Chicago, IL
Experience: Master
Platform: X_TRADER, TT
Trading: ES, NQ, ZN, CL, 6E
Posts: 167 since Feb 2016
Thanks Given: 72
Thanks Received: 122
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They're both synthetic spreads. What you get with a spreading application is optimal execution. Let's say the price of bonds is 15 tick higher than the price of notes. You could manually bid 3 ZN and offer 1 ZB but you may not get both as they're highly correlated. If your bid in ZN gets filled it is likely your ask in ZB is now off the market and you'll have to lower your ask price in ZB. Effectively, instead of buying the spread at 15 you may now pay 16 or 17. An automated spreader will only execute the legs when it is certain that you may buy the spread at 15.
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