Single Stock Futures???

[rstackman]

First off, I would like to say that this site is incredibly helpful to the novice daytrader that is starting out. I just began my venture as a full-time daytrader a couple weeks ago and was looking for a good forum where I could get some ideas. I just signed up last night and found myself reading posts for most of the night, some really good feedback out there.

As for my question, do most of you guys trade SSF's? I mostly scalp the YM, but like to take short-term swing trades in certain stocks. I use tradestation and my capital is not quite sufficient to meet the minimum for a standard daytrading account. I'm new to the One Chicago exchange, but feel like I'm constantly getting lousy executions. I try using limit orders based around the underlying stock but they typically dont get filled b/c the spreads are so wide. For those that trade SSF's do you just place market orders? And one last question, do you just trade the most current month?

Thanks in advance. I really look forward to talking to some of you about this exciting profession!

:idea: Ryan

 

[Bolimomo]

As for my question, do most of you guys trade SSF's?

I use TradeStation too. I looked into trading SSF's using TradeStation but found that the liquidity is too little, and spread too wide. If you trade the stock, the most liquid stocks have 1 cent to 2 cent spread. Imagine that! Just a penny to get out if you are having a second thought! Not for SSF's. I don't see any advantage trading it except to have a higher margin trading power. But leverages can kill you as well as to benefit you.

And... it's harder to scale in to a position with SSF's. 1, 2, 3, 4 contracts instead of 200 shares, 300 shares, etc.. Not enough flexibility.

 

[AnEdge]

SSFs are a great idea but the liquidity is not there yet and the spreads are too wide.

 

[rstackman]

SSFs are a great idea but the liquidity is not there yet and the spreads are too wide.

Haha...Perfect timing, I just decided today actually, to solely focus on the Forex markets.

 

[Bolimomo]

SSF seems like a good idea. But it has not gained popularity. The tax advantage (in U.S. soil) is good, 40/60 for long/short-term capital gain/loss. But the liquidity and spread make it prohibitive, as of this writing, to trade. There are too many choices on trading vehicles these days. With Ultrashort ETFs, I can short stocks even using IRA accounts and don't need to trade futures.