How Implied Orders Connect Futures Contracts in Exchange Order Books

Summary

This discussion points readers seeking to understand implied pricing in futures markets toward exchange and trading-platform documentation. The questioner found introductory vanilla examples insufficient and wanted clearer explanations of implied orders and implied books, including how they work across CME and ICE markets.

The answer recommends materials on CME implied orders and examples, ICE’s implied-trading FAQ and an example linked from it, plus Trading Technologies material on calculating implied-ins, implied-outs, and implied prices generated from other implied prices. Together, these resources are intended to explain how displayed opportunities can be derived across related contracts and how generations of implied prices arise. The document itself does not explain the calculations, provide worked examples, or compare exchange implementations; it is a curated pointer to resources, so readers must consult those materials for operational details.

Key ideas

• Implied pricing can create order-book opportunities across related futures contracts.
• CME and ICE publish documentation and examples on their implied orders.
• Trading Technologies material covers implied-ins, implied-outs, and prices derived through successive generations.
• The discussion identifies learning resources but does not itself explain the calculation mechanics.

Tags

# Resources to read more about/learn how implied pricing works


# Resources to read more about/learn how implied pricing works












I was looking at this video today:

http://www.cmegroup.com/education/interactive/webinars-archived/implied-price-functionality.html

on implied pricing. And am aware that implied orders/pricing exists in ICE as well. I found it difficult to follow (the video) beyond the vanilla examples and was wondering what other resources might break this down a little more that I can search for or reference to understand implied orders/pricing/book in these markets.

## Answer by MajorInc (score 2, accepted)

https://quant.stackexchange.com/a/42592

I have been looking at this recently and found the following resources very useful:

- CME Implied Orders (IN/OUT)

- CME Implied Orders Examples (IN/OUT)

- ICE Implied FAQ

- ICE Implied Example - link in the ICE Implied FAQ aswell

- Trading Technologies Calculating Calculating Implied Calculating Implied Ins Calculating Implied Outs Calculating Implied from Implieds - Useful to understand what is meant by the word generation in the implied context

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.