#### FTSE Beater

##### Experienced member
1,518 5
Hi All

Here's an odd question for you. I'm trying to trade S K4 - C K4
Both contracts are valued at \$50 per unit move

Soybeans = 8180
Corn = 2684

Now, the spread moves from 5496 to 5497 does that mean it's a \$50 move. If so it seems very large

Any help is much appreciated

#### donaldduke

##### Experienced member
1,665 257
Im getting a quote from my SB firm 265.5 (corn)
and 801.5 (soya)

So a one decimal point move is only \$5

#### Andreas

##### Active member
109 0
A one cent move in this spread is \$50. The spread moves, just like the two legs of it, in 1/4 cent increments. So in increments of \$12.50.
Bear in mind that in the 4 digit quote notation 8182= 818 1/4, 8184=818 1/2, 8186= 818 3/4, the next is 8190

#### FTSE Beater

##### Experienced member
1,518 5
Hi Andreas

So a spread move from 5496 to 5497 is worth \$5? (if it could happen)
...and a move from 5496 to 5506 is \$50

#### Andreas

##### Active member
109 0
It will never move from 5496 to 5497. As a matter of fact in this notation 5497 does not exist. The increments are in 1/4 cents (minimum move up or down \$12.50), so in this notation you can only see 0, 2, 4, or 6 as last digit. A move from 5496 to 5506 is a move of 1 cent, so you are correct that it is a \$50 move.

Best regards,
Andreas

#### FTSE Beater

##### Experienced member
1,518 5
Hi Andreas

Thanks for that

S K4 - C K4
Chart courtesy of www.MRCI.com

#### Andreas

##### Active member
109 0
Spread has been in a long uptrend. Looks a bit toppy now. You might want to watch the negative divergences with Slow Stoch and RSI. From what I saw on the board today it is still going your way.

Andreas

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