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Autospreader

Protecting your Spreads

The Offset Volume Multiplier protects you from being legged (i.e., filled on one leg but not the other). It does this by allowing you to define a multiple of the order quantity that the hedge leg that must be available in order for Autospreader to quote at a particular price. The order quantity times the Offset Volume Multiplier is used by the quoting leg(s) to determine where to quote. This field accommodates decimals up to three places and is set to 1 by default.

Example: Quote Against a Minimum of Two Times the Size of the Hedge Order Quantity

You want to quote against a minimum of two times the size of the hedge order quantity. Entering a value of 2 in the Offset Volume Multiplier field in the hedge leg will cause Autospreader to determine the price level at which two times the size of the order quantity exist in the hedge leg in order to determine the price at which it will quote in the other leg.

Example: Quote Against a Minimum of One-Half the Size of the Hedge Order Quantity 

You want to quote against a minimum of one-half the size of the hedge order quantity. Entering a value of .5 in the Offset Volume Multiplier field in the hedge leg will cause Autospreader to determine the price level at which one-half the size of the order quantity exist in the hedge leg in order to determine the price at which it will quote in the other leg.