Pair trading brokers

That sounds very odd. I would have assumed that futures brokers would encourage their customers to trade spreads because it reduces risk and adds commissions.
 
This thread has been very instructive. I would have simply assumed that any broker would extend spread margin offered by the exchange. So this is a good question to ask when looking for a futures broker.
 
Trader13 said:
A couple things don't sound right. Where did you get the overnight margin of 10K for that spread? It should be considerably lower. Who is your current futures broker that is requiring this margin?

Referring to your first post, keep in mind that NQ is essentially a proxy for the tech sector (Nasdaq 100) and ES represents the broad market (S&P 500). These two can diverge considerably (in magnitude of price movement) even though they are highly correlated (move in same direction). So this "pair" has more risk than you suggest.
More...

This spread has a strong directional component on the NQ side.
 
You must log in or register to reply here.
Back
Top