Hedging YM with INDU

Discussion in 'Trading' started by ranger64, Mar 2, 2008.

  1. trading with Interactive Brokers: suppose I have a position in ym and globex goes down. If I want to hedge my ym contracts with the pit-traded dow contracts (indu), do i need additional funds in my account to pay margin for these pit-contracts? what i´m doing is neutralizing my risk, so it wouldn´t seem logical.
    For example if I am long 2 ym-contracts, globex goes down and I hedge my position going short one indu-contract (one indu equals two ym), margin requirement should actually go back down to zero. is this the case?