|
PureBytes Links
Trading Reference Links
|
one way that some of the spreaders play is to watch the back months,
if the back is rising and the front is going sideways or down, the
indication is that a trend change is possibly due to the upside.
so a spreader would put on a bull-spread, buying the front and selling the
back,, in hopes of an up coming bull market, and the front should outperform
the back.
and of course opposite for a bear -spread.
these situations don't always appear, but when they do, and your a position
trader,or spreader, it is worth paying attention to..
well that's one way of many of using and trading spreads.
goodtrading / Ted
----- Original Message -----
From: <editorial@xxxxxxxxxxxxx>
To: Iain Bell <iain@xxxxxxxxxxxxxxxx>
Cc: Omega List <omega-list@xxxxxxxxxx>
Sent: dimanche, 28. mai 2000 23:40
Subject: RE: Spreads
>
> I don't know... Do you trade relationships among these things? What's
the play? The derivative products follow the base product with some lag?
The spread between the derivative product and the base is confined to a
range and if it moves outside the range then there's a trading opportunity?
How do you play these spreads?
>
>
>
> ---- you wrote:
> > What about spreads between eg various european govt bond futures
denominated in euros, or eg beans, bean oil and bean meal, crude oil and
its various products etc ....Exceptions that prove the rule perhaps ?
>
>
|