Gold and Silver on Oanda and hedge/arb

Discussion in 'Commodity Futures' started by Done 777, Aug 2, 2008.

  1. Done 777

    Done 777


    I'm interested to start arb between the gold and the silver on the oanda. But i don't know how much gold and silver units i have to buy/sell for perfect hedge.

    Currently gold costs 910
    Currently silver costs 17.5000

    So i divide gold price by silver (910/17.5) and i have 52x different.

    I bought indicator for the metatrader who, after calculating, shows the silver chart on the gold chart and of course it shows deviations between metals. But there is one problem, I don't know how much units should I buy? I googled and i dont found any informations about this.
  2. PaulRon


    Just as a side note, oanda's spread for gold is about 50 cents so if you are planning on some quick arbitrage this might not be the best platform.
  3. Done 777

    Done 777

    There i see $10 differencies between the gold and the calculated silver on 1m interval so i'm accepting $.50 spread.

    So anybody knows how many units should I buy?