Just for general idea about executing the exchange supported spread trading....
Nope. I think 7 years later the platform might have changed? Yes on the "idea" of it, but using a video that old seems wrong. People need fresh meat, not old stale ort.
Can you help me understand spread treading?
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Nope. I think 7 years later the platform might have changed? Yes on the "idea" of it, but using a video that old seems wrong. People need fresh meat, not old stale ort.
Ok, we clearly don't understand each other. So I wish you well in your trading journey and I'm out of that thread.
"and rather I got treated as a sort of leech who wants the easy prize" that's exactly what you did asking that kind of question before digging just a bit in topic. So don't be surprised.
"and rob people of their hard work" - not rob, just show them that you don't want to do your own hard work, from scratch, the work that other people went through.
I posted you some links, very useful, you didn't bother to check what is that about and answer.
The more you put into that, the more you will get from that. But it's your choice.
Here is answer to your question (so you know that we here are bunch of nicest people in the world):
- soybean is quoted in cents per bushel, minimum fluctuation (tick) is 1/4 of a cent, worth 12,5 usd. So it's 4 tick to have 1 point/ unit (1 cent), that's 50 usd per point (unit, in this case - cent)
- soybean meal is quoted in cents per short tone, minimum fluctuation (tick) is 0,1 of a cent, worth 10 usd, so it's 10 ticks to have 1 point/ unit (1 cent), that's 100 usd per point (unit, in this case - cent)
- soybean oil is quoted in cents per pound, minimum fluctuation (tick) is 1/100 of a cent, worth 6 usd, so it's 100 ticks to have 1 point/ unit (1 cent), that's 600 usd per point (unit, in this case - cent)
- metals you mentioned, let's take gold, it's quoted in dollars (and cents) per ounce, minimum fluctuation (tick) is 0,1 of a dollar, so it's 10 ticks to have 1 point /unit (1 dollar), that's 100 usd per point (unit, in this case - dollar)
"What a teacher would that be?" - we are not your teachers
I had come to this conclusion at post #47, page 5. On my own.
You replied right after, without telling me "that's right, good job".
Instead you told me to go study and gave me the links of barchart.com and the CME website, which I already knew and again had nothing to do with my issue.
Your conclusion was "ohhh some mans 1, some means 0,01", I think without knowing WHY.
Ok, I just wish you luck, you will need a lot of it, if you think that what I sent you has nothing to do with your issue
Who need any ratios trading spreads..."that's right, good job" - what am I ? your parents ? kindergarten teacher ?
Go hard or go home.
I'm out of that thread.
Your conclusion was "ohhh some mans 1, some means 0,01", I think without knowing WHY.
Ok, I just wish you luck, you will need a lot of it, if you think that what I sent you has nothing to do with your issue
"that's right, good job" - what am I ? your parents ? kindergarten teacher ?
Go hard or go home.
I'm out of that thread.
My conclusion was the same exact as the one you wrote here:
"Here is answer to your question (so you know that we here are bunch of nicest people in the world):
- soybean is quoted in cents per bushel, minimum fluctuation (tick) is 1/4 of a cent, worth 12,5 usd. So it's 4 tick to have 1 point/ unit (1 cent), that's 50 usd per point (unit, in this case - cent)
- soybean meal is quoted in cents per short tone, minimum fluctuation (tick) is 0,1 of a cent, worth 10 usd, so it's 10 ticks to have 1 point/ unit (1 cent), that's 100 usd per point (unit, in this case - cent)
- soybean oil is quoted in cents per pound, minimum fluctuation (tick) is 1/100 of a cent, worth 6 usd, so it's 100 ticks to have 1 point/ unit (1 cent), that's 600 usd per point (unit, in this case - cent)
- metals you mentioned, let's take gold, it's quoted in dollars (and cents) per ounce, minimum fluctuation (tick) is 0,1 of a dollar, so it's 10 ticks to have 1 point /unit (1 dollar), that's 100 usd per point (unit, in this case - dollar)"
No you're not my parent nor my kindergarten teacher, but thanks for trying to depict me like an idiot once again. We went from being treated like a sort of ungrateful robber who wants to steal other people's knowledge or a lazy idiot who wants other people to gift him the ways of making money (despite me studying this stuff after work) to a stupid kid who can't understand something.
You are/were simply someone more expert on a topic than me, who was supposed to help by answering a simple question. But for whatever reason you decided to not do so and instead wrote oceans of words of unrelated stuff.
The answer to my question was extremely easy: "unit" doesn't always mean one in this field. That was it. But apparently for many of you it was rude of me to ask such a question and it would have taken years of study to grasp such a concept. Sure man, I am the one who has been rude here.
Anyways I don't want to have bad blood with you or anyone else. I am sure we misunderstood each other due to the barrier of text and that in real life none of it would have happened. Thanks anyways for your time.
Below is the Daily Sept 20 Corn vs Mar 21 Corn Calendar Spread Pair (red and green candles). I have overlaid the Daily Continuous Corn Futures Contract (dark blue and light blue bars) on the same chart.
I did this in order to explain a few points. First, that for the most part (but not always), a simple calendar pair spread will mimic the behavior of the flat price front futures contract. If you are short XXXX contracts in a calendar pair spread - from a risk perspective, you are essentially short XX the outright futures contract.
I teach my clients to trade quite a few Butterflies and Condors when it comes to intra market spreads (same product, different calendar expiry months). I do this for several reasons. First, generally speaking they behave differently than the flat price future and the calendar pair spread. Secondly, they tend to isolate supply vs demand variations in the forward curve. They also tend to "behave" a little better in terms of modeling and risk.
I did this in order to explain a few points. First, that for the most part (but not always), a simple calendar pair spread will mimic the behavior of the flat price front futures contract. If you are short XXXX contracts in a calendar pair spread - from a risk perspective, you are essentially short XX the outright futures contract.
I teach my clients to trade quite a few Butterflies and Condors when it comes to intra market spreads (same product, different calendar expiry months). I do this for several reasons. First, generally speaking they behave differently than the flat price future and the calendar pair spread. Secondly, they tend to isolate supply vs demand variations in the forward curve. They also tend to "behave" a little better in terms of modeling and risk.