I was looking for an interesting way to get involved for a UK election trade, and something like this was brought to my attention based on a strong currency futures seasonal pattern.
The trade here is actually 6BGBP-6EEUR September 2017 futures on the CME. The seasonal window is 7th until 20th June and is really strong (if you have access to a spread scanner take a look).
This is the trade structured using spot FX which is how I'd prefer to trade it on this occasion due to election risk (CME futures are closed 5-6pm EST which is when the exit poll results are expected).
Using futures the weighting for 6B to 6E is 6.25:12.5 all in USD. Hence the need for this odd looking spread. The net result is -2x EUR +1 GBP +1 USD.
The trade here is actually 6BGBP-6EEUR September 2017 futures on the CME. The seasonal window is 7th until 20th June and is really strong (if you have access to a spread scanner take a look).
This is the trade structured using spot FX which is how I'd prefer to trade it on this occasion due to election risk (CME futures are closed 5-6pm EST which is when the exit poll results are expected).
Using futures the weighting for 6B to 6E is 6.25:12.5 all in USD. Hence the need for this odd looking spread. The net result is -2x EUR +1 GBP +1 USD.