Hi
Are there any indicators that better suit spread trading, in my case, a stock against the index ( long vodaphone, short the ftse) or ( long barclays, short hsbc) abviously doing the same amount in underlying money.
As the move in the spreads is likely to be alot less than the move in the outright stock, ie if barclays goes up 10% the spread may only move 1% as hsbc is also likely to move up in this case ive assumed 9%.
any help would be appreciated.
Are there any indicators that better suit spread trading, in my case, a stock against the index ( long vodaphone, short the ftse) or ( long barclays, short hsbc) abviously doing the same amount in underlying money.
As the move in the spreads is likely to be alot less than the move in the outright stock, ie if barclays goes up 10% the spread may only move 1% as hsbc is also likely to move up in this case ive assumed 9%.
any help would be appreciated.
