Trading the Index Futures with charts of the cash Index ?

Discussion in 'Index Futures' started by Marsupilami, Sep 3, 2005.

  1. I have been doing some paper trading in the last months in the ER2.
    I noticed thatThe underlying cash index exhibits less noise, is not as jumpy.
    Do you think that one can be succesful with trading the future using the cash index ?
     
  2. bigbob

    bigbob

    Typically, the exchange supplied quotes of the cash indices are only updated once every 15 seconds. Some are only once a minute. This may be why they seem less jumpy.

    Bob
     
  3. sure. arbs do it all the time.
     
  4. ...where is the Russell 2k cash index calculated ? Is it the NYSE or AMEX ?

    Thanks,

    Marsupilami
     
  5. This is like...newbie error 101!

    That's virtually impossible. May have worked 4-5 years ago. Not today. At least not for daytrading purposes, anyway.


     
  6. No, it's not even close. It's because HALF of the stocks used to calculate $RUT probably trade once every 5 minutes on average!

     
  7. gnome

    gnome

    Yes! Unless you are trying to scalp (always a fool's errand, imo), you can trade the futures when you get an indication/signal from the cash index.

    Futures are leveraged, thinner, jumpy, and tend to overshoot. Trading off of the cash with a proper stop is OK.
     
  8. Hi everyone, I appreciate your responses. Now could someone just tell me where the RUT.X is traded ? Which exchange provides the quotes ?
    Thanks