Trading spread on indices. How much?

stevem12

Active member
On the subject of the DIA, it may be more liquid than the YM, BUT don`t forget about the leverage. You need 500 "shares" of the DIA to get the same leverage as 1 YM contract. If you look at the volumes, they are 100x the YM, but the YM`s leverage is 100x the DIA! So is it really more liquid?

Also I would imagine it, the SPY`s and the QQQ`s are all subject to the rules on PDT, so if you want to day trade them without $25,000 you can forget it.
 

Naz

Experienced member
Doing the same thing with the QQQ gives me this.
The problem occurs with many that they dont understand all the things that you can do with a level 2 Nasdaq screen and doing this is just one of them.
 

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stevet

Established member
you will find them more liquid - but at the end of the day - i know the yms have their fans - so i will just mention the es in passing!

and yep - with the dia - you will be subject to 25K min with 4 to 1 leverage with a retail broker such as IB , but you can short them though
 

stevem12

Active member
BB

If you are trading longer term and are profitable, then SB`s would be better surely? The dealing costs on the DIA may be less, but the longer you hold a position the less costs impact, and don`t forget TAX. :eek:
 

balusa

Junior member
Well, now I have been in indices for about a couple of weeks and I can say that so far I do not feel the difference between trading in indices and CFD equities. The company just set up a certain pip value for indices in order to make possible trades in index ticks. As to my results, they are average. I still have not won much...But I have not lost much either :)
By the way, I still have the same question: is 0.1%-0.15% spread is a good spread for indices?
 
 
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