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Hello
Check this url and it will take you to a chart on corn/wheat spread.. Are they
opposite of wheat/corn?? http://www.cbot.com/mplex/vendors/mri/botds10.htm If we
have Corn/Wheat spread, why not wheat/corn spread..??
http://www.cbot.com/mplex/contract/margins.htm If you look under margin
requirement for wheat under Hedge section, I think that's the margin
Probably have to find a broker who will be able to understand how to do this
spread.
My manual was printed in 1986, maybe its too old..
Respectfully Yours
Gary Bodnar
I4Lothian@xxxxxxx wrote:
> Just a side note. A client was interested in the wheat/spread margin
> recently. I called the margin department of our FCM. They said the exchange
> does not recognize this as a spread currently. Of course, I questioned this
> and e-mailed the CBOT. Sure enough, the CBOT margin people said that the
> corn and wheat do not currently have even a 60% correlation, which would
> allow for a spread margin discount.
>
> I am not quite sure how the CBOT figures this correlation, but that will the
> subject of another e-mail to the CBOT. :-)
>
> Regards,
>
> John J. Lothian
>
> Disclosure: Futures trading involves financial risk, lots of it!
>
> Disclosure: John J. Lothian is the President of the Electronic Trading
> Division of The Price Futures Group, Inc., an Introducing Broker.
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