Spy reference

[jcga1981]

hello, generally when I operate with an asset I usually have spy as a reference ... now I want to start operating directly with spy ... for those of you who operate with spy, do you have any reference?

 

[Alex]

/ES

 

[jcga1981]

alex ... but the spy and the /ES not practically the same?

 

[BenTen]

@jcga1981

• SPY = S&P 500
• /ES = S&P 500 Futures

 

[Alex]

alex ... but the spy and the /ES not practically the same?

they do follow each other you are correct. however at the end of the day they are 2 differently traded instruments. Also it nice to track the overnight activity in the /es. as it's traded 24 hrs.

 

[jcga1981]

Thank you

 

[codydog]

spy and /es are interchangeable and trade at a correlation of 0.99+/- , when they diverge arb traders come in and 'fix' it as both reflect a basket of securities.

if you're going to trade anything versus spy, my suggestion is to consider watching their correlation as some stocks and spy can trade at very wide divergences and never come close to intersecting.

ok, I'll ad that if you're a Tier 1 firm, there are real trading opportunities in these minor divergences, but, imo, the differences for most retail traders is not significant. please don't @ me because someone read an academic paper saying how much money they 'think' retail can make trading the arbs.

 

[jcga1981]

Thanks for the answer codydog ... you can possibly answer a question I have ... you can operate futures "on demand" ... I have the problem that the graph is loaded but then it freezes and does not advance ... happens with futures

 

[codydog]

@jcga1981 - sorry, i've never used 'on demand', i've heard that may folks have had difficulties with it.

 

[jcga1981]

Thank you

 

[jcga1981]

hello taking advantage of the thread ... does the /es perform the same movement as / esu20? I ask it because in the on-demand modality in the year 2018 it does not recognize me at the / es but nevertheless at esu18 it does