spread trading

Discussion in 'Trading' started by abaazov, Mar 8, 2012.

  1. abaazov

    abaazov

    Hi, I am trying to find a listing of the most popular spreads people trade, any spreads other than calendar spreads. If anyone knows of such a list please let me know. If not maybe we can start a list of the most popular spreads.
    Thanks
    Amnon

    p.s. I will be posting this in all the Futures forums, as there is no one common Futures forum.

    edit: i am referring to futures spreads only.
     
  2. just21

    just21

    crack spread
    wti/brent
    nob
    2/5
    ted
    sp/ndx
     
  3. abaazov

    abaazov

    Does anyone know what the most popular futures spreads are in prop shops? Are most prop shop traders allowed spread positions overnight? (again, calendar spreads notwithstanding)
    Amnon
     
  4. just21

    just21

    ted, euribor/shatz was popular in London. You can now trade this on the uk curve as Liffe have introduced a two year gilt. Oil spreads are now popular in London.
     
  5. abaazov

    abaazov

    with regards to oil spreads, can you be more specific?
    Amnon
     
  6. abaazov

    abaazov

    what about 10yr bond spreads? bund/tnote? are those popular?
    amnon
     
  7. bone

    bone

    You are going to find the obvious stuff you have mentioned - and there are many variations and combinations and permutations that are less obvious. You will find that the bigger prop traders protect their spread combinations if they believe them to be less crowded and unique.

    You also have many big prop traders spreading the futures against the cash markets and the OTC Swaps markets. There are probably millions of different combinations - and it could be a simple pair, or a butterfly, or a condor, or .... ?
     
  8. just21

    just21

    How do you get access to cash bonds to trade the basis?
     
  9. bone

    bone

    The bigger FCMs will also clear your cash Treasury trades through BrokerTec or Cantor Fitzgerald. The OTC stuff will likely require a prime brokerage account.