The Crush Spread

Covered Call, No Problems at all. What kind of slippage could one usually expect on the crush trading very small lots? I know it probably depends a lot on one's Setup.... Id be looking to leg into 2 of the contracts at market

 

Maninjapan, you might be intested in this publication from CBOT. scroll down and there is a .pdf on the crush spread.

http://www.cbot.com/cbot/pub/page1/1,3248,1060,00.html

 

Thanks, I will! Do you trade it based on Fundamentals or more from a technical point of view?

 

I'll take a long term position on fundamentals and then scalp the spread during the day using autospreader.

 

hey CC hows it going man? I haven't heard from you in a while.

 

Better now Rt. I think I spent too much time posting charts and not analyzing markets a few weeks back and got smoked pretty good. I'm still alive and trading though. What are you looking at today? Grains?

 

I was wondering about you, I had the aus/can cross blow up on me bad a few wks back. I have scaled down significantly. I am just kinda watching, waiting to enter coffee. Got some spreads working. Lookming at dec natty. you see anything

 

ive been playing with gold platinum alot. I am waiting to re-enter the spread here in a few days, it got pretty high today. wiating for a pullback

 

Rtrader, do you trade Gold/ Plat on a 1:2 ratio?

 

I have been lately, and it has been working very well. That't the NYMEX ratio so if you want spread credit that's how you gotta do it, but on Platinums way down from 1000 if you had beendoing 2:1, it could have blown through stops several times. Just be very areful with it. I heard somebody call it a "texas hedge" on this board, and that is where you can lose on both sides. And that guy certainly is right!