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trading the SSO
- Thread starter antincedo
- Start date
For a daytrade, not much difference. For a multi-day trade, more of a difference, basically when it goes against you for more than a day it compounds how much it goes against you.
So, if you are doing some sort of averaging down strategy expecting a return to mean, definitely not the instrument to use.
So, if you are doing some sort of averaging down strategy expecting a return to mean, definitely not the instrument to use.
Quote from Susannah:
For a daytrade, not much difference. For a multi-day trade, more of a difference, basically when it goes against you for more than a day it compounds how much it goes against you.
So, if you are doing some sort of multi-day averaging down strategy expecting a return to mean, definitely not the instrument to use.
Can recommend the BGU/BGZ pair. SSO/SDS is all good but nowadays there is better options.
Quote from antincedo:
trading the leveraged ETF of the S&P right now. how much of a difference is there between this and the ES?
Hi antincedo,
May I ask in what context that you're asking you question? These are two different intruments and are quite different in many ways.
The Ultra (2x) S&P ETF (SSO) is a favorite of mine to trade. I also trade the ES emini future. The big difference is the leverage and the other is the tax differences to consider (especially on the leveraged ETF). Unfortunately, I cannot answer tax questions.
Both instruments have plenty of volume (liquidity) so pick your poison.
Happy trading,
d-
Quote from Susannah:
For a daytrade, not much difference. For a multi-day trade, more of a difference, basically when it goes against you for more than a day it compounds how much it goes against you.
So, if you are doing some sort of averaging down strategy expecting a return to mean, definitely not the instrument to use.
Not sure if I understand this. How does it "compound" how much it goes against you??