The Traderszone Network

Published in TZ Latest News 22 July, 2017 by The TZ Newswire Staff

Execution of butterfly spreads

This question is regarding the execution of 2 exchange traded calendars combined to make a fly. When you submit the fly to the broker with a limit order, the first side enters on a limit order and the second side enters on a market order.

Does this mean I automatically lose 1 tick entering the fly with a limit order? And if I enter the fly with a market order do I automatically lose 2 ticks (both sides using market orders)? How does it work?

I’ve also been watching clips of STIRS spread…

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