Let me give you a client example. I met with a client last week who held a mid curve 1-2-1 Euribor butterfly from April 01, 2016 until July 25, 2016. As I recall, his net on the trade was about +$900. I think his initial spread margin to carry the trade was like $400. His max drawdown might have been a couple hundred bucks.
Unless you have some sort of arbitrage worked out, at least in my mind it doesn't make much sense to trade these things in a high frequency day trading fashion.
But you can swing trade these things for cheap and build up some equity in your account. And when you get going on it - lever the piss out of them.
Unless you have some sort of arbitrage worked out, at least in my mind it doesn't make much sense to trade these things in a high frequency day trading fashion.
But you can swing trade these things for cheap and build up some equity in your account. And when you get going on it - lever the piss out of them.
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