Grains To The Moon

Quote from Bingoking:

I have 3 friends who work the pit at MGX. From what I gather the vast majority of their trades are spreads. They are always looking for ways to hedge. I do not trade the grains but I like to keep an eye on them. I pretty much just trade the ES.
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I'm an Indices trader too but I love the eGrains. The spreads don't interest me but I have friends as well that only do them.
 
Is there a liquid way to trade grainsspreads in one go so to not pay bid-ask spread and commissions twice.

Also one needs to be 10 times bigger as spreads are mostly hedged.
If there is such a thing it needs to be big to get decent bang for the buck and keep commis low.
 
i make a living trading spreads, with a little real estate on the side (not much right now lol) grain spreads are very liquid, and there is such value in them right now. if anyone ever has any ? email me and I will give my humble oinion.
 
Quote from Fishbird:

Is there a liquid way to trade grainsspreads in one go so to not pay bid-ask spread and commissions twice.

Also one needs to be 10 times bigger as spreads are mostly hedged.
If there is such a thing it needs to be big to get decent bang for the buck and keep commis low.
More...

For spread trades you do not pay two full commissions for each leg. You pay one commission which should be quite a bit less. Check with your broker.
 
I think I have that backwards, the MARGINS for spreads should be less than what they would be if you traded the contracts seperately, sorry.
. . . pay no attention to that man behind the curtain
 
Yes, margins are cheaper - but commissions are not. Everyplace I have seen charges you full price for both legs (if anyone knows anyplace that doesn't, please let me know!) But in the modern era, commish is so low that someone doing position trades (which is that only way to trade spreads, as far as I'm concerned) shouldn't be too concerned with it...
 
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