Steve G
Active member
<div class="bbWrapper">Many professional traders (myself included) trade the SPX index as our main trading vehicle for a number of reasons including the fact that it is CASH SETTLED (so no assignment to deal with) AND it has a favorable Tax status in the US AND it is a larger notional product so you have to trade fewer contracts to get size as opposed to SPY.XSP was introduced a while back with the same characteristics of being cash settled and tax advantaged and it is 1/10 of SPX (so essentially the same size as SPY), BUT - is it a viable trading vehicle at this point????<br />
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My very superficial view in this video where I compare 2 very similar trades in SPY to XSP tell me the answer NO (at least for me).<br />
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