Futures Spread Trading

Discussion in 'Strategy Building' started by cml2949, Dec 1, 2006.

  1. cml2949

    cml2949

    Chart wise, I believe the pound/$ and euro/$ is subtracted to create the spread. Which gives you a spread price.. However, the euro/pound is divided to let you measure what the euro is worth .. It seems that you can't measure what a currency is worth unless you compare it with another currency.. Which makes the euro/pound not a spread trade, but more of an outright trade..

    Does that seem correct?!?
     
    #41     Dec 20, 2006
  2. spread trade you make your dough in dollar
    currency pair you make your dough in the currency you long
    which is subject to exchange risk between that currency and your local currency ?
    something like this ?
     
    #42     Dec 21, 2006
  3. cml2949

    cml2949

    Boy has the spread been wild.. The first day trading the 6e-6s spread it moved 30 something ticks.. Whats the norm on the trading range of the euro/swiss franc spread trade?
     
    #43     Dec 28, 2006