Spread Trading Across Exchanges and Asset Classes

Welcome to Rival Systems’ cutting-edge multi-asset trading platform Rival One!

Rival One offers an advanced low-latency spreader, which allows traders to create their own custom synthetic instruments spreading between multiple products on a single exchange or products across different exchanges to create limitless trading opportunities.

This video will demonstrate one of these opportunities made recently accessible due to newly listed cryptocurrency futures instruments on the Coinbase Derivatives Exchange.

  1. Creating a Synthetic Spread– The first leg will be the CME Micro Bitcoin contract, and our second leg will be the Coinbase Derivatives Nano contract. We’ll use the CME as our hedge leg (driver leg) and the nano contract as our floating light viewing our synthetic instrument in the spreader window.
  2. Fractional Spread Trading– The nano contract is 1/10 the size of the micro contract. We’ll trade in $5 increments, trading ten contracts for every one micro, leaving the price multiplier at 1 to 1 to display the price of even money.
  3. Orders on the Ladder– We’ll drag our newly created instrument onto our workspace to see each individual leg on the ladder plus the market. A couple of orders will work to sell five of our synthetic spreads at $5 and pay -$5 on another five. The order book shows the parent spread working five lots and the individual legs working 50 lots to account for the one-by-ten price declining multiplier.
  4. Order Execution; Tracking, and Filtering– We’ll take a fill, five below the market, to observe behavior on an execution. Our order book updates individual orders on the quote leg and hedge light. Our portfolio reflects our trade 50 by five on our five-lot spread, and the trade book shows the entry price and the executed price, which are the same. Expanding the trade book shows the individual legs comprising our spreads and the associated parent spread to track and filter individual leg sales.

This is just one example of how Rival One’s powerful spreader can help traders generate and execute custom trading strategies.

Start Trading Today on the Rival One, Multi-Asset Trading Tool. Visit: Rival One