Jump to content

Trading Costs - Beginniner


Recommended Posts

Hi community,

I'm trying to understand the cost.

If say I buy the ST Index at say 2600 the bid/ask is 2599 2601, does that mean that the cost of the index contract is $2 x 1 = $2 for 1 mini contract?

At the same time if I buy the sti ETF at 2.70 then my brokerage is 0.1% minimum of $10. So for smaller accounts best to go with the index right?

Is it better buy the index or the ETF?

 

 

Link to comment

Anything you buy has a spread. If no separate commission is charged then your only effective transaction cost  would be the spread unless you hold the position overnight.

A futures bet doesn't have any more costs, but of course the price itself could have a built-in premium that erodes over time (with interest rates so low this premium would normally be small). Some futures trade at a discount to the near month depending on expected delivery issues/supplies.

A daily-funded bet has a daily rate of interest charged to your account.

A "spot" DFB is artificially composed of a time-varying mix of the nearest two futures contracts so there is a daily adjustment depending on the varying ratio of the two constituent contracts and on the variation in the premiums of the near and further month. In oil for example the delivery month and later month can show quite a difference. The spread is normally wider for the spot markets offered. If a second futures month isn't readily available these markets can also become "closing only".

 

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      22,068
    • Total Posts
      92,908
    • Total Members
      42,474
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    scobes2
    Joined 17/05/23 10:51
  • Posts

    • Does anyone else know any other SB providers that you can use to trade through TV?  I've only so far seen CFD providers which doesn't work for me due to tax reasons (mainly the hassle of having to account for it as well as the obvious cost).
    • Is there any update on when/if there will be any integration with Tradingview???
    • The anonymity of cryptocurrency transactions can vary depending on the specific cryptocurrency you use and the methods you use. While some cryptocurrencies provide a degree of privacy and anonymity, it is important to note that achieving complete anonymity can be difficult. Most cryptocurrencies operate on a pseudonymous basis. Transactions are recorded in a public ledger, called a blockchain, using cryptographic addresses instead of personal information. However, these addresses are usually not directly linked to a real identity, unless someone voluntarily discloses this information. Some cryptocurrencies, such as Monero (XMR) and Zcash (ZEC), are specifically designed to increase privacy and anonymity. I read on https://deeplab.com/darkweb/anonymous-sudan-launches-cyberattacks-on-middle-eastern-news-outlets-expands-target-list-with-four-additional-names that some people use this anonymity as a cyber attack.
×
×
  • Create New...