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Direct MessagesDate/Time: Fri, 10 May 2024 13:27:36 +0000
Post From: Implied Spreads
| [2015-09-09 23:50:36] |
| Trade Nice - Posts: 75 |
|
So on the link you posted: http://www.cmegroup.com/confluence/display/EPICSANDBOX/Futures+Spreads, on that link I cannot see one reference to "exchange traded spread", but there are multiple mentions of 'implied spreads' although I suspect that that page has not been fully updated with CME offerings. The listing in general is about futures spreads and its general spread trade examples which might be about two contracts entered into at the same time with the risk that one or both might move, so for example a market order might be completed at a different spread price than expected, and a limit order might end up with only one side of the spread filled. This might not be a good example, but I am trying to fit this response in order to highlight the point of an 'implied spread trade'. An 'implied spread' trade has a fixed ask bid for the spread, so with a limit order for example, you would end up with either obtaining the spread at your specified value or you would not get filled. You cannot end up with only one leg of the spread. The CME offer implied spreads on some spread trades, but not all. The do offer it on crude oil spread trades, and so most I assume would use the 'implied spreads' to trade the crude oil calendar spread. Of course even though the CME offers implied spreads, it would be possible to trade the CME crude oil spread by just going long and short the two appropriate crude oil futures contracts if you wanted. Implied spreads are a wonderful invention and if your offering is the implied spread, then that is wonderful as well! The question is if your symbol is prompting data from the CME implied spreads or from a CME mathematical process on two futures contracts? Here is a link on CME implied spreads http://www.cmegroup.com/confluence/display/EPICSANDBOX/Implied+Orders |