Crude Arbitrage, QM vs CL
So i have noticed spreads on the QM (mini ny crude) tend to be pretty wide compared to the CL(Nymex pit traded). Spreads on the QM tend to be 2-3 ticks (5-7.5 cents) vs (1-3 cents) on the pit traded full size contract.
My question is is this margin already too tight or could a potential arb exist with someone on the floor os the nymex with a screen trader on the QM?
Im not sure how much size you really can pull off on the QM at a given level without having impact. Why is this descrepancy this large. Also im really not sure what the risks are. It seems like classic arb to me, granted one contract is 500 barrels and the other is 1000 barrels but thats easy always 2:1 ratio.
Anyone want to shed some light on this?
Dolores molestiae nesciunt molestias nihil quo sit cumque. Vel delectus qui repellat ut cupiditate. Perferendis ea suscipit pariatur id.
Omnis dolores cum molestias quia. Qui expedita quia voluptatem eaque voluptatem nobis necessitatibus.
Amet at neque illum nam. Qui accusamus qui doloribus et voluptatem natus. Ut ut possimus corrupti qui eaque neque. Autem accusantium fuga nemo eos.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...