Strategies

Reduce Margin Without Affecting Risk

“New” Switch

No prior position, initiate a switch position

“NO” Switch

Switches you should NOT execute, despite apparent offsets

FCM Transfers

Transfer position from one FCM to another

Inter-Exchange Switches

Same exact lookalike contract on Nymex vs ICE

Inter-Exchange, Inter-FCM Switch

same exact lookalike contract; Nymex leg on FCM1; ICE leg on FCM2

Switch Packages or Rolls

M/Z Nymex/ICE Switch Roll

Margin Reconciliation

Are you being correctly charged by your clearing broker

Position Limits

optimizes switch execution for position limit day

Awareness for a Rainy Day

MF Global, Lehman, Peregrine

Leverage
Ratio

Monitor leverage ratio in real-time (e.g. Geneva Trading vs ABN)

Inter-exchange margin
saving example switch

Intercommodity

Different Commodity

$5,500,000

Initial Margin

Inter-exchange chart

Inter-FCM margin
saving example switch

Intermonth

Different Month

$4,100,000

Initial Margin

Inter-FCM chart

‘No Switch’ Rec’s

Switches you should NOT execute under any circumstances!

No Witch recs chart
No Witch recs chart

'New' Switches

No Prior Position

New Switches chart
New Switches chart

Inter-Exchange
Inter-FCM Switches

Nymex Leg on FCM1, ICE Leg on FCM2

Inter-exchange/Inter-FCM switch chart