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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: High-Tech East who wrote (45293)11/11/2005 11:26:51 AM
From: stan_hughes  Respond to of 110194
 
Computer trading programs eom



To: High-Tech East who wrote (45293)11/11/2005 12:33:49 PM
From: silvertoad  Respond to of 110194
 
a process of arbitrage, essentially, keeps the SP futures and cash SP index in sync, i beleive. traders watch both carefully, and pounce on momentary discrepancies, eliminating them in the process. i think that in normal conditions the cash SP index "drives" the futures, not vice versa.



To: High-Tech East who wrote (45293)11/11/2005 12:45:57 PM
From: Jack of All Trades  Respond to of 110194
 
futures are used as a hedge against many different things. I know one firm that hedges commodity futures against the SP futures.

If the Premi (delta between Cash (SPX) and futures) strays too far from the Cash arbitrage traders step in.

Then you have individual traders that speculate in the futures like I do.

And you also have traders that will spread between the ES and NQ, ie long NQ, short ES.

So there are many ways the SP futures are traded...


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