My question is which contract to buy and which contract to sell?
For example for a Dax calandar spread Future should I buy the September contract and sell the December contract or do the opposite?
Is my logic correct? :
"if we start from the principle that the Future contract converges over time to its underlying (index dax For example). So if the September contract is superior to the December contract I must buy the December contract and sell the September contract. If the September contract is lower than the December contract then I will buy the September contract and sell the December contract. "
Thank you for your reply .
For example for a Dax calandar spread Future should I buy the September contract and sell the December contract or do the opposite?
Is my logic correct? :
"if we start from the principle that the Future contract converges over time to its underlying (index dax For example). So if the September contract is superior to the December contract I must buy the December contract and sell the September contract. If the September contract is lower than the December contract then I will buy the September contract and sell the December contract. "
Thank you for your reply .