Intra market spreads

mcdoma

Junior member
12 0
Does anyone know a website where I can lear to trade the schatz v's bobl spread? Or perhaps someone would like to tell me how to construct the trade?

Any feedback would be much appreciated.
 

Sahil

Junior member
33 0
I'm not aware of any websites, but do trade the spread.

I believe the 'real' ratio is currently 2.5:1 (e.g. buy 25 Schatz contracts and sell 10 bobls to spread).

You can look at various technicals and fundementals to decide where to get into positions.

Although basic, hope this helps.
 

mcdoma

Junior member
12 0
Sorry for the ignorance, but what technicals / fundamentals should I be looking at to calculate this ratio?
 

Sahil

Junior member
33 0
Look at technicals / fundementals / news / etc to decide where to get into the spread (i.e. what value do you decide to buy / sell).

The ratio I get precalculated from a Bloomberg terminal - it's probably availble from other services too. I don't know how it's worked out - too much for me!
 

TWI

Senior member
2,536 254
O.K. had a word with a seasoned Bobl/Shatz trader. Most people do 2:1
but it is a mugs game these days apparently, he shoudl know, he trades it.
Eurex works on first come first served basis as appose to Liffe which is pro-rata, so all these guys get in early and start stacking orders, if they get filled one side they do the other. There is not a lot of edge left in it as everybody is trying hard and the big boys will spoof the small player out much of the time.
Like I say this is what I was told by a guy who now trades more Curve spreads than inter market.
 
 
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