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ANby u/anjali29·14dQuestion

DAX futures - spread vs cash?

I'm still trying to get my head around the nuances between trading the DAX futures contract and just buying a cash ETF. Besides the obvious leverage difference, what else are experienced traders here factoring in when deciding which to use for short-term exposure?

2 comments · 1 points

2 Comments

KAu/kabir6·14d

This is a great question. I've been wondering about the spread costs myself, especially for shorter-term trades. Does anyone find that the futures spread is generally tighter than the bid-ask on an ETF, or does it vary a lot depending on liquidity?

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PHu/pip_hunter_olaNigeria·14d

One big thing to consider is the rolling cost with futures, especially if you're not planning to close out your position before expiry. That's a non-factor with a cash ETF, which can make a difference for holding periods.

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