Calendar or Butterfly! ( futures to futures)

T

traderjo

Trying to find some info on
- When to trade a Calendar spread and when to trade a Butterfly spread! ( all futures to futures)
- The calendar I am trading is exchange traded spread but that exchange does not have a exchange traded Butterfly so can't chart !
Any ideas anybody?
 
traderjo said:
Trying to find some info on
- When to trade a Calendar spread and when to trade a Butterfly spread! ( all futures to futures)
More...

When trading futures spreads, butterflies etc. you're taking a view on the (future) shape of the curve. Technical traders generally fade any 'humps' in the curve, while longer-term traders may take a fundamental view on how the curve should change if certain conditions emerge / cease to exist.

traderjo said:
Trying to find some info on
- The calendar I am trading is exchange traded spread but that exchange does not have a exchange traded Butterfly so can't chart !
Any ideas anybody?
More...

You can always chart 2 calendars to create the implied butterfly - this is better than creating the implied from the outrights, but obviously still not as 'safe' as an exchange traded product.


Note - if you're just getting into the world of spreads etc. I suggest you have a look at more liquid / less volatile markets rather than the product you mentioned in your next post.
STIRS are good for starting out.
 
H2O said:
When trading futures spreads, butterflies etc. you're taking a view on the (future) shape of the curve. Technical traders generally fade any 'humps' in the curve, while longer-term traders may take a fundamental view on how the curve should change if certain conditions emerge / cease to exist.



You can always chart 2 calendars to create the implied butterfly - this is better than creating the implied from the outrights, but obviously still not as 'safe' as an exchange traded product.


Note - if you're just getting into the world of spreads etc. I suggest you have a look at more liquid / less volatile markets rather than the product you mentioned in your next post.
STIRS are good for starting out.
More...
One other question in my mind is is converting a Calender spread in to a butterfly a good hedging Technic?
Re chart 2 calendars to create the implied butterfly... I doubt on CQG desktop I can do that
 
traderjo said:
One other question in my mind is is converting a Calender spread in to a butterfly a good hedging Technic?
Re chart 2 calendars to create the implied butterfly... I doubt on CQG desktop I can do that
More...

Create a user-defined spread of any structure you want. Call support, if you have trouble. There are ex-traders there that have showed me a thing or two.
 
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