I'm new to the industry,spread trading from an arcade and people keep telling me spread trading on Eurex and LIFFE is getting harder and won't be around much longer, is this true or is there still money to be made going forward?
Spreading pays in a high volatility environment. Exactly what you will not find in the equity markets now. Spreaders have moved on ...
There are still plenty of opportunities - you just have to be patient and wait to work the better setups. problem is that the general volatility in LIFFE interest rate markets is so low at the moment. But realistically, UK & European interest rates have been stagnant for the last two years and that looks like it will start to change in the coming months. hopefully will give rates a bit more to key off of. I'm scalping calendars in Euribor, Short Sterling and Eurodollars. But I agree, it has been a tight curve in all the spreads
How much liquidity is there in the securitized spread contract? If you were trading a Dec/Mar spread and each contract traded 50,000 times, how many of those would be though the securitized spread contract?