Futures Spread Trading
How professional traders optimize profits
Futures spread trading is probably the most profitable, yet safest way to trade futures. Almost every professional trader uses spreads to optimize his profits.
A futures spread trade involving the buying (selling) of a ten-year Treasury note futures contract and the selling (buying) of a Treasury bond futures contract.
[MORE]
Visible Supply ...
Seasonal Futures Spreads
Just as seasonals can be applied to futures contracts, so to can seasonals effect spreads. Spread trading involves following the difference in price between two futures markets.
Don't put on a futures spread as a hedge against loss.
You buy a futures contract and the price goes down. You feel confident that the downward movement is only temporary and that prices will soon rally and do so for a long period of time.
CRUSH SPREAD - A futures spreading position in which a trader attempts to profit from what he believes to be discrepancies in the price relationship between soybeans and their two derivative products.
Futures Spread A technique where you buy one commodity and sell another contract of the same commodity to gain due to a discrepancy in prices.
The trade basically consists of two futures spread transactions with either three or four different futures months at one differential.
Definition
NOB (Note Against Bond) Spread
A futures spread trade involving the buying (selling) of a ten-year Treasury note futures contract and the selling (buying) of a Treasury bond futures contract.
Ask a Question ...
Butterfly Spread - The placing of two interdelivery futures spreads in opposite directions with the center delivery month common to both futures spreads.
... daytrades stock indices, currencies, and forex. He trades futures spreads and options on futures, and has written ...
15. Independent Investor - Getting started and building wealth
(Articles/Stocks) ...
Reminiscences of a Stock Operator by Edwin Lefèvre (best-selling biography of Jesse Livermore) multiple reissues, last in 2004 (ISBN 0-471-67876-7)
Futures Spread Trading by Steven A. Mitchell ...
Butterfly Spread - (1) A futures butterfly spread is a spread trade in which multiple futures months are traded simultaneously at a differential. The trade basically consists of two futures spread transactions with either three or four different ...
He owns and operates Just Spreads, a website dedicated to providing spread trade opportunities, market analysis, daily updates and continuing education across a select group of US and Australian futures spreads.
Otherwise, you're likely to mis-judge the seasonal changes in commodity price. If you are able to tell what different commodity futures do from month to month, then you'll have no trouble making money on futures spread trading.
Comment: Reference: Geoffrey Poitras, "Turtles, Tails and Stereos: Arbitrage and the Design of Futures Spread Trade Strategies," Journal of Derivatives 5, Winter 1997, pp. 71-87.
Spread Trading - Futures vs FX Futures - In Futures Spread Trading the trader simultaneously buys (longs)... sprinkling trust A living trust or will in which the trustee has discretion over how the trust's...
[Harvey] The uncertainty as to whether the cash-futures spread will widen or narrow between the time a hedge position is implemented and liquidated.
 See also: Future, Futures, Spread, Market, Trading
|
