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Old 08-20-2004, 09:51 AM   #7 (permalink)
jimk
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Location: Chicago
spreads

i work in the u.s. equity futures pits in chicago, and we do a lot of spreading. it involves looking for correlation between two or more products, deciding when there is a divergence in the correlation, then buying the cheap one & selling the expensive one. when they converge, you unwind your positition and go to the bank.

it's a good way to trade futures and reduce your directional risk.
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