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These are not my primary trading vehicle, however I do trade them
occasionally and have never found a liquidity problem. The b/a spread on the
NQ contract regularly trades the 0.50 minimum and the QQQ typically trades
at the .01 minimum. RT commissions based on IB's exceptionally low rate
would be 2.40 x 2 or 4.80 for NQ and 6.50 x 2 or 13.00 for QQQ. RT b/a
spread on 800 QQQ at .01 x 800 x 2 would be 16.00 while RT b/a spread on 1
NQ at .50 x 20 x 2 would be $20.00. Total RT costs:
800 QQQ @ 13.00 + 16.00 = $29.00
1 NQ03U @ 4.80 + 20.00 = $24.80
The facts show that the RT commission + spread costs of the NQ is clearly a
bit lower and the liquidity is in the NQ is clearly adequate. I believe that
generally the NQ emini more closely tracks the NDX itself than does the QQQ
(smaller discount/premium to index). Add to this the fact that the 800 QQQ
is subject to higher margin requirements and, depending upon account size,
may be subject to day trading regulations. Bottom line ... there are few
compelling advantages to trading the QQQ in lieu of the emini.
Earl
----- Original Message -----
From: "Alex Bell" <alex_bell@xxxxxxx>
To: "ketayun" <realtraders@xxxxxxxxxxxxxxx>
Sent: Monday, June 30, 2003 10:02 AM
Subject: Re: [RT] qqq vs nqlx
> Hello Kate,
>
> I made few trades in qqq futures but they have no liquidity. Spread
> 5-10 cents and sometimes may be no single trade for an hour.
>
> Best regards,
> Alex mailto:alex_bell@xxxxxxx
>
>
> Monday, June 30, 2003, 7:43:59 PM, you wrote:
>
> k> Could someone please explain the pros-cons of trading the q's cash vs
> k> futures?
>
> k> Thank you,
>
> k> Kate
>
>
>
> k> To unsubscribe from this group, send an email to:
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>
>
>
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http://docs.yahoo.com/info/terms/
>
>
>
> To unsubscribe from this group, send an email to:
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>
>
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