY in a Schwab account and the SP plunges at 3 a.m. I can executive a trade at 3 P.M. with a stop order and get out of the position before it falls further? That's a new one on me. And I'm familiar with the wash sale rule on year end trading, but not as it specifically applies to SPY. Educate me.
 
Depending on your stock broker. Many offer overnight trading on the more liquid ETFs like SPY. So yes, you would be able to execute a stop at 3am, however the 'before it falls further' would be up in the air as there might be some slippage between your stop and your fill price if its a thin and fast market at 3am.
 
Ironbeam said:
Depending on your stock broker. Many offer overnight trading on the more liquid ETFs like SPY. So yes, you would be able to execute a stop at 3am, however the 'before it falls further' would be up in the air as there might be some slippage between your stop and your fill price if its a thin and fast market at 3am.
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Gee never heard of etfs trading outside of market or extended or premarital market hours anywhere. What brokers do this?
 
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