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Upon opening, Buyer A’s bid in the CLM5 pairs with Seller B’s offer in the CLZ5 to form an implied bid in the CLM5-CLZ5, wanting to buy 1 lot at 0.15. This 1 lot is matched with Spreader C’s resting sell order at 0.10, but with the improved price of 0.15. Market data reports the match at 0.15, and the resting spread market is now 4 lots offered for sale at 0.10.
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Implied functionality does not turn on until the market opens. This is why the implied bid of 0.15 is not displayed in market data prior to the open. |
Video
View the video about additional information and an animated depiction of Side Effect Trading.