trading the s&p futures vs SPY's

Quote from bonds:

what are the advantages to trading the s&p futures as opposed to the SPY's besides the leverage?
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Advantageous tax treatment, overnight liquidity, there's no vig on overnight margin trades.

Commission depends on your situation, I would assume ES is better for retail unless you have some plan that lets you move huge size in SPY for a flat fee.
 
Quote from giggollo:

If you add liquidity in SPY you get an ECN rebate, thus lowering your costs
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Maybe this is the cause of the recent plunge. Everyone is trying to get a rebate :)

Ron
 
Quote from ronblack:

Maybe this is the cause of the recent plunge. Everyone is trying to get a rebate :)

Ron
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It's obvious you have no clue what "adding liquidity" means.
 
Are you an investor or a trader?

ES approaches the value of the cash the closer you get to expiration. I never really think about dividends as a shorter term trader. If you are accumulating a position for a long term investment, yes SPY makes more sense. ES has to be rolled over every 4 months.

el surrrrrrrrdo
 
Quote from kashirin:

I may hold for a week or 2. As I understand ES loses around 0.25 point per day.
Not sure but probably Fed rate is included.

For my skills using leverage is too dangerous and day trading is too emotional. So SPY is a better choice for me
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im a trader, from a commission standpoint i'd definately better off trading the spy's, even negating the ecn charges/rebates.

im leveraged pretty good right now so i thnik ill stick with spy's unless leverage becomes a limiting factor.
 
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