Detailed cash flow about pairs-trading ETFs? Suppose we want to pairs-trade ETFs...

[mizhael]

Detailed cash flow about pairs-trading ETFs?

Suppose we want to pairs-trade ETFs... lets say we long $100 worth of XXX and short $100 worth of YYY and rebalance monthly, i.e. bring the balance back to long $100 and short $100.

How do the margin and interests work from an investor perspective? Do we literally have 0 initial cash outflow?

Thanks a lot!

 

[Soon2Bgreat]

http://www.interactivebrokers.com/en/p.php?f=tws&p1=papertrader

You can set the trade up many different ways - how do you choose to ratio the shares?

...also, why do you always phrase your posts as what "we" would do. Are "we" somehow in a partnership?