Description

Understanding Spreads ebook

Must have if you want to learn low risk futures spread trading (hedging). Great beginner-friendly intro book into the world of futures spread trading.

Content: 30 pages pdf ebook

Trade like hedge funds do! Futures spread trading is a futures trading strategy in which you simultaneously buy one futures contract and sell another to take advantage of the price difference. So, it is an arbitrage technique where you complete a unit trade with both a long and short position.

Futures spread trading is a futures trading strategy where you take opposite positions in the same or related futures contracts. The idea is to reduce the risk, but at the same time, it allows you to profit from the pricing inefficiencies for one or several instruments.

Spread trading is less risky than normal trading, furthermore the margin required to execute a spread trade is lower than the combined margins needed to execute the two opposite trades if placed separately. The low margin requirement makes spread trading easier.