Corn Spread Order Execution

Discussion in 'Commodity Futures' started by livingston777, Nov 9, 2009.

  1. Question for the pros:

    Is it common to wait to get into a spread for 5 days? I have had an open order now that does not get filled. . .

    Here is the order in question:

    Buy: 1 ch10
    Sell: 1 cz9

    Limit/sell: 13.75

    The original was 13.50 but after 2 days of no fill I figured what the heck, I'll get in higher. I am only doing "1" to see how quick I can get in or out so please no need to comment on that part unless fills happen faster with larger lots.

    The differential has been 14 for days, at least when I check so I don't see why there is no fill here.

    - Note: I am not looking to "day trade" spreads here but being after 5 days with no fill it makes me wonder if I had been in and wanted to get out if that would be the case too.

    -Or is it just that I am trying to get in when nobody else will take the other side? Still there is a .25 pt difference so someone should take this on.
  2. TraDaToR


  3. TraDaToR


    You want to buy march and sell dec, so you want to buy the difference between the two @ 13.75 when the spread is @14, so you are "under" the market, in the queue...

    What am I missing?
  4. JPope


    move it to -14.75 and you'll get filled
  5. If you work a bid below the market and the market never goes down, you will never get filled. Whats so hard about that?

  6. I must not have entered my order correct on here... I want to SELL the spread. If it is currently valued at 14 or higher why will it not SELL at 13.75.

    Am I not able to sell a spread that I am not in? I believe the differential will narrow in the near future so I want to sell this spread and then buy it back later for less.

    What am "I" missing here?
  7. The spread market quotes the spread as sell Dec buy March, so you really want to BUY the spread, not sell it. Thus as stated above you under the market. This is just one of the idiosyncrasies of spreading.
  8. OK well if I think the difference between Dec and March will be less in a week or so then what spread do I want to buy?

    + Dec / - March?

    Thought you could short a spread the same an an outright. . .
  9. If you expect the spread between the two contracts to move towards zero, then you need to buy Dec sell Mar. You can short a spread, but you have to understand how it is quoted.
  10. Ah Ha!

    Thank you.
    #10     Nov 10, 2009