Futures spread ratios and multipliers

Discussion in 'Trading' started by rolando87, Dec 30, 2013.

  1. Hey folks,

    Need some help in learning how to create spread multipliers based on a given spread ratio. Does anyone know the proper way of constructing a good multiplier if I come up with a decent ratio.

    It can get pretty complicated when dealing with treasury futures as leg 1 and some other decimal quoted leg such as Eurodollars as the second leg. It becomes even more of a headache because I use CQG for charting which quotes the decimals differently than say Xtrader (which is what I use for trading).

    Any pointers or resources on constructing these would gladly be appreciated. Can't seem to find any info online on this.
     
  2. Please provide a better "visual/mathematical" description of what you're attempting to do. :cool:
     
  3. Here's a video that explains what I'm trying to get good at.

    http://www.youtube.com/watch?v=LEWNKYK1z70&list=PLCnaCAxNEkkWC3jCD2xi7qkUgE7mOQJcQ&index=8

    The spread multiplier is the way you can represent a spread in CQG or some other charting software.

    It's actually pretty complicated because I need the multiplier to represent equal weightings of the spread ratio. Spread ratio and multiplier are 2 different things.

    Hope that explains it a bit. It's kinda hard to explain I guess.