FKLI Spread Tading - illustration
Today, 14/11/2016 moring. the SPREAD of spot month(NOV) and next month(DEC) widen to quite abnormal range , aka highest -8.5points
What is 8.5points?
Example:
Nov at 1610
Dec at 1618.6
Different is -8.5pts (negative 8.5pts)
Click to Enlarge the pic.
Nov-Dec Spread Movement:
I feel it is abnormal why next month is higher than normal range (on par or +1pts diferent)
Hence, i BUY -7.5pts (expect it up back to normal 1 or 0(zero) pts)
(execution: Just key in BUY(long it up) 1 Lot at -7.5pts.)
At the 2nd session, the SPREAD of FKLI NOV-DEC keep going up and hit -0.5pts high.
(execution: Just key in Sell (close position ) 1 Lot at -1pts.)
Hence, i liquidate at -1pts
How much i earn?
Calculation:
- 7.5pts minus -1pts (narrow the gap) and i gain 6.5pts with merely RM450 SPREAD MARGIN.
What is the return?
6.5 pts x RM50 = RM325.
RM325 / Rm450 = 72% return.
Out of topic, My friend ABLE to follow and understand SPREAD Trading now. Sample refer below:
Kudos!
Happy Trading.
Mars:
0103663298
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