Trading spread on indices. How much?

[stevem12]

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]

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.

 

[Bigbusiness]

What about using the DIA for longer term trades with smaller stakes? Might be better than spread betting.

 

[stevet]

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]

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.

 

[keano]

How do you capture images? like the ones Naz and BigBusiness posted???

Cheers

Keano

 

[balusa]

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?