Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What are the SPY & QQQ?

April 26, 2017qqq spy

0

Posted

What are the SPY & QQQ?

1 Answer

0

Posted

The SPY and QQQ are ‘Exchange Traded Funds.’ They represent a basket of stocks mimicking the composition S&P 500 and Nasdaq100 stock indexes. They trade on an exchange just like individual stocks and can be sold short on a downtick. In essence, they allow you to trade the entire stock index much like the SP or Nasdaq futures. However, unlike futures contracts, the QQQ and SPY do not expire and are not leveraged instruments.