25k Stoxx & Bund ticks

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Directional

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Anyone else see those three big 25,000 lot stoxx sell clips go through? someone was buying the bund in similar clips at the same time... some big spead play going on?
 
thats what i was thinking...! although very likely I didnt see half of what else they've put on. The first stoxx sell and bund buy went through at the exact same second, so its gotta be the same person/entity...
 
Last edited:
I never saw this, although i finished trading at cash close today. When did it happen arb on the MOC's?

Also how did it happen, somebody just wipe out @ market or reload a price?
 
DC STOXX said:
Also how did it happen, somebody just wipe out @ market or reload a price?
Click to expand...

I wasn't looking at the DOM or T&S when it happened, but on my chart the first stoxx down tick was at 16:30.43s and it looks like they swept the board... I'll try and post a screen grab a little later
 
I know someone who said he was trading the bund/estoxx spread yesterday. Said he lost 5 mil.

Fortunately it was only on a simulator, or did his trades somehow make it to the real market?
 
Stoxx up, Bund down... if they really were putting this odd spread on then "they" are getting squeezed!!
 
Veeerryy odd trade...

Maybe they spent too much time in their garage getting stoned like ahem certain other people here like doing before they started trading hehe.
 
why an odd trade? don't consider the price action since but why is that an odd trade?

selling equities, buying bonds.
 
gooseman said:
why an odd trade? don't consider the price action since but why is that an odd trade?

selling equities, buying bonds.
Click to expand...


perfectly true, its a valid tradeable spread. Not one I'd like to trade, especially at those sizes, at market!
 
Why do people trade spreads ?

I'm not saying that it's nonsense, I just don't get it ?

And why does Mauzj say you need special market conditions and technology for that ?

EG re the technology part, if my technical analysis says Eurostoxx is going up and Bund down or even that they're too far extended and coming back in why can't I just enter those orders on my normal broker platform ?

Maybe I'm really having my blonde moment of the day...
 
BSD said:
And why does Mauzj say you need special market conditions and technology for that ?

EG re the technology part, if my technical analysis says Eurostoxx is going up and Bund down or even that they're too far extended and coming back in why can't I just enter those orders on my normal broker platform ?
Click to expand...

It really depends on your strategy. But if you're using a broker platform to do one leg at a time, you're going to be a lot slower than someone using an autospreader and will often get prices worse than the ones you want.

Say you buy some eurostoxx and, and then try to sell the bund. By the time you've received confirmation of your eurostoxx fill, there's a good chance the bunds will have moved. If the market are correlated, then the chances are that the bund will have moved against you.
 
mauzj said:
It really depends on your strategy. But if you're using a broker platform to do one leg at a time, you're going to be a lot slower than someone using an autospreader and will often get prices worse than the ones you want.

Say you buy some eurostoxx and, and then try to sell the bund. By the time you've received confirmation of your eurostoxx fill, there's a good chance the bunds will have moved. If the market are correlated, then the chances are that the bund will have moved against you.
Click to expand...

Thanks mate that definitely makes sense.

Does your firm let you do outrights, or will you have to change if you want to do that ?

I dunno but I seem to hear a lot of people saying that they'd prefer to start doing outrights, that the spreads have become harder and harder, maybe because quite a few of the algos do them automatically and with even greater speed than humans can, even if they have autospreaders ?

Does that make sense ?

Or am I talking nonsense...
 
BSD said:
Thanks mate that definitely makes sense.

Does your firm let you do outrights, or will you have to change if you want to do that ?
Click to expand...

My limits are for spreads and in terms of outrights they're pretty huge. In terms of spreads they aren't very large. If I started doing outrights in any sort of size, there's a good chance I'd lose and given a spanking by the risk manager. They wouldn't mind/notice if I started punting a few lots of bund, but at EUR10 a point, and with no defined edge, I don't see the point yet.

I dunno but I seem to hear a lot of people saying that they'd prefer to start doing outrights, that the spreads have become harder and harder, maybe because quite a few of the algos do them automatically and with even greater speed than humans can, even if they have autospreaders ?
Click to expand...

It's hard to say how much impact algos are having. I don't run any myself, and I doubt anyone using them is going to make their stats public. At the moment it's very hard getting a good fill using an autospreader unless some human input (i.e. observe price action in underlying outright contracts) is involved too.
 
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