spread trading in YM ES NQ

Discussion in 'Index Futures' started by osho67, Feb 28, 2012.

  1. Is it possible to trade spreads in above instruments? Buy one expiry and sell another expiry in the same instument . Please somebody give guidance on this topic. Are there any books and other resources to read. Any information much appreciated . Thanks
  2. Lucias


    Technically it is possible.. most brokers do not support these spreads (give margin reductions). RJO futures seems to be the broker most-in-know regarding spreads. I have seen overnight margin reduction for spreading ES/NQ but I haven't found many brokers that offer that.

    It sounds like you are referring to a calendar spread.. most people doing calendar spreads are doing those in markets which have fundamental supply/demand, mostly commodities.

    Check amazon.. I picked up bout 12 spreads books there.

    Maybe Bone can add more..
  3. Thanks for your reply. I will look amazon for some books.

    If I am making profit in one expiry , I will be making a loss in another expiry. Aim is to take net profit sometimes or take net loss at other times. (using same instrument).
  4. Handle123


    It is very easily done if you legg into them, but if you want to do as a spread, you will have to email your broker the spread difference to be filled at. I believe Daniels is pretty good broker at spreading, but I think almost any are and I believe some platforms are better at putting them on. I have always called them or emailed.

    There are a number of books on when to place spreads by dates, and a couple services like MRCI(Moore), but I have never seen an excellent book on how to trade spreads as in a method. There been a couple attempts, but none I have taken seriously. I been working on that for past few months myself.

    I think for those who like to make a more consistent profit, spreads way to go, less margin and not as wild as outright trades. BUT still have to a well backtested method.
  5. Thanks. IB does allow these spreads and in my paper trading a/c I have sold ond futures contract in NQ for june exp and bought one in sept exp. i will watch this to learn at the moment. Books mainly talk about spreads in two different products,