Monday 13 June 2011
A long term trade
I have been watching the Euribor March 12-September12 spread for a while. Although not charted it I could see its been tanking. I decided to long it today, 8 by 8 and if it goes up try to hold it, I won't take any off until at least 20s. The interest rate between the two are really close and there 6 months apart. March is predicting 1.89% and September 2.05% and today the interest rate is 1.25%. I think they will be hiking rates during this period more than the market thinks and this spread is really low. Although it can always go lower and even negative. Below is the spread since just before March and I am long 16.5s, 1 tick for me is 200 euros (EDIT: I thought it was 100 euros and just realised so I have put more on than I thought! but already in profit and I wanted to do more so will keep it) I never do Euribor spreads so its a first time thing for me.
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Hey, I just learned fro my friend he trades the fly spread in a London Prop firm as well. Probably tons of prop firms in London do so as well, its probably just coincidence. But anyway, could you explain more of what the fly is and how it is set up, saw one of your older post but it still wasn't clear to me. I'm a straight outright futures and forex trader so this is all interesting and new to me.
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