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Seven Points Capital, LLC operates an experienced spread trading desk. We execute agency trades on behalf of hedge funds, pension funds, investment advisors, and professional traders. Our spread traders can work a variety of strategies. The spread desk uses the latest technology to efficiently execute orders at a rapid pace while minimizing market impact.

 

 

 

   Stock vs. Stock
   Stock vs. Option
   Option vs. Option
   Future vs. Option
   Future vs. Future

   Pairs Trading
   Merger/Risk Arbitrage
   Position rotation
   Portfolio Rebalancing
   Ratio Spreads

Credit/Debit Spreads
Dollar value spreads
Index Arbitrage
Cross Asset Arbitrage
International Arbitrage



We leverage the use of technology and years of experience to give us an advantage over traditional human spread brokers. Our ability to work complex orders, combined with tools that increase speed and efficiency, allow us to consistently provide quality fills even on orders that would seem “hard to get done”. Many spread strategies lack a market mechanism for effectively executing spread trades while adhering to a strict limit. Through diverse market connectivity, advanced algorithmic trading engines and robust enterprise-level technological infrastructure, it is possible to:




Seven Points Capital vs. Traditional Spread Traders:

Seven Points Capital’s Traders:
Our traders use advanced algorithms that monitor price, size, and liquidity across various market participants and responds by sending orders that instantly reflect the market at that second.  Orders are sliced into pieces to rapidly execute small legs, minimize slippage, and take advantage of illiquid situations.  These dynamic processes come together to capture a spread even when it exists for seconds, thus maximizing the orders completion rate and capitalizing on opportunities that a traditional human broker would ordinarily miss.  Our traders are able to tweak a variety of parameters and variables which, when independently configured and aligned, create the maximum potential for achieving quality executions.

 

Traditional Spread Traders:
Human brokers/traders monitor prices and bid/offer size on multiple executions venues.  From this information they must process slippage, order size, hedging ratios, execution destination, and manage mis-hedge risk.  Traders usually manage a spread by legging a fixed order amount when the desired spread presents itself in the market.  Such consistent order size and predictable behavior hand-cuffs a trader’s ability to quickly react and process information in an extremely dynamic environment.  This narrow approach prohibits traders from capitalizing on opportunities that appear and disappear in seconds.




 

 

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