Sidebar: Advantages Of Trading QQQ by Misha T. Sarkovich, Ph.D.
There are advantages to trading the QQQ:
1 Large liquidity: There is no doubt the QQQ has
continuously large average daily volume. It is one of
the most actively traded products on the market,
particularly at the American Stock Exchange (AMEX).
Professionals and hedge fund managers trade the
QQQ through highly liquid electronic communication
networks (ECNS). Sidebar Figure 1, which contains
daily volume data since January 2000, gives you an
idea of the trading volume of the QQQ. The average
daily trading volume during the last two and a half
years has been approximately 60 million shares, with
the highest daily volume reaching a level of 219 million
shares. It is easy to get your buy or sell limit orders
filled at the quoted bid and ask price, so getting in and
out of QQQ positions is simple and fast.