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futures vs etfs


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#1 vitaminm

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Posted 09 January 2008 - 04:52 PM

Which trade is more stressful? 1es=500 shares/spy=250/sso=250sds 1ym=500 shares/dia=250/ddm=250dxd one may compare the trading cost.

Edited by vitaminm, 09 January 2008 - 05:02 PM.

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#2 dcengr

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Posted 09 January 2008 - 11:02 PM

Spreads are better on ETFs too. Then there's tax advantages of futures.. Trading costs, depends on how you trade. If you want to use algorithmic trading, then you pay per contract. If you want to do limit trading, then ETFs are probably cheaper as you can trade huge amounts for like $8 plus .01/share. Best to have as many brokerages as possible. I don't trust my own brokers to game my position, so use one account to hedge the other as necessary. Plus its safer from security and fraud purposes.
Qui custodiet ipsos custodes?

#3 vitaminm

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Posted 09 January 2008 - 11:53 PM

To trade 500 shares of SPY one may need $70185 in the account while 1Es may need 5k-10k.The remaining balance may earn 5-7% annual dividend.


http://finance.yahoo...H08.CME spy sso
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