How do you approach trading spreads like this?

i960 said:
There are three classes of native exchange listed spreads:
  1. Listed as a first class product with it's own book, implication turned on (this is preferred).
  2. Listed as a first class product with it's own book, but implication turned OFF (WTI, Brent, etc, not preferred).
  3. Not listed at all but synthetically constructed with lower order products (cal vs cal, outright vs outright, etc).
Both CL (CME) and WBS (ICE) have exchange traded flies, except they fit into #2.
STIRs, Corn, Wheat, other Ags have exchange traded flies, but they fit into #1.

As far as which one you use - that's one place where a decent autospreader provides value, because it considers *all* liquidity to determine the tightest bid/ask of the instrument you're trying to spread. Generally within energy you use cals, within other products it depends on product.
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Am I reading this right, that these are "US Treasury" exchange traded spreads with Implication turned on?
https://www.cmegroup.com/trading/interest-rates/files/ics-ratios-2017-03.pdf
 
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Adam777 said:
Am I reading this right, that these are "US Treasury" exchange traded spreads with Implication turned on?
https://www.cmegroup.com/trading/interest-rates/files/ics-ratios-2017-03.pdf
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Well, some execution platforms may require that exchange supported, or "implied" spreads be enabled within that platform. In fact, I can think of a few execution platforms that dont even support exchange spreads. Some retail clearing firms don't support exchange spreads (their bread and butter are scalpers). Several charting platforms won't support exchange spreads. A quick call to your platform's Tech Desk would resolve that question. Also, obviously that .pdf does not list the many hundreds of exchange implied Eurodollar Spreads which are intramarket spreads. The US Treasury spreads that are listed in that.PDF are intermarket spreads. That .pdf does NOT include US Treasury exchange implied Calendar Spreads, which are intramarket spreads (same product - legs with different expiry).

The ICE owned exchanges and Eurex also have many exchange supported implied spreads.
 
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I feel like spread betting is comparatively less risky and can be a great trading strategy. I'm more of a long term player but I have used spread betting to turn a profit once or twice in the past.
 
That was a nice thread. I am wondering if some here like xandman, i960 or propwarrior have found some gold in their tight range multileg mean reverting techniques...Perhaps they will want to share or even better...pretend they wasted their time, when all of a sudden all their posts are on the tax and trading jurisdictions forums...:D
 
Williamharvard said:
I feel like spread betting is comparatively less risky and can be a great trading strategy. I'm more of a long term player but I have used spread betting to turn a profit once or twice in the past.
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If I have to trade based on spreads, do I need to resort to a certain type of broker/platform or my usual would do?
 
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