This segment is about the connection between the Mexican Peso (/6M) and Crude Oil (/CL) and includes a possible futures spread trade between the Peso and Crude. This segment should have you thinking about trades in a new way.
The Mexican Peso and the currencies of other Latin American countries have been declining over the last year or so. Last week the Peso hit a record low versus the dollar. Crude oil has also seen a decline from a year ago. Both provide an opportunity for traders.
Pete Mulmat, our futures expert, reviews the markets and then delves into the fundamentals behind the declines. He further discusses some of the larger picture impacts including the political impact.
Pete shows the correlation between the Peso and Crude. A chart shows how they track each other. An important point that Pete makes is how much volume and liquidity have improved in the Peso. While the lower volume of a year ago may have scared off some traders the huge increase should put any fears to rest.
Pete provides the contract specifications for the Peso and for Crude and shows how he came up with the numbers for each side of his spread. The spread is then detailed.
Watch this segment of “Closing the Gap-Futures Edition” with Tom Sosnoff, Tony Battista and Pete Mulmat to learn Pete’s trade idea and to learn more about the correlation of Crude Oil (/CL) to the Mexican Peso (/6M) and how to trade it.
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