Pairs trades allow traders to reduce risk, increase trade duration, and stay engaged in periods of low volatility.
In this segment, Mike, Tony, and Tom walk through how to trade pairs in equity index futures.
Tune in as they walk through the steps below:
- Find Correlated Markets
- Determine the Notional Values
- Adjust Notionals by Implied Volatility
- Find the Contract Amounts to Match IV Adjusted Notionals