Directional
Experienced member
- Messages
- 1,992
- Likes
- 251
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?
Also how did it happen, somebody just wipe out @ market or reload a price?
why an odd trade? don't consider the price action since but why is that an odd trade?
selling equities, buying bonds.
why an odd trade? don't consider the price action since but why is that an odd trade?
selling equities, buying bonds.
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 ?
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.
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 ?