Spread trading: Heating oil

Let's take a look at the following spread GHOK18-GHOM18 (Heating oil)

The Spread Indicator entered the overbought level. The indicator crossed above 80 suggesting that the May 2018 heating oil contract is weaker than the June 2018 contract. I would consider selling heating oil May 2018 and buying heating oil June 2018 before the closing of the market.

Initial Margin $171.00

Maintenance Margin $155.00

Spread Indicator


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