Making money with spreads?

Oct 21, 2006
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#1
Going on a grad programme with London prop firm in April, they say they mostly trade interest rate spreads like calendars on STIRS and Bund, Bobl, Schatz, they say peopel can make 7 figures doing this after costs.

Is this true or is it a hiding to nothing, would of thought outrights traders make more?
 

Directional

Well-known member
Feb 17, 2005
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#2
people can and do make seven figures trading spreads. same as any type of trading though, it depends how good you get at it and how big your edge is.

If you cant apply a method effectively, or dont have one, then you can lose a lot of money trading spreads OR outrights.
 

TWI

Well-known member
Jan 22, 2004
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London
#3
"can" is an interesting word it is different from "do". The people making 7 figures scalping spreads as locals are exceptional. Personally I would say it is harder than position trading. Yyour first goal will be cooering your costs, suggest that should be the 6 month goal if you want to keep it real.
 

charliechan

Well-known member
Jun 18, 2005
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#4
most of the people i know doing this are finding it harder and harder every day because of the amount of automated trading programs out there. it isnt too hard for a computer to spot a price discrepancy a long the strip and take out what ever is there to get it - whether it needs to be a condor, fly, cal or outright, before the local has even spotted it.

many of them are now moving to energy spreads instead.