Spread Trading: Heating Oil

Let's take a look at the following spread GHOF18-GHOG18 (Heating oil)

The Spread Indicator entered the overbought level. The indicator crossed above 80 suggesting that the January 2018 heating oil contract is weaker than the February 2018 contract. I would consider selling heating oil January 2018 and buying heating oil February 2018 before the closing of the market.

Initial Margin $429.00

Maintenance Margin $390.00

spread indicator

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