Intra market spreads

[mcdoma]

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]

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]

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

 

[Sahil]

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]

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.