I do not know why??As I log into my PC this morning I see quite a few DMs asking about RUT. Here’s my take:
I don’t trade RUT. Most brokers margin short legs like they’re naked, so the BP hit is huge. Even with portfolio margin it’s inefficient, spreads are wider, and liquidity is weaker. There’s no clear advantage over SPX.
If you want smaller size, just use XSP.
Please stop sending me DMs about RUT. Before you start any idea, strategy, or optimization, always check the margin requirements with your broker. Some products are simply not viable for any strategy, profitable or not.
I won’t reply to any DM about RUT or VIX. VIX is just a derivative of a derivative of a derivative. If you want to trade the S&P, stick with SPX — it’s the direct derivative and the cleanest product.
I don’t trade RUT. Most brokers margin short legs like they’re naked, so the BP hit is huge. Even with portfolio margin it’s inefficient, spreads are wider, and liquidity is weaker. There’s no clear advantage over SPX.
If you want smaller size, just use XSP.
Please stop sending me DMs about RUT. Before you start any idea, strategy, or optimization, always check the margin requirements with your broker. Some products are simply not viable for any strategy, profitable or not.
I won’t reply to any DM about RUT or VIX. VIX is just a derivative of a derivative of a derivative. If you want to trade the S&P, stick with SPX — it’s the direct derivative and the cleanest product.
