Any Index Futures Spread Traders here?

[J_Smith]

Is this similar to pairs trading ??

No, just the the Italian MIB makes huge moves in the day - the futures is €5 multiplier with a spread of usually 5 points, while the options are €2.5 multiplier with a spread of around 10 to 25 points for atm options.

Futures are not for the faint hearted - options can have good payoff for the risk taken on. Some years ago when trading the options, I left a call expire worthless - only to find out next day it made over €1K when settle price was calculated!

Can of course be pairs traded, same as any other market, but would need a bit of work to see what the best index to pair with would be?

J_S

 

[Rationalize]

I was talking bout outright speculative trades on the index spread only - not worth the time and effort!

J_S

I think it depends on the market.
I know some are very efficient - difficult.
Can't speak for all tho.
I haven't done the work to price them.

 

[Autospreader]

Does cts t4 have an autospreader function for futures?

Yes they do

 

[bone]

The great thing about CTS is that you can lease it on a transaction basis and it caps out. Not an advert but this is true for Advantage Futures.

We take stock index set-ups from time-to-time for swing trades but its not common for us. Probably because all my guys are so enamored with exchange supported intra-commodity spreads.

I do have a client who is a CTA and he trades ES vs NQ for one of his funds. The Dow versus the ICE Russell is another common inter market equity index spread.