On IB. CL Dec 21 47.81 (last price) CL Dec 22 46.36 (last price) CL Dec 21 - CL Dec 22 (12m calendar) -1.41 (last price) Now correct me if I am wrong but I always thought big number minus small number = positive number not a negative number lol should be the calendar be +1.41 not -1.41. Can anyone enlighten me on why this is? cheers.
CL dec 21 - CL dec 22 = +1.41 check your platform and see if it is CL dec 21 - CL dec 22 or - ( CL dec 21 - CL dec 22 )
definitely no minus sign there. I am expecting IB to come back to me and say 'thats just the way we do it at IB' lol.
The further out future is at a discount, if you buy the spread you are buying Dec 22 and selling Dec 21 - hence negative is correct. If in doubt, right click on the order to see the details of the combo.
Different brokers/ trading platforms use different ways of computing spread. it is a headache if we have many brokers and trading platforms. some take near month minus far away month. some take far away month minus near month. definitely CL dec 21 - CL dec 22 = +1.41 NOT -1.41
thanks chaps all the firms/brokers I have traded at in the past have a calendar as near month minus far month. I guess IB do it the other way around to be awkward sods. Somehow I knew this would come back to 'this is just how we do it at IB'. I guess it is going to be the same with margining a fly with them 'thats just how we do it at IB'.